VIC Investment property - Melbourne - Footscray

Hi

I am looking for my first investment in Melbourne.

My budget is around 450k and I am looking for good rental yields combined with decent capital growth.

My criteria is it had to be near transport.

I was looking at Outer west Melbourne suburbs such as

St. Albans
Point Cook
Hoppers Crossing etc

But what caught my attention is Footscray. Seems the suburb is gentrifying.

What are your thoughts of buying investment property in Footscray/West Footscray in 2019?

Thanks

 

Like Footscray as an investment, proximity to city, transport, becoming trendy slowly, plenty of positives.
However, with a 450k budget I fear the product you will be buying, appartments, are both in oversupply and in Footscray there is a lot of higher density developments and development sites that in my opinion will keep a lid on both capital growth and rental yields.
I'd be more inclined to search for an older 60s-80s townhouse on its own land for that sought of money.
I'd be sticking within 500-1km to a train station.
My opinion, not advice I could be very wrong

 

I think Footscray has a lot going for it with being 5-7km from CBD and 3 train stations to choose from. Agreed that you would be best (if able) to look at townhouses/houses over apartments. Generally i dont think the big price drops of the east have affected the Maribyrnong council area, but unsure how long this would last into the new year and beyond. However with a lower buy in price in comparison it has in my opinion less of a chance to drop significantly. But these are only my thoughts, esp after buying a house not so long ago

 

My brother-in-law sold his house in Yarraville in oct last year. Would of got 1.150m all day everyday a year ago but passed in at Auction mid year and ended up selling for 980k afew months later. Was a fully renovated 3bd 2 bath Victorian. Was no shortage of interest but a big shortage of credit!
Have always loved the inner west but personally see better prospects in the north!

 

Fair call i think Yarraville is a different beast altogether with Seddon. Footscray esp near border of West Footscray still has some good opportunities because you can buy sub ~900 k. Obviously depends on the area as its a pretty big suburb. Hopefully your brother in law still got a good profit out of it anyway if they held it long!?
Also where do you like North? Just curious.

 

Thanks Silverson. My only concern is the budget of 450K doesnt allow me to get into some sort of house. If not Footscray, what are your thoughts on Werribee and Hoppers Crossing for a house with budget of around 450-500k?

 

I am looking this as an investment purpose but not as a place to live in. that's why I was thinking apartment might be good enough for CF compared to houses.

 

450 might get you a 2b flat in Footscray, but it certainly won't get you a house. You probably won't get housing for less than 600 in the inner/middle western suburb.
Fwiw I live in st Albans; gentrification is happening but it will have a westy edge for some time.

 

There is about to be a metric f load of apartments in Footscray. So unless you are getting some investment grade unit in a block you're unlikely to see cap growth you're after.

 

I was just about to post what TSK wrote. I wouldn't want to buy in Footscray, not with all the supply coming online. Rents are so cheap there anyway, I'm not sure what your rental yield would be, but I can't see high yields to justify low (or non-existant) capital growth.

 

Do you think checking in Werribee or Hoppers Crossing for a house in range of 500K compared to Apt in Footscray?

 

If you want to buy in Werribee or Hoppers crossing, I would say you wait a few more months unless you get a big bargain. The area has had significant price growth in last two years and now it's dropping fast! Just hold your breath and keep looking..

 

Look at this one:
6/1 Hatfield Court, West Footscray, Vic 3012

Very cheap to get into however no CG. I am about to buy one of these apartments in 2013 for $180k. After 5 years it's still sitting in the same price bracket. It was $210/week rental in 2013 which may have moved to $220-230/week now. Ended up buying in SE and doubled the price.

 

Any suggestions for good areas to buy in that price bracket for good CG with reasonable yield?

 

Can i ask why the property needs to be in Melb?

 

I am open to anywhere as long as there is enough CG and CF. The only reason I am looking at Melbourne is that Sydney is out of reach for that budget (and next option looking is Melbourne). To be honest, i haven't thought of looking at other cities as i am not much aware of local areas in other cities apart from Sydney and Melbourne.

Also, I am not in a hurry to buy. I can wait considering that the market seems to be in falling mode!

 

Ok good to know some background! And there's lots of infomation on other cities on this site and plenty of locals who could assist. Brisbane (in general) has better forecasted cg potential over the next couple of years and a lower cost of entry so i would consider also looking there. A quick search or check on where to buy section might give you a good starting point and then you can decide which city to concentrate on. Obv I'm no expert but hope it helps

 

Getting 2in1 isn't easy. You may need to study and inspect lots of properties. If you can stretch the budget upto $600k, I would suggest Noble park North or Endeavor Hills can be a good choice in the longer term.

 

Low purchase price, good positive cash flow, good potential for capital gain. Pick any two

 

I would prefer something near the train station. I believe both Endeavour Hills and Noble Park are a bit far off from the station