investing in melbourne

Discussion in 'Where to Buy' started by proptycoon, 28th Nov, 2015.

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  1. albanga

    albanga Well-Known Member

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    I have a friend who purchsed land in Point Cook around 3 years ago, turns out he couldn't build what he wanted and got stuck holding a money drainer. Sold it 2 years later for a 100k loss not including the holding costs.
    Another classic example of an uneducated purchase in an area where land is plentiful.
    I honestly think they need big stickers on these blocks of lands warning the potential problems, just like a pack of cigarettes :p.
     
    OC1 likes this.
  2. melbournian

    melbournian Well-Known Member

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    Had a similar friend who build for nearly 600k 4-5 years ago and then had to sell for less the price after he divorced. The thing with pt cook is it works well for 3x2x2 on smaller block as nobody builds. I build 4 there and sold 2 and kept 2 for rentals. It was above my build and hold cost. As the median is lower spec homes will not so well there.
     
  3. larrylarry

    larrylarry Well-Known Member

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    @melbournian do you think point Cook and surrounds are still good to look at? From looking at Google maps the areas like Werribee, truganina, point Cook are still very new with a lot of land. I'm keen on house and land but most advertised seem to have builders selected already.
     
  4. melbournian

    melbournian Well-Known Member

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    @larrylarry i think it is still value as I mentioned my tenant is looking to purchase hence if that goes through I will look at getting another block.
    Don't buy the block with the house included. Buy 300-350sqm empty land and search for a volume builder waiting for the discounts they normally have throughout the year. . You can shave possibly 30-50k by doing this and when it is valued at market price. My places are all in the featherbrook estate mainly as the developer has offices worldwide hence the reason I think why lots of Chinese own there due to their marketing overseas.
     
  5. larrylarry

    larrylarry Well-Known Member

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    Thanks. That's what @sash did in Officer and I guess I will save a bit more on stamp duty. So do you just search for land in re.com?
     
  6. melbournian

    melbournian Well-Known Member

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    @larrylarry when i did mine. i bought 4 altogether so i negotiated a bigger discount straight from the developer. If you buy from re. they're titled already so you would be paying interest on empty land. better to go with the developer and have time 1.5 years before it gets titled to search for a builder as it only settles when it titled.(sometimes they got really good specials from volume builders). It's no different to searching for a LED TV best price in harvey norman, jb hifi etc. Yeah i realize sash was doing the same approach as me.
     
  7. dabbler

    dabbler Well-Known Member

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    There is always a premium to be added to any vacant land with no services & plenty of people like to be near stations, shops etc etc

    So not so simple.
     
  8. larrylarry

    larrylarry Well-Known Member

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    I think I will give my brain a rest and look at Melbourne specifically afresh after my holidays. Happy holidays people!
     
  9. pdp

    pdp Member

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    Check out further east of Melb, 2 bedroom units in and around Bayster within a small complex of 2-4 units with room to increase equity thorugh minor renovations.
     
  10. sash

    sash Well-Known Member

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    Just an update on the Officer numbers. Just nailed a builder for the lot.

    The numbers are looking really good.

    @melbournian - I just got a quote of 168k for a 17 sqm fully complete from a young bloke who is really cluey from Dennis Familty homes.

    The cost are as follows:

    1. Cost of build including driveway, flooring, cooling, stone benchtops, NBN provision, 900 appliances, 20 downlights, etc is $168k
    2. Land cost 144k
    3. Landscaping/fencing 5k (very small block)

    So total cost $317k for a fully complete home in Officer. Have a look what new homes are selling for there. You won't get much change out of $350k and that is without all the inclusions. You will probably need about 370k to fully complete for 3x2x2.

    SO there is about 18-20% profit in it. Happy with that. I am expecting it to rent for 340-370pw.
     
  11. melbournian

    melbournian Well-Known Member

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    Looks good mate glad Dennis homes was able to accommodate. I haven't got any land plots to develop yet. Still weighing up my options.
     
  12. Switchtronics

    Switchtronics Well-Known Member

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    Nice pick up mate. Is this your first in Officer.
     
  13. TMNT

    TMNT Well-Known Member

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    Nice!!!

    I got a similar quote a few years ago in point cook as well.

    However i tried to get similar prices in qld and i basicallt got laughed at.

    Is 168k or thereabouts a melb only price?
     
  14. sash

    sash Well-Known Member

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    Yes it is.
     
  15. sash

    sash Well-Known Member

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    Yes...it is Melbourne only.

    Can't get even close to that in other states. Qld is bloody expensive.
     
  16. D.T.

    D.T. Specialist Property Manager Business Member

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    I'd be concerned with the supply there - Real Estate & Property For Rent in Officer, VIC 3809 (Page 1) - realestate.com.au
    There's 34 places for rent in what seems like a smallish area. Most of them at first glance appear to be newish builds aiming to undercut each other. I don't know the area at all so I defer to your research.
     
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  17. JacM

    JacM VIC Buyer's Agent - Melbourne, Geelong, Ballarat Business Member

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    The problem with Point Cook wasn't necessarily that the west has more land to offer. It was that they talked it up as through it was somehow fancyville, and people fell for it. A golf-course wow! People got silly and overpaid.
     
  18. sash

    sash Well-Known Member

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    Yes there a quite a few....but it is after Xmas and a lot of builders would have tried to get people to have their handovers done just before Xmas. This is what happened to my Armstrong creek property. But now is is rented for 380pw.

    I am reasonably certain I will get 340-360pw rent based on my spec.

    I have targeted a downsizer market ....this is probably also the demographic I will sell to. They are looking with homes with all the mod cons.

    The courtyard is only 2.5m x 13. deep and the side yard is 2 x 15.

    There is a park adjoining...thus ....they have an open area on their door step.

    My research shows these type of homes will be extremely popular over the next 20 years as people downsize to functional single storey homes near good infrastructure. A town centre is being built and the amenities will be with a reasonable walking distance.
     
  19. Truly Exotic

    Truly Exotic Well-Known Member

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    I worked in point cook un 2010 to 11

    Being completely objective. I didn't mind it. Sure you have heaps of land and Mc mansions. But they were all newish. Looked designer and we're fine.

    It was and still is a nightmare to get into town during peak. And it s still got the slight Bogan feeling to the shops and people there but being close to the city. But i think that a few small tweaks such as bigger or better road. A bit of land tightening. A few more classier shops and restaurants the place will become the premium suburb of the west if not already
     
  20. dabbler

    dabbler Well-Known Member

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    Agree, Point Cook is nice, but, getting in and out seems to take a long time.

    Also, what is all that stuff near the bay ? part dredging ? marsh area ? It was near dark when I say it, bit of an eyesore if you just build with that as your view...

    Is the whole area been filled in to build on ?
     
    Last edited: 10th Jan, 2016

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