VIC Melbourn Outer Suburb - 500k

Lol

I think unemployment rate in that suburb is not good

 

Well a few months back i saw a really ugly corner block in hadfield go for 410. Amazing a few months later prices were rocketing up in the area. Its amazing though what a few nice cafes will do to a suburb

 

Both suburbs have vacancy rates over 2% according to SQM, so take this into account However, Albanvale appears to have had some amazing growth over the last year / 5 years. especially in Melbourne terms.

I wonder if it's Roxborough Park's turn next? While it does not have its own train station, it is wedged between Broady and Craigieburn, which are growth areas / shopping centres galore. I don't know enough about the suburb to offer any more than that but do investigate further.

With 500k, I'd still consider Werribee and more established Northern suburbs around Reservoir if you can secure a good yield. Otherwise, sit tight and wait for the next boom cycle

 

Yes it is, however being right on the Metro train line gives it an advantage. It takes 40min to get to the city, which is similar to (if not more than) much closer suburbs like Keilor East, Airport West and Keilor proper. Not to mention it's a single seat journey, and you can get home at all hours (unlike 'bus' suburbs where after 9pm you're stuck).

 

Fair points, it does sound very convenient..

 

Thanks a lot.

I think I will consider only suburbs that haven't had much growth in the last few years, but have good fundamentals.

 

For 500k i would add votes to Thomastown and Lalor. Thomastown has recently gone pretty crazy, lots of blocks starting to sell for more than $1,000/sqm but a few gems still around. The area has lots of townhouse developments and big lots are going to become more rare. I'd be surprised if by end of the year you could still pick up a full size block in Thomastown/Lalor for under 500k.

IMO price pressure will come from land constraints. There is not much available development land left in the corridor when you overlay the VIC urban sprawl limits, so in-fill will pick up for people wanting to live in this corridor (arguably still the best value option for family friendly suburbs within 20km of CBD).

As these areas have already had significant growth, rental yields are starting to slip but i still see a lot of mileage in price solely due to development value. Worth considering if you can accept sub-4% yield.

 

Roxbourgh Park does have its own train station and is closer to the CBD than Craigieburn. Problem is, the people that live there. It's wedged between Craigieburn and Meadow Heights. Not a huge fan of Meadow Heights.

A couple of places I'd look for with that money is West Meadows and even the western side of Glenroy (Hadfield area). Glenroy/Hadfield is 13km from the city which is IMO, undervalued. Try finding a place of that distance in the SE for $550k. Unfortunately, people are cottoning on to this and the prices are rising rapidly. I live in Glenroy now, but lived in Craigieburn from 1988-2010. Moving back to Mickleham once my house is built this time next year.

Westmeadows is a bit of a sleeper. It's close to airport west and the ring road with ease of access and still close to the city (~15-18km). Lots of public transport and lots of amenities nearby. My brother bought an established place on 600sqm 2-3 years ago for $325k and it's now worth well over $400k.

 

Westmeadows has a beautiful feel to it. If you're looking in that direction, how about Tullamarine or Gladstone Park? May be the higher end of your budget though.

 

Have u considered Jacana?
You would come in under budget and I think if you get in now u will make it before it really booms.
We bought in there earlier last year, and it's already moved up a bit.
I think our next val will come in at least 100k higher than what we paid.

 

Jacana, Dallas, Broady my picks

 

Have you thought about Melbourne's Western Suburbs of Werribee, Tarneit, Truganina and Manor lakes.
I have bought 2 Investments in last 3 yrs and they have grown about close to $120K combined.
I'll recommend looking into werribee as they have Werribee East City Precint coming up in couple of years.