VIC IP suburbs in Melbourne with SMSF

Hi

I am looking at buying a property with my SMSF . Budget is @550k

need a decent rental yield in addition to capital growth. Looking at western suburbs or outer south eastern suburbs

i have been consienring the following
Melton
Mickleham
Officer

Input thoughts appreciated
Thanks

 

Not sure what you consider decent rental yield, but for that budget I'd be looking at Werribee and its surrounds. Yield's pretty poor almost anywhere, but if you're decisive you may get something BMV and get better yield that way. Whatever you do, buy a property with the largest land component you can afford and preferably walking distance to a train station or major shopping center.

 

Well I meant atleast having a ongoing rental yield .

 

Have you thought of Cranbourne or Cranbourne West?
You can still get a 3 bedroom house with 500 to 600 sqm land for less than $500k.
Surrounded by existing infrastructures and dual train track under construction. Worth having a look before making any decision.

 

What about braybrook or officer ?

 

Braybrook appears way over your budget (for houses), small townhouses sell for $550k or so. I wouldn't buy them, have you seen the amount of development going around Braybrook and Maidstone? IMO, that'd depress CG for some time to come. @sash has IPs in Officer, maybe he can shed light.

 

But isn’t that development a bonus and that means it would grow further

 

You will be able to get something under 500k.....in Officer.

But you may need to wait for the land...

 

Well, when there's lot of supply, prices get suppressed, generally. Cast your eye over at the Kings Park, Albanvale, Deer Park sorta area too.

 

Cash purchase or mortgage? Why residential?

 

Super managed

 

I have a resi in my SMSF, interest rates are higher than the usual IP mortgages.

You'll need enough liquidity and good yield to make it work. Negative gearing is pretty close to pointless in a SMSF.