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

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!

 

And to add to Ymans post, You are not going to find that list with your budget

 

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

 

OK, thanks. Will $650K budget change much or not really?

 

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.

 

That doesn't exist within your budget

 

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.

 

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.

 

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

 

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.

 

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.

 

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.

 

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!!

 

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.

 

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

 

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

 

Look at Melton, Melton South, Melton West and Kurunjang.

 

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.