VIC Investment property , Clyde North or Tarneit ?

Hi ,
I have been planning to buy an investment property over the past few months and finally got the Finance sorted. So far , I've found 2 good offers, in Tarneit and Clyde North.
my budget for H&L will be $500k. Clyde North is about $25 k over.
I thought Clyde north is a good suburb to invest , with good captain growth but the vacancy rate is over 3.80%, where as Tarneit is 1.83% . Rental yield is the same.

I am bit confused which one to choose ?
Can someone suggest which one would be the good choice (Start up ), to grow a property portfolio ?

 

I am no expert by no means. Just about to settle my 1st IP in a couple of weeks.

Although I would like to know why you want to invest in H&L packages in Melbourne with current situation? I might be wrong but most of the advise I am getting suggests not to do this.

 

Hi Austin,
Well its not exactly H&L Package.. i am buying a block of Land privately and Building a house to rent it . The bank considers Rental as an income so it allows me to stretch my loan serviceability. I am hoping to hold my investment properties at least for the next 5 years and build a portfolio, with a mixture of Negatively geared and positive cash Flow properties.

 

Where did you buy your IP ? are you building a house on your block ?
I hope you didnt have any issues with Valuation.

 

OK. Just adding my 2 cents though... you might not be able to get any CG on this property for the next 5 years so make sure your plan of building a portfolio doesn't factor using equity gains out of this IP.

 

PM'd you.

 

probably not the market to buy a land and build in Clyde north not sure about Tarneit.
I have an investment in Clyde north purchased 2 years ago, which has increased almost 40% in 1.5 years and hasn't grown much in the last 6 months. But with the FHB push i still believe Clyde will push along in terms of CG at a slower rate over the next few years.
But main issue is finding tenants, it is hard due to so much options in the area and most tenant looking for rentals are people building their own place so turn around of tenants is very high.

If the proposed Clyde station is build(dont know when) that will significantly drive CG in the area.

 

Similar story in Tarneit as well, There is a proposal for "Tarneit North station " and outer metropolitan Ring road which will connect Wyndham - Melton - Tullamarine - Mickleham.
Not sure when these will be constructed.

Agree with your point - " Hard to find Tenants due to so much options "
that's why the vacancy rate is relatively high compared to some other areas.

 

Hi evertrust, have you made your decision yet? I'm also looking to buy in Clyde North within walking distance to the town center in Berwick Waters near Hilcrest. The size of the town center is meant to be around the same size as Eden Rise. Did you know that they are also developing Minta farm in Berwick on Soliders Rd, Stockland bought 114 hectares for around $200 million last year and the proposed construction date is late 2019 or 2020. Minta farm is actually in Berwick so will be super expensive though! The area is growing rapidly, imagine how big it will be in 5-10 years time. I heard today that they have had 3000 enquirers so far and they are not even releasing land yet. I also heard they are building a sky train in Cranbourne/Clyde but I can't find much info on that. Another thing I heard is that they may eventually add another entry/exit onto the Monash further down past Clyde rd, although I'm sure that is decades away!

 

Hi Chrystee, see answers below I am a local resident in the area.

I am one of the 3000, i live on Kingsmere estate bordering Minta farm, was looking at buying a land.

Funding is approved as part of Monash stage 2 upgrades clyde road to Pakenham. plans have been approved for building of O'shea road entrance and exit ramp to begin next year.

There are no plans for a skyrail to Cranbourne, which ever government comes into power the duplication of tracks between Dandenong to Cranboune will start. High speed signalling will go in 2022 together with HCMT trains, which will increase capacity on the Cranbourne line. Liberals have pledged to extend the line to Clyde.

 

Great thanks for the info

 

Hi

Don't forget at least 40% of those won't get finance! On another note sales people that are selling land in Cranbourne/Clyde/Clyde North areas are now ringing me back, sending SMS, leaving voicemails and emails after what must be 2 or 3 years (better late than never!) after making my last enquiries so that could indicate that a downturn has begun in those areas.

Regards,

alicudi

 

Hi mate where did you end up investing?I’m already halfway through my building in Tarneit as I had looked elsewhere but eventually we made our decision.i value a lot of the knowledge from this forum and only wish I had came across this with our first home.anyways it’s helped us a lot now especially with our IP

 

Definitely neither. But if I'd have to pick one I'd pick Clyde North. In 10 years there will be more estates behind it. And the West will still be more or less the same in terms of livability and desirability.

I'd probably look at Geelong if I was buying now. Then places like Hampton Park and Dandenong before Clyde. But those have the same problem as Tarneit and will take a long time to become desirable.

 

Funny enough I was looking in geelong or Brisbane as my next ip,but at this stage will see how this one pans out first but be on a look out soon

 

I am not sure what desirabilty means but the same sentiments are why people ignored footscray and yarraville until they were too hot for the common man to afford.
Tarneit is 25mins to the city via train, while clydenorth is more than 90mins.
in terms of CG they have both done equally well in the last 3 years and Tarneit has better prospects for the future according to Core Logic
am not saying to buy in Tarneit, but am just cautioning against writting it off bcoz of bad press

 

Same as cranbourne, until a few years ago, it used to be the go to place for people with low budgets and wanting new.

Now this area has shook off that stigma and isnt cheap