Hi from Melbourne FHB, maybe

Hi all, am new to the housing market so learning as I go.

First question: how negotiable are house-land packages on the city fringe? I can understand they would price alongside the established market so at the moment $500+ is advertised for anything that doesn't resemble a unit. That's 50km from the city in the SE! My current strategy is to wait but I'm not sure if that's a mistake and I should be chasing the builders. $300K for 400m blocks in the middle of nowhere when construction is contracting smacks of unbridled greed to me and I won't be touching it.

Cheers

 

This tells me you should redo your mindset. More objectivity, less emotion. Your probably starting to look after watching it boom for a few years, thinking its falling, but frustrated that its stilll not cheap enough for you to buy something you like?

What does greed have to do with it? You either think its worth it or not. You might be right or you might be wrong.

You will only buy from someone who doesnt want top price? How does that even make sense?

 

That "top price" is fine for them if the buyers are willing to take it. If I go the market and the bananas are $7 a kilo and nobody is buying any then it's not the buyers who have to reevaluate their plan. I just saw a news article on ABC's midday news that construction is expected to fall at least for the coming months because buyers aren't biting. It's their land and they can slap whatever price they want on it - go nuts put $1mill on it if buyers stay away they must have emotional problems.

 

You've missed the big time boom we just had. If I were you and looking at getting into the market, look at established 'burbs that fit into your budget. For $500k, you'd get into the Werribee/Point Cook/Deer Park/Albanvale/Sunbury/Diggers sorta area with change to spare in most of these areas. You'd get bigger blocks too with the potential to add value in a few years.

 

Thanks Westie also outer south east similar prices. I think a wait strategy is wise at this point certainly no price spike in this near term outlook.

 

Yes Y-man I've started to touch base with a few package providers so am about to find out. I'm suspecting not negotiable enough for my liking.

 

How's this one Westie, wrong side of town for me but 425m block $200K neg. in Wyndham Vale. Negotiable obviously means under 200. That's 30km from the CBD. (basically Werribee)

Discount Premium Parkview Land-Mambourin Estate | Land For Sale | Gumtree Australia Wyndham Area - Wyndham Vale | 1214854334

I'd like to see that our my way.

 

I wouldn't do a H&L package in a falling market. You run the significant risk of the bank val coming in lower than your package's price and you having to cough up the rest. Why not consider an established house within walking distance to a train station? Also, is this to live in or invest?

 

To live in. Because of the risk you highlight I would only consider a new build if the land is priced at pre boom prices (recent boom 15-17). I'm figuring that the build price will be fairly stable even through a real estate fall as time and materials won't drop much.

Using onthehouse.com I've seen property first sale prices of $180,000, mid-size blocks, in Pakenham, in 2017! Onthehouse doesn't state but that's obviously the land sale. Now the developers are advertising $300K for the new blocks in Clyde/Officer.

 

Fair enough mate. I'd still consider an established house in an established suburb, that way you don't have to worry about the val and all, unless you want something bright, shiny and new.