VIC Investment prop in Melbourne region

Discussion in 'Where to Buy' started by mkbonline, 16th Oct, 2019.

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  1. mkbonline

    mkbonline Well-Known Member

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    Location:
    Kellyville, NSW
    Hi

    I brought PPOR in Kellyville,NSW last year in Dec and now looking for investment property. Looking for capital growth and also depreciation for tax benefits (as both myself and partner are in highest tax bracket).

    I am contemplating on buying a new house or land to build house in Melbourne region. Have been doing research on various suburbs but not able to zero down to something to a suburb- which will offer high growth long term.

    Looking for guidance and advise from experts here.

    Cheers
    MkB
     
    mkbonline, 16th Oct, 2019
    #1
  2. The Y-man

    The Y-man Moderator Staff Member

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    I'll probably be shot down for this but IMHO, making big CG on a new house is hellishly harder than doing it with a used one.

    The Y-man
     
    The Y-man, 16th Oct, 2019
    #2
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  3. mkbonline

    mkbonline Well-Known Member

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    Kellyville, NSW
    Okay. I will need to sacrifice depreciation benefits for an old property. What region/suburb should i focus on for CG growth? West or far east or north ?
     
    mkbonline, 16th Oct, 2019
    #3
  4. The Y-man

    The Y-man Moderator Staff Member

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    If you want max tax deductions and best growth prospects, I'd look at houses in the inner suburbs (my most recent purchases were in Acot Vale and Brunswick area).

    The Y-man
     
    The Y-man, 16th Oct, 2019
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  5. mkbonline

    mkbonline Well-Known Member

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    Thank you Y-man. Both these area seems to be on expensive side - $1.3m + for 3-4 bedroom house and very established suburbs. My current thinking is to invest in 2 properties over next 6 months - both around 600-700K mark and in growth suburbs which can help me build long term property portfolio as well as help me max tax deductions. I am almost 40 now and dont have any investment property. So late in the game :) Please correct me , if my plan sounds insane :)
     
    mkbonline, 17th Oct, 2019
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  6. The Y-man

    The Y-man Moderator Staff Member

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    600k~700k is what I see as a "hot market" where there are a lot of buyers due to affordability (FHB territory). We found that the upper part of the market is much cooler with fewer buyers - so allows for a lot more negotiation (i.e. wait for properties to be passed in at auction etc).

    So instead of 2 x 600k, I'd personally look at 1 x 1.2m.

    I'd personally avoid the "growing suburbs" as if I have understood your definition correctly, new houses are being built all the time - and you will have 1. renters with a lot of choice 2. your property will potentially not grow in value as it is getting diluted by new stock (no scarcity). Scarcity is what gives (percieved) value to a prop.

    Finally - have a good look around - as I said, there are potential bargains around. If the houses are $1.3m+ then I am a very happy person, as I paid under $1m only 3 years ago :D:D:D ~~ but I suspect there a deals if you keep you eyes out.


    The Y-man
     
    The Y-man, 17th Oct, 2019
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  7. The Y-man

    The Y-man Moderator Staff Member

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    The Y-man, 17th Oct, 2019
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  8. Mumbai

    Mumbai Well-Known Member

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    @The Y-man How is neighbouring Avondale Heights suburb as compared to Essendon, Maribyrnong, etc, for a PPOR?
     
    Mumbai, 17th Oct, 2019
    #8
  9. The Y-man

    The Y-man Moderator Staff Member

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    Sorry - no idea.... I haven't been to that area at all..... (other than drive on the Western ring)

    The Y-man
     
    The Y-man, 17th Oct, 2019
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  10. Westie

    Westie Well-Known Member

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    A former colleague of mine lives in AH and loves the area. Homes on big blocks, green area with parks, schools aren't bad, commute to the city can be a pain as you gotta go to Essendon/Sunshine for trains and the tram's a nightmare - is what he says..
     
    Westie, 17th Oct, 2019
    #10
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