VIC House in Melbourne (IP) Budget $550K - where to look

Discussion in 'Where to Buy' started by OMG_itsabargain, 7th Jan, 2019.

Join Australia's most dynamic and respected property investment community
  1. OMG_itsabargain

    OMG_itsabargain Member

    Joined:
    20th Dec, 2016
    Posts:
    14
    Location:
    Sydney
    Hi All,

    I have seen few similar threads before, however now me and wife determined to invest in the next 3-6 months and would really appreciate your inputs as to what suburbs we should look at. We will go with a BA eventually, most likely Empower Wealth, but at this stage wanted to do a research ourselves first. We are Sydney based, so not very much familiar with Melbourne yet.


    Has to be a detached house in Melbourne/near Melbourne
    Excellent capital growth potential, can be at the cost of lower rental yields
    Top purchase price of $550K
    Good access to public transport
    Good socioeconomic situation in the suburb

    Also what are the qualities of the house we should look at, such as minimum number of bedrooms, age of the house, land size etc.

    Thanks all, your inputs are highly appreciated!
     
  2. The Y-man

    The Y-man Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    3,584
    Location:
    Melbourne
    I personally wouldn't try that combo in Melbourne at the moment - despite all the news of a crash, that's still a pretty hotly contested price segment of the market IMHO.

    The Y-man
     
  3. MC1

    MC1 Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    93
    Location:
    Melbourne
    And to add to Ymans post, You are not going to find that list with your budget
     
  4. astonma

    astonma Well-Known Member

    Joined:
    20th Jun, 2018
    Posts:
    56
    Location:
    Melbourne
    perhaps glenroy to the north (would have been difficult 6 months ago but definitely possible getting a stand alone there now), going further out broadmeadows but socio economics not great but improving. Reservoir at a real real squeeze, if not there then go north from Reservoir. Sunshine area to the west, in as far as sunshine west potentially, and lower down staying in the West perhaps Laverton outwards. Not sure about east, but you'd be going way way way out wide for $550k stand alone. Just saying these are the areas to look at given budget, not with reference to any of your other points

    As Y-man says this section of the market is still pretty robust in Melb because it's prime first home buyer budget, FHB are basically the only group active at the moment. Especially this price band given complete stamp duty concessions for first home buyer in Vic if under $600k
     
    albanga likes this.
  5. OMG_itsabargain

    OMG_itsabargain Member

    Joined:
    20th Dec, 2016
    Posts:
    14
    Location:
    Sydney
    OK, thanks. Will $650K budget change much or not really?
     
  6. astonma

    astonma Well-Known Member

    Joined:
    20th Jun, 2018
    Posts:
    56
    Location:
    Melbourne
    Would make it alot easier getting something in the areas ive mentioned if you topped up your budget, but $650k wont mean you can come much closer in to the CBD than what i have mentioned if looking for stand alone.
     
  7. Cimbom

    Cimbom Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    1,373
    Location:
    Back in Canberra!
    That doesn't exist within your budget
     
  8. OMG_itsabargain

    OMG_itsabargain Member

    Joined:
    20th Dec, 2016
    Posts:
    14
    Location:
    Sydney
    Thank you Astonma! We will have a closer look at the areas you have mentioned and will explore our opportunities in buying $650K-$700K house. We can afford this price tag as well, just was not sure if we need to go as high as $700K+ or we could find something decent (capital growth wise) in the mid $500K range.
     
  9. OMG_itsabargain

    OMG_itsabargain Member

    Joined:
    20th Dec, 2016
    Posts:
    14
    Location:
    Sydney
    Thanks, thats great to know too :) I will crunch the numbers to see how high we can go, since $550K does seem to be enough for what we wanted.
     
  10. The Y-man

    The Y-man Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    3,584
    Location:
    Melbourne
    I think you will see form the other threads that the real "pain points" for vendors is in the $1m+ range - particularly inner subs.

    Like Syd, when we start talking inner, it's common to also find terraces, so your requirements for a completely detached becomes harder.

    Further out, that sort of money starts getting you a look into the subs like Doncaster, and parts of Glen Waverley for instance, but I say stay true to your parameter regarding public transport for good CG - in eastern half of Melb that means trains or smartbus.

    The Y-man
     
  11. David Shih

    David Shih Mortgage Broker Business Member

    Joined:
    21st Jun, 2015
    Posts:
    760
    Location:
    Sydney
    Can I throw in a curve ball here....why does it have to be in Melbourne? How about Geelong?

    $550K can net you a house on a decent block in Belmont or with a bit of luck Highton, with good schools and literally next door to Geelong CBD where employment has been improving as more and more businesses move into Geelong.

    Ticks your boxes about purchase price, good access to public transport (buses or South Geelong train station) and these suburbs have great family vibe, cafe culture and only minutes away from Geelong CBD. Definitely not low socioeconomic.

    You will likely get a bit better yield than Melbourne but depending on the deal itself.

    To me that may be a better long term investment given Melbourne is still trending downwards while Geelong is steady due to affordability.

    Cheers,
    David
     
    Toon, Marg4000, Dave3214 and 2 others like this.
  12. Tony66

    Tony66 Well-Known Member

    Joined:
    3rd Dec, 2015
    Posts:
    113
    Location:
    Vic
    I have paid a deposit to a H&L project in Upper Point Cook last year, which is going to be titled soon. It was for a PPOR but now I want to move away due to better job prospects elsewhere and thinking of selling off for the contract price.
    Not sure whether it is the right area.
     
  13. albanga

    albanga Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    1,755
    Location:
    Melbourne
    As others have said your initial post doesn’t really exist. That being growth, good public transport, socioeconomic and land on a 550k budget.

    Your best bet is North West > West. Do note though that that market is showing some resilience to the current market conditions so I wouldn’t expect an absolute steal.
    If you read any of my posts you will see I’m a huge advocate for St.Albans/Sunshine as this is going to be the pillar of the West.
    Even if you lifted your budget these are the areas I would stay in but obviously tick more of your boxes. So for example if you lifted it to say 650k you could get a bigger block closer to transport.
     
  14. johnmteliza

    johnmteliza Well-Known Member

    Joined:
    28th Aug, 2018
    Posts:
    238
    Location:
    Mornington
    Due to your post saying Melbourne or near Melbourne I would recommend the Mornington Peninsula, Frankston or Phillip Island. These areas are set to change significantly due to future infrastructure and demographic changes.

    In Victoria smaller regional satellite cities/regions seems to be where all the action is due to affordability and a change in what buyers value. Also, costal holiday markets have continually achieved greater capital growth in the past compared to regional towns.
     
  15. fat cactus

    fat cactus Active Member

    Joined:
    3rd Oct, 2016
    Posts:
    38
    Location:
    NSW
    Hi John,

    What would you recommend the OP be looking for within their budget? What sort of properties and areas to achieve their goals of CG with yield not being priority? Im largely interested for myself!!
     
  16. johnmteliza

    johnmteliza Well-Known Member

    Joined:
    28th Aug, 2018
    Posts:
    238
    Location:
    Mornington
    For optimal capital growth the more premium suburbs continue to be the most promising. With a budget of $550k - $650k detached houses can be bought on the Mornington Peninsula. The Port Phillip bay side of the Mornington Peninsula which is the most built up has the best accessibility in terms of transport infrastructure. This side also generally has a better socio-economic status with the most schools.

    Mornington Peninsula:
    Mornington:
    12 Bayview Road, Mornington, Vic 3931
    9 Berry Close, Mornington, Vic 3931
    55 Separation Street, Mornington, Vic 3931
    53 Carramar Street, Mornington, Vic 3931
    30 Narambi Road, Mornington, Vic 3931
    132 Maxwell Street, Mornington, Vic 3931
    48 Wandella Road, Mornington, Vic 3931

    Mt Eliza:
    2 Petrel Close, Mount Eliza, Vic 3930
    30 Koetong Parade, Mount Eliza, Vic 3930
    29 Mountain View Road, Mount Eliza, Vic 3930
    129 Wooralla Drive, Mount Eliza, Vic 3930

    Mt Martha:
    190 Osborne Drive, Mount Martha, Vic 3934
    28 Meadow Crest Circuit, Mount Martha, Vic 3934
    3 Gurners Lane, Mount Martha, Vic 3934
    27 Elspeth Circuit, Mount Martha, Vic 3934

    Frankston South:
    35 Leslie Street, Frankston South, Vic 3199
    2 Palma Court, Frankston South, Vic 3199
    59 Humphries Road, Frankston South, Vic 3199
    19 Genista Street, Frankston South, Vic 3199
    1 Maretimo Court, Frankston South, Vic 3199
    101B Casuarina Drive, Frankston South, Vic 3199

    Martha Cove/Safety Beach:
    32 Davies Street, Safety Beach, Vic 3936
    23 Brian Street, Safety Beach, Vic 3936
    47 Nepean Highway, Safety Beach, Vic 3936

    The new Martha Cove shopping and dinning development/village is set to increase the appeal of the area in the future.

    In Phillip Island San Remo/Newhaven and Cowes are the best options and properties within this price bracket are for sale. As mentioned by others this price bracket is open to a large variety of buyers and some of the properties listed have recently gone under offer.
     
    Last edited: 12th Jan, 2019
    fat cactus likes this.
  17. Otie

    Otie Well-Known Member

    Joined:
    26th Mar, 2016
    Posts:
    1,331
    Location:
    Vic
    I don’t think you’ll get anything for anywhere near 550k in Glenroy.
    In 2016 detached dumps of houses we’re bringing 550k, I haven’t looked at Glenroy for about a year but I think they’d be pushing $750+ on any block over 600m
     
    MikeyBallarat likes this.
  18. astonma

    astonma Well-Known Member

    Joined:
    20th Jun, 2018
    Posts:
    56
    Location:
    Melbourne
    Agree with what you are saying about 600m blocks, the OP didn’t mention anything about land size requirements or that it had to be on its own block so what I’m referring to is more original house on block that’s been subdivided. I saw a couple like this sell for high 400’s just before Xmas
     
  19. David200067

    David200067 New Member

    Joined:
    5th Jan, 2019
    Posts:
    3
    Location:
    Melton
    Look at Melton, Melton South, Melton West and Kurunjang.
     
  20. JamesP

    JamesP Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    132
    Location:
    Melbourne
    The only place I would buy in Melbourne is nowhere. But besides that Berwick Views estate in Beaconsfield never moved for some reason. Houses were low 600's pre boom and are now low 700's.

    Even stupid places like Nar Nar Goon and Tynong moved considerably. That particular Beaconsfield estate appears to be lost in time.