Inner/Mid East - Ashwood, Chadstone, Oakleigh, Hughesdale?

Discussion in 'Where to Buy' started by PeterProperty, 19th Aug, 2020.

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

    PeterProperty Active Member

    Joined:
    14th Dec, 2016
    Posts:
    44
    Location:
    Melbourne
    Hey everyone,

    We're thinking of purchasing an investment property in the inner/mid east of Melbourne.
    We're thinking of the following areas:
    Ashwood
    Chadstone
    Oakleigh
    Hughesdale
    Huntingdale


    Budget: ~$1.0/$1.1m
    Strategy: Purchase a dated/original 3 bedroom house, rent out for 1 or 2 years, then renovate (and maybe extend) and continue renting out for the long term.

    What are your views for which suburb above (or other Eastern suburbs) you believe would be a better selection choice?
    For capital growth over the long term?

    Any there any pockets you're aware of that are most desirable in these areas?
    Or pockets to avoid?


    I've read Ashwood has some housing commission (or ex-housing commission?) streets, but I'm unsure which ones?

    Thanks again,
    Peter
     
  2. Bruce36

    Bruce36 Active Member

    Joined:
    28th Sep, 2016
    Posts:
    41
    Location:
    Melbourne
    Similar to Ashwood, Chadstone also has some not so nice streets, they back onto the large 'Home' complex of Harvey Norman / Office Works / Bunnings and extend east to Power Street. The Chadstone Shopping Centre and Jordanville Station pockets are however quite nice and you'll note that in sale history for the suburb.

    If you're seeking land you may find your budget is insufficient for Oakleigh, the suburb has really come a long way with its premium station + buoyant cafe and restaurant district. Hughesdale is closer into the city and definitely pushing outside that budget. Huntingdale is doable, has some cheaper pockets near the station (due to commercial zoning nearby).

    In terms of Capital Growth, and purely in my personal view, assuming you can afford to buy in all, i'd go Hudgesdale > Oakleigh > with Ashwood Chadstone and Huntingdale being on par.
     
    segue and PeterProperty like this.
  3. kaibo

    kaibo Well-Known Member

    Joined:
    30th Jul, 2017
    Posts:
    624
    Location:
    Melbourne
    at that budget all about school zones for yield and CG
     
    PeterProperty likes this.
  4. PeterProperty

    PeterProperty Active Member

    Joined:
    14th Dec, 2016
    Posts:
    44
    Location:
    Melbourne
    Thanks so much Bruce36. Awesome response - thank you for taking the time. Are there any other good amenities near Jordanville station pocket?

    For our budget, do you have any other suburbs suggestions?
     
  5. Robbo80

    Robbo80 Well-Known Member

    Joined:
    21st May, 2018
    Posts:
    586
    Location:
    Vic
    There is only a private golf course near jordanville. Nearest decent cafes/shops would be at mt waverley station which is like a 15-20min walk away with some nice streets in between.

    279 high street looks decent. Although a main road it not busy at night hardly a car at all even precovid, overlooks rolling hills of golf course, some really nice new homes being built on the street. But it is far from shops (but things can improve as there are small strips nearby - just lacking any decent cafes/shops at present). Walkable to station. Not sure what school zone but if mt waverley then its a plus.


    You could also check out burwood, north of burwood hwy near deakin uni (earmarked station somewhere around there in 2050! :p). 3 kilstyh - try lowball that. It is a very tightly held pocket. Good for student rooming if uni bounces back.

    Saw a few decent blocks in parkdale but theyve gone underoffer.

    Good luck and let us know how you go!
     
    segue and PeterProperty like this.
  6. Bruce36

    Bruce36 Active Member

    Joined:
    28th Sep, 2016
    Posts:
    41
    Location:
    Melbourne
    The real attraction to the Jordanville pocket is simply the ability to walk to a train station, this is naturally always in strong demand for obvious reasons. With respect to amenity I don't believe this pocket is any more superior to the others (i.e. Warrigal Road end near the Shopping Centre).

    With your budget you should be able to buy an old house on a block of approx 600m2 land in Chadstone / Ashwood or Huntingdale. As mentioned above Burwood is nice however due to the Deakin Uni and Mount Waverley SC affiliation its more expensive and in my view slightly over saturated with developments (if that's your mid-long term game). You'll find suburbs further out, i.e. Mount Waverley and Glen Waverley spike due to the schools and so with respect to proximity to City you've likely found the sweet spot.
     
    PeterProperty likes this.
  7. PeterProperty

    PeterProperty Active Member

    Joined:
    14th Dec, 2016
    Posts:
    44
    Location:
    Melbourne
    Thanks so much for this. I actually like 3 Kilstyh. That's probably the exact property we have in our mind. 3 bed, 1 bath, original. Scope to make it nice again.

    What are your thoughts on Parkdale? How would you say it compares to capital growth prospects in Hughesdale/Oakleigh/Burwood?
     
    Robbo80 likes this.
  8. PeterProperty

    PeterProperty Active Member

    Joined:
    14th Dec, 2016
    Posts:
    44
    Location:
    Melbourne
    That's great - thanks so much for your great response.
     
  9. kaibo

    kaibo Well-Known Member

    Joined:
    30th Jul, 2017
    Posts:
    624
    Location:
    Melbourne
    For me as smack bang in the middle of Belgrave/Lilydale line and Glen Waverley train line and not close to any (over 3km), Goes for Monash freeway and Eastern Freeway as well. Also Mount Waverley school zone seems to be slipping with results and reputation as well (Definitely more highly regarded back in the 90's)

    Massive suburb as starts from Warrigal Rd (other side is Camberwell) and some pockets around there are very nice
     
    Robbo80 likes this.
  10. Robbo80

    Robbo80 Well-Known Member

    Joined:
    21st May, 2018
    Posts:
    586
    Location:
    Vic
    I personally love it. Still affordable and ticks all boxes: top schools, train, parks, village vibe and beach all within walking distance.

    Only con it is a tad further out and stay away from the moorabbin flight path but cant think of any other surburb offering the same under $1.1m.

    Mentone and Mordialloc look great too but dont see much in that range.
     
  11. Robbo80

    Robbo80 Well-Known Member

    Joined:
    21st May, 2018
    Posts:
    586
    Location:
    Vic
    You could argue those areas that currently lack infra near social hubs like Deakin and Monash will be first in line for future metro stations. This could give it great upside as it is vastly cheaper than neighbouring suburbs.

    The 2050 suburban rail loop has already earmarked such stations if it goes ahead :p.

    In meantime youve got the potential gentrification and liveliness that proximity to a growing uni can bring. Not to mention the ability to rent out single rooms for $200 a pop :)
     
    kaibo likes this.
  12. craigc

    craigc Well-Known Member

    Joined:
    25th Jun, 2016
    Posts:
    1,576
    Location:
    Melbourne
    Salisbury Rd would be ex-houso but around the area you can see the gentrification happening as high-end townhouses slowly working their way closer to the train line & this area.
     
  13. Jim G

    Jim G Well-Known Member

    Joined:
    15th Mar, 2020
    Posts:
    63
    Location:
    Melbourne
    I would say Oakleigh South (within the highly prestigious and state top ranking Oakleigh South primary school zone) would give you the best value in the burbs that you have listed. Try to get within these perimeter - Golf Road, Berryl Avenye/Delia St, Warrigal, Picadilly St. This is the most sought after pocket of Oakleigh South. Walking distance to Links mall (Woolies/Bunnings/AusPost/Hair dresser etc.). Two bus routes to Oakleigh station and Huntingdale station. Also, a short 15 mins walk to station in good sunny weather.
     
    PeterProperty likes this.
  14. Robbo80

    Robbo80 Well-Known Member

    Joined:
    21st May, 2018
    Posts:
    586
    Location:
    Vic
    Nice one. You seem to know your areas well. Still interested to see what your second and third choice would be if nothing comes up for sale in that area if you are generous enough to share?
     
  15. Jim G

    Jim G Well-Known Member

    Joined:
    15th Mar, 2020
    Posts:
    63
    Location:
    Melbourne
    Sure...If I have to look only within the areas mentioned on this thread (Ashwood, Chadstone, Oakleigh, Hughesdale) then the order of other options would be as stated below (with my reasoning ofcourse). Happy for your inputs as well on these.

    Option 1 - Oakleigh South Primary/Secondary school Zone
    Reason - Best public primary school in the state, Lots of greenery and fresh air (with golf course and parks), Walking distance to Supermarkets (Woolies, Bunnings) and other amenities (AusPost, COnvenience stores, Cafes, Car wash), easy access to North Road, Centre Road, Princess Highway), Short walk (15-20 mins) to Oakleigh station - also 2 bus routes.

    Option 2 - Oakleigh
    Reason - The lively Oakleigh Central and Eaton mall with more cafes and restaurants than you can imagine. All that you need to hang out with family and friends. Good private school is there (Oakleigh grammar) but no great public schools. Less than 5-10 mins to train station (Not that it is of any help in the new normal when most will continue working from home post COVID).

    Option 3 - Hughesdale
    Reason - Very nice and peaceful neighbourhoods and easy access to the Oakleigh cafe strip.No great public schools but could be a good choice if you do not have kids at a school going age.

    Option 4 - Ashwood
    Reason - Beautiful neighbourhood but lack of good public transport, lack of good public schools. Close to Chadstone so you tend to feel the hustle and bustle of busy chadstone traffic at times.

    Option 5 - Chadstone
    Reason - If you are one who wants to hang out at shopping mall then no better place than this. Other than that I do not see any great benefit (besides very very quick access to M1). I feel that post COVID the reason to access M1 on a daily basis or going to shopping mall every weekend will cease to exist as most of the work and shopping will be done remotely as people get used to the new normal.

    Happy to hear what others think and would always be keen to learn more with insights for others living in these suburbs.