Hello - Looking to learn more about investing in Melbourne

Hello all,

Newbie to investing and have started reading content on PC. Great resource / tool.

Have been in Melbourne for ~7 years and currently in my PPOR for the last 3 years. Looking for options / ideas around investing for renovation / development around AUD 700 K mark (can hold the property for 12-24 months before wanting to sell / sub divide with plans).

My wife and I work full time and do have a combined total > 200 K / year in income plus a saving (currently in offset) in excess of AUD 200 K. Monthly exp ~ 4 K & we do not have any other debts (just 1 CC, which we share).

I have been looking at suburbs like Epping, Mitcham, Ringwood, Springvale, St Albans, Thomastown, Sunshine, Clayton to start with and find properties which have good potential and closer to stations.

Thank you

 

Thank you Rolf, will sure do so.

 

Thanks Y-man, yes, it is a big list and I am trying to cut down to a couple of options. I have seen a few in St Albans and I'm inclined but unsure if this is a good start. So, doing a bit more research.

 

Welcome @Vishal Sanghvi - and keep well!

 

Pick an area.
Do lots of inspections and chat to agents.
Make notes about each inspection and chase up sales details.
After a few weeks you will have an idea whether there is good buying in the area and what that looks like.

 

Look at what is selling, what is sold, and what the prices are. Compare features to see what the market values. Break it down suburb by suburb. Then look for deals you can develop.

 

Hello all,

I thought it's bee na year since my post and I wanted to provide an update to probably get some more ideas off the experts.

So, my stratgey pivoted a bit and this is what I have done till date:

a. IP1 - Bought a parcel of land (336 sq.m) in Tarneit and am constructing a 22 sq. home on this, which is near completion. Probably would hold on to this for some time.

b. IP2 - Good a real good bargain on another block of land (350 sq.m) in Thornhill Park (3 of us bought together). Land titles in Oct 2021.

c. IP3 - Last week, I booked another block of land (400 sq.m) in Donnybrook. Not the cheapest ones, but is a foot in the door in the N-W corridor of Melbourne. Titles Q1 2023

Questions:

a. On IP2 (land), I potentially can sell it with a profit of 70-80K (before GST) - should I choose to build on this or sell the parcel of land and raise some capital?

b. IP3 (once built with a single storey 24-25 sq home) will cost me over 600 K, again, should I just raise capital by selling this block

c. What strategy should I follow if I'd not be burdened with loans but still keep making money via selling land - sell after one titles. or buy and hold a titles land or something else? I cannot claim any interest deduction on land alone and hence, lesser tax savings.

d. Would looking at est. homes with bigger parcels of land (once some capital is rasied) a better long term investment?

(Apologies if some of these questions should be directed to someone very specific outside this forum)

Thanks
Vishal

 

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Thank you Y-man

 

Is this 80k profit split between the 3 of you, or do you each get that?

I just recently flipped land which I was going to build on. Reason- building costs have gone up so the numbers didn’t work anymore. If I were you, I’d crunch all the numbers and see what works out better.

 

This would be individually. All get upto 80K if we choose to do so.

Yes, I agree the construction costs have gone up. I'll work out the numbers and see what is beneficial. If I build, I may end up holding it though.

Thanks