VIC Geelong or Wyndham Vale/ Werribee?

Anyone have any thoughts on which areas would be best to look for an investment property purchase?

 

Have you done some research yourself? Geelong's got 60 suburbs all up, markets within markets.

The yield's going to be poor in most of Werribee, unless you can add some value. There may be some deals in WV, fraught with risk though, tread carefully.

 

What's the budget? What's the strategy - just passive buy and hold, renovate/add value, development potential?

 

I have 5 properties in Wyndham area (Hoppers). They have doubled in their value in the last 10 years. Rents have gone up. I bought them close to the station and schools.

purchased in Wyndham, due to less price entry point.

Now, I concentrate in the East and South East of Melbourne.

Disadvantages: Not stable tenants and they don't look after the house.

 

I bought 2 properties.

1) 1st property left it as it is. doubled in value, rent doubled

2) second property, land was 888 sq m close to the station , so I built 2 townhouses and 2 units of it. It was one of the best properties.

 

Buy and hold, possibly renovate/ develop/ add value if possible

Which suburbs?

 

Wyndham area: all my properties are in Hoppers Crossing, Close to the station, and schools.

in South East: I invest, in Bentleigh, Bentleigh East, Ormond, Mc Kinnon.

Looking around Caufield and North Caufield as well.

 

Nice. Great suburbs in south east. What types of properties do you look at in these areas?

 

I buy older properties with subdivision potential,

Buy old properties, build 2 townhouses, Hold them, refinance and do the same process all over again.

 

Hi Hari.

Would I be correct to assume you leave the original property intact? As I was always told getting rid of 1 to put up 2 is never profitable (unless buying for very close to land value ofcourse), only way to make money is get rid of 1 to put up a minimum of 3? Is that correct?

Regards,
K.

 

I do the following.

1) Buy a house, close to the land value
2) Rent it while getting permits / Sometimes leave it vacant (un habitable houses)
3) Demolish and put 2 - 4 townhouses. preferably only 2. It's not how many houses, you built on the site. Recently, in Footscray, I am building 4 townhouses on 472 SQM block. in Ormond 2 properties on 650 sqm block.
4) Hold them
5) refinance

 

Nice...

Out of curiosity, do you use a BA or someone to find these sites for you? Or you just go hunting on websites like domain or rea?

 

For some sites. I use Buyers Agent, a few sites I found myself. Some buyers agent, buy the property, get me the council approvals and build the house. total package.

Buyers agency, who are so specialised in one particular area, can get you a far better site than anyone can get.

I got 6 townhouses on the go. I am going to next with one with the help of buyers agent.

I dont mind paying for the experts in the field.

 

Out of interest, which builder do you use for all your development ?

 

I have used different builders for different sites. no one in particular, I take some reference here and there and talk to 5 builders and ask for quotes.

Make your own specification documents, write down , every single item, like branding name and model number, My specifications document run up-to 60 pages.

Elimination 1: Standard template quotes, without looking at your specification documents.

Most builders send me their standard packages in an email, so ignore them.

 

Would you mind sharing who you use as this total package buyers agent?

 

of course. Please send me private. I shall send the details.

You can check their site and read more about them.

 

Do packaged buyers agents also assist with subdivisions applications and project costs estimations as well?

 

1) Buying a site you can choose anyone , they are called buyers agent 2.5% + GST roughly

2) Fixed price to get your permits (you have lot of companies, you can research online) . or use the same company.

3) Construction management + Building (you can choose your own builder and you can manage yourself or take help of the same company or choose help of some other company).

There is nothing called a package.

Holiday package are very popular. In construction industry, you will have to decided what you need assistance and what you don't.

If you got time and knowledge, you dont need anyone.

It is like opening a Pty ltd company, you can open on your own or goto accountant to help you set it up. It not a package. fees are charged accordingly.

 

What is your view on buying in east/south east vs west? May I ask why you did not start with south east/east and decided to start with the Wyndham council?