VIC House in either geelong or Ballarat vs unit in frankston

Hi guys

I am looking to buy my first investment property.

My partner and I currently own a house in the outer East of Melbourne on 1000sqm and plan to to subdivide in the next 5-8 years ( still undecided because we quite like having a big backyard)

In the meantime we are looking to purchase a property to get is kick started,

We have a budget of about $45000,. At the momment I have being doing some research or homes in suburbs of Ballarat and suburbs of Geelong, i have also seen a few older units in frankston which fit the budget l, however I am abit weary of buying such an old unit on a small parcel of land and not being able to ever do anything with it..
If you guys could please give me your opinions on the above options it would be greatly appreciated.

I also realise that I have a whole lot more to research and learn, im just trying to get a grasp on which areas might be doing well

Thanks

 

All depends on whats up for sale and the location. But proximity to water is a strong demand driver.

Which area would you prefer to live in?

 

Hi Grant we spent $425k on a unit in Frankston outstanding location walking distance to PARC, Frankston Station, Chisolm TAFE and Bayside SC its also a short drive to Monash Uni & Frankston Hospital bus stops also walking distance as well. We had it rented out prior to even settling the property and this was in May of this year during COVID. I think the location helped our cause alot and the fact the unit was clean and not super dated. Its 2 Beds + 1 Baths @ $340pw. Hope you manage to find something. Cheers

 

The two options are different investment assets. One for yield and one for CG one might say.

What kind of financial gain are you after? Is it to finance the subdivision project?

 

Very unlikely to get a decent unit for $450k in Frank these days - the market has moved considerably over the past few months there - so unless you wanted a 2 bedder on very small land (c150sqm), it's best to look at regionals. I also looked at Geelong (before buying in Bendigo) but that market has also had a lot of gain in the past 12 months. If you could stretch out your budget by another $100k, you could get an old 2/ 3 bedder on considerable land (just under 600sqm) in some parts of Frank.