VIC Melbourn Outer Suburb - 500k

Good day guys!

I had a chat with a lovely BA for Melbourn today as we are potentially contemplating a purchase in Melbourne. We came to this idea as it looks like there is still some value in outer northern and western suburbs, e.g. they haven't grown much yet, especially compared to the inner - mid suburbs.

Our budget is 500k and it looks like we can only afford to buy 25-30km from CBD. We are targeting capital growth and rental yields of around 4.5% which seems feasible for these suburbs.

My main concern here is very high distance from CBD. 25-30km just seems a bit too far. What are everyone's thoughts about this?

Many thanks!

 

Croydon is around this distance and had spectacular growth, still in demand but the boat has sailed, south east... look at suburbs next to this area? I don't know whether there is still upside. Older homes are very much in demand on decent size block..

 

That's nothing... us Melbourne peeps are far less travel adverse to other states.
Remember not everyone works in the city too.

 

Thanks MTR.

What's your view on outer north and west suburbs?

 

The BA mentioned good bus transport, but she said buying next to the train line would be above my budget.

 

25-30 kms, you consider too much distance?
Where are you from? Adelaide?

50 k's out and you are looking for better rents for similar houses in Melbourne? Just try to figure out why?

Regards

 

Try Sunbury for that kind of budget. Right on the train line and freeway and gives a great lifestyle.

 

Hmm... 41km from the city...

 

What do you guys think about Albanvale and Roxborough Park?

Both suburbs ate within 20km and both have solid rental yield (4.2% and 4.5%).

 

I don't know enough about Melbourne to give a strong opinion but Albanvale looks like the kind of place I would consider. It's not on the railway line but not too far to the station. It's also an area of town that interests me.
I really can't say anything valid about Roxborough Park because I just don't know. Again, looks close enough to a station.
I would look in both areas and find the house with the best possible yield or some outstanding feature. I don't like those yields much. My Frankston property was 4.5% for ages and it's a bit low for me.

 

Thanks a lot mate.

Do you think there is still some value left in Frankston?

 

'Never too late for Frankston' is one of my mottos.
Seriously though, probably got a little steam left in it. It has already moved quite a bit but I think there are more people looking there these days.

 

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Oooh... that might be a deterrent then for potential buyers and stunt the CG?

 

Haha fair enough

Any other suburbs you would warmly recommend for 500k budget?

I know you think highly of South Morang, Mill Park, Epping, and Lalor if I'm not mistaken.

 

Thanks man.

I'm more focused on north and west suburbs though.