VIC Location help - $450,000-$500,000

Discussion in 'Where to Buy' started by melbinv82, 5th Nov, 2019.

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  1. melbinv82

    melbinv82 Well-Known Member

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    Hello guys,

    Looking through the forum for the last few days and learnt a lot. Great forum.

    I am trying to buy my first investment property in Melbourne. Budget is $450,000ish. Intention is to buy and keep it for at least the next 10-15 years, so capital growth over time is more important to me rather than rental yield in the first 3-5 years(although higher the better hah).

    Looking to buy a house. With my budget, my choice is limited to outer western suburbs or perhaps pakenham side. I looked around melton south, hoppers crossing, craigeburn. Ideally would like something 500sq mt +

    May I get some suggestions please about these 3 or any other suburbs based on my budget.
     
  2. ashish1137

    ashish1137 Well-Known Member

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    Hi @melbinv82
    In this budget, I believe you are looking at the wrong areas for the wrong product.
    Either increase your budget to look into these areas, reduce the land size you are seeking or move out.

    Regards
     
    Last edited by a moderator: 18th Apr, 2022
  3. BuyersAgent

    BuyersAgent Well-Known Member Business Member

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    Why does it need to be in Melbourne? Have you thought through your goals, planned out a strategy that works for you? Will this be your only property or are you planning on creating a portfolio? Some more thinking at this stage is likely to pay dividends later.
     
    Toby likes this.
  4. Leslie

    Leslie Well-Known Member

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    This is very close to the Median price in Perth.;). You may find lot of properties in that price range in Perth.
     
    KRB likes this.
  5. melbinv82

    melbinv82 Well-Known Member

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    I am located in Melbourne. As this will be my first investment property I would prefer something not too far from where I am located. I would not be able to afford the second IP for at least 5 years after that.
     
  6. fols

    fols Well-Known Member

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    Are you going to mow the lawns?
     
  7. melbinv82

    melbinv82 Well-Known Member

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    It's difficult for me travel to other cities because of work commitments. I don't want to buy the property Before viewing it in person, couple of times. Plus this will be my first IP, so I prefer in the same city. If this goes well, I may look into buying somewhere in another city.

    Perhaps I may be ok with Geelong .But not other cities at the moment.
     
  8. Scott No Mates

    Scott No Mates Well-Known Member

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    If not, call @datto ;)
     
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  9. 3rd Drop

    3rd Drop Well-Known Member

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    I would suggest Hoppers crossing first, then Cragieburn and Melton South as last choice .
    Have you thought of Cranbourne? You can still get independent house with 500+sqm land under $500k.
     
    housechopper2 likes this.
  10. melbinv82

    melbinv82 Well-Known Member

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    Thanks. I haven't searched Cranbourne yet. Will look at this weekend.
     
  11. 3rd Drop

    3rd Drop Well-Known Member

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    Check this one:
    40 Campbell Parade Cranbourne Vic 3977 40 Campbell Parade, Cranbourne, Vic 3977
    Good property within your price range.
     
    melbinv82 likes this.
  12. 3rd Drop

    3rd Drop Well-Known Member

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    melbinv82 likes this.
  13. melbinv82

    melbinv82 Well-Known Member

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    Thanks for the links. The houses look so much better than melton south. Might drive down there on the Weekend to have a look.
     
  14. Westie

    Westie Well-Known Member

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    Both the properties linked to above have been reno'd (and a seemingly decent job too), you'd be paying for the profit the vendor's looking to achieve. You should look at an unreno'd property that you can add value to via a minor reno (such as fresh carpets, paint etc). That way you'd potentialy get the same (or very close) rent as you would for these two properties. Finally, buy the property with the biggest land component you can afford.
     
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  15. datto

    datto Well-Known Member

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    Nah, I'm knackered. This heat is getting to me. I need a tub of ice water.
     
  16. Scott No Mates

    Scott No Mates Well-Known Member

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    Sounds like you need a Bex and a good lie down?
     
  17. melbinv82

    melbinv82 Well-Known Member

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    Any tips about negotiating if I am looking to get a house in the above suburbs? I understand, it all depends on how keen the seller is to sell and the bids made by other buyers, but how to sniff out how low the seller is willing to sell from the real estate agent while not appearing time waster?
     
  18. The Y-man

    The Y-man Moderator Staff Member

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    Tell them that you are an investor (therefore numbers matter).
    Ask the rent this place can achieve (you should know this already, but you ask anyway)
    Ask the outgoings.
    Add up the numbers and make a face that says "#@$%"
    Ask "...and how much was the vendor wanting for this?" (looking troubled)
    Wait for the figure to come back if possible (the one who names a price first will lose)
    Negotiate basically saying "This isn't going to make sense as an investment for unless I can get this for $X..."

    Point out things that may need fixing (thus denting your return). For example at 36 Valepark, you would mention the rotting timber work on the patio which may bring the whole roof down and kill the tenants, the timber wok on the flashings and above the windows that are probably rotting, the pointing that's falling out of the end tiles of the roof, and the broken fence that will let killer dogs loose in the garden from next door.

    This way there is no precept of you falling in love with the house, you are after the numbers, you'll walk away if you can't get the price (which you must be willing to do)

    Ask for the section 32 regardless because a. it makes you look like you have done this heaps of times before b. it tells the agent you are serious.

    Note: a good agent will come back to you with how strongly the area has grown and will grow, what an excellent investment this is, has a queue of renters lining up, ready to bid the rent price up, etc etc ~~ just look unimpressed, and stare at the calculator function on your phone.

    The Y-man
     
    Last edited: 8th Nov, 2019
    orangecopper, Rambo, Shazz@ and 7 others like this.
  19. melbinv82

    melbinv82 Well-Known Member

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    Thanks a lot. I will keep these things in mind.
     
  20. melbinv82

    melbinv82 Well-Known Member

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    Saw some places in pakenham today. What's your opinion about pakenham as a suburb for IP ?

    something like this for $500,000

    97 Greendale Blvd, Pakenham, Vic 3810

    I have started looking at properties only couple of weeks ago, might make a decision in the next 4-6 weeks
     

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