VIC Has the sky fallen in Reservoir?

williams landing is in the west - it is more a H&L area.
i own a few in the next door suburb pt cook. it is diff type of investing to existing houses. Williams landing and pt cook has already gone up after years being stagnant.

 

lol, ok, too late to most areas in Melbourne for me then.

 

Forget it man, capital growth, I think there is very little juice left in Melbourne. Realistically one has to spend at least $700K to achieve some measly return of around 2% on average.

As I mentioned in prior posts - there literally only a handful of suburbs left for sub $700K, all of which has been discussed in this thread. Dallas mind you is below a flight path so bear that in mind and I think it has building restrictions as well? Hence, I think there will always be a limit on how much it can grow.

I don't think there is any real "smart money" in Melbourne left, don't look here guys, Melbourne is about to be "full"!

 

Agreed
We are talking about very average suburbs with 600k properties that cost about 80% less 2 - 3 years ago.
Buying now as an investment would be quite risky i would think. Even with 20% more growth you will really only break even over the next 5 years (stamp duty and your negative gearing costs )
After your costs you would really want these 600k places (real cost after stamps and neg gearing 700k) to be worth 900k in the next 5 years. This would mean for you to make good money from here the median in these places has gone from 350 - 900k in 8 years or a gain of over 250%
So this boom would have to outlast and out perform all previous Melbourne booms.
And it would have to do so at a time when our economy is fairly slow and with no real wage growth.

 

Spot on.

Dallas has the most stringent airspace restrictions of any suburb of melbourne. Near all of it cannot be divided, and you cant extend a house by more than 50% of its current floor area (including if you rebuild). I was pushing my sister to buy there in 2015 when you could pick up a house for under 300k. Based on yield, its decent compared to what else is around so i guess it depends on how good your tenant is, because there are a few horror stories around there.

 

Hi to confirm does this mean that buying at 650sqm block has no advantage over 500-649 sqm blocks in building 3 lot townhouses? I am looking at buying some 650sqm blocks with view to build 3 townhouses. So the new garden restrictions would mean there is no advantage with the new guidelines?

Some help would be appreciated.

 

of course a larger block has and advantage but if you think logically percentage wise, in the percentages below - you're losing 51.6sqm (and paying more for the block) if you are in the general residential. if you're at the 800-900sqm mark - yeah but if you just pass the edge - I think you're getting cut short.

 

agree with you there is not much in Melbourne to purchase left within affordable marks (hence the rise of the Pt cooks, Williams landings) - maybe werribee, altona north.

I think you don't have to purchase 700K - you can look for suburbs like for e.g. in lalor below 700K had many examples. If you're looking to purchase and just rely on organic growth - it's going to be hard, you should look manufacture growth through renovation, sub division

I started out in apartment refurbs (adding bathrooms/bedrooms) in melb mid to late 2000s and did many (to push the capital growth) and as everyone knows apartments don't go up but it was a way at that time to achieve that growth. At that time it was growths of 80-120K in a manner of months and not talking bank val, actual sales of the those apartments.

Secondly, there is opportunities in properties in the correct zone, like for eg. bruce st preston that sold for 2 mil for the permits it had - for like 400+sqm block. If you have property which has a permit for 6 townhouses, it would look attractive eitherway to a builder or a developer to purchase.

For sure, there is limited organic growth in Melbourne, places are becoming more exp - it would be looking further out or manufacturing the growth yourself.

 

Hi, I'm new to this so I don't really understand the garden requirement. About those properties over 650sqm, if you subdivide the property then does that 35% still apply? Does it mean regardless of your subdivision that 35% of garden cannot change and it cannot be used for development? Thanks.

 

Yes - After subdivision will require 35% on each of the new lots created. Can still be used for development but additional garden requirements have reduced value of many sites due to reduced no. of builds possible.

 

Thank you so much for clarifying on that!

 

I would just see it as more disadvantageous since for 650sqm (you're gonna pay more for the land but hit with more restriction for the bare creeping into 650sqm) it would be better to be within the range of 580-635sqm if you asked me as the garden requirement is 30%. Also with the neighbourhood zone and general res zone now basically the same (the only zone which is exempt from all of this is the res growth zone)

 

Is it still possible to get 3 houses on 1 on 650sqm? I have referred this onto my townplanner

Luckily I was in the process of getting 3 units in Reservoir on a smaller block before the new restrictions came in so still can get 3 x 2 bedroom units on 590 sqm!
Just goes to show that nothing is ever a given and to do the plans as soon as possible

 

There were ppl putting 6 on 650sqm though it maybe less now maybe 5. - for you block (with the 3) you should have gotten 4 on it instead of 3.

 

Looking at this week auction and reading - I don't think it has dropped in reza- when you got 271sqm units flying off at 748K for a 2 bedroom (I actually bid of a BALWYN unit for approx. config 2 bed and size for. the same price about 2 years ago) - still rough (but 9 bidders for this place is crazy) - the prices of smaller blocks still are going up

 

Assuming to build that house is $200K? So say the land is worth $548K / 271 = $2,022 make it say $1800-$2000 range, yes that's quite expensive.

Remember that Chinese bloke who purchased 25 Goulbourn Road which is the road right behind this one? Man when I think about it now thats a bargain. That was $880K / 650m2 = $1,350 psqm!! That was in March or April...

Whats with Rezza and the block bounded by Regent, Gilbert and Henty Streets? Seems a lot cheaper than near Oakhill despite being on the other side of the road and closer to the CBD.

 

Well 9 ppl went for that one - I didn't attend that auction went to a heidleberg West one (so many Chinese and Asian bidders). One of the underbidder was all the way from balwyn looking for an IP

I remember thinking those albert St ones off preston used to go for 500-600Kish were too ex 1.5 years ago now it is bang 770Kish

Gilbert St is meant to be really exp area (gilbank places were the first to touch 800-900k mark before the rest)

 

Really? Surprised man. TBH I feel as though the left side of Rezza opposite the Oakhill Estate represents better value. Close enough to use both train and trams....and $800K mark.

Case in point:

4 Moore Crescent, Reservoir, Vic 3073 - Property Details

$810K, 620m2. Excellent transport options...2 stations and possibly 1 tram.

I would have purchased!

Mind sharing what property you were looking at in HW? Mate in all honestly I wouldn't have bet on the Chinese going for HW? Kind of trashy, full of Housos, thought this was a no-no for the Chinese? Curious to see what it went for the on you looked at.

 

I went to this one. TBH I don't even know why the attraction to Heidelberg west. I go to a lot of auctions not necessarily to buy (but to see what is on the market). if you asked me 2 years ago this places were like sub 400K or even less - now it is 800Kish (like more than 100% growth). I looked at them but the suburb is so bad as in thrashy I never made a move back then. the growth in this surbub once considered the worst in Melbourne is crazy. the Asian couple laughing in the front made a few bids and the guy in the cap is from balwyn bid till 780-790K, there were others on the other side.

531 Waterdale Road Heidelberg West Vic 3081 - House for Sale #125339370 - realestate.com.au




I also met the Dept of Housing Comm exec sales guy again (who signs off contract of sales once it sold). he was saying yeah they're looking to build but not in the expensive suburbs further away( was trying to get clues as to which sites get selected for sale - he said it is a whole different dept called asset management handles the sites that are put for sale) depends on the gov that gets elected and the direction. ATM they're selling off and redeveloping a lot of sites in heidleberg west (but personally the next door neighbor where I parked my car looked like she was on ice the whole night) and reservoir looks like a walk in the park compared to Heidelberg west.

 

How much did that go for?

HW aint too bad, ever drove through Doveton? Damn that is ROUGH