VIC melbourne $550,000 where to buy?

Im looking at buying an investment property in melbourne, for around $550,000.

I'm looking for a long term investment (probably 20-25 years)

I'm trying to find an older 2 or 3 bedroom house which as much land as possible (most i've been looking at are around 500-600 m2 blocks)

I have been looking at croydon, lillydale, mooralbark and frankston

Is there anywhere else I should be looking?

 

Sunshine area. Sunshine super hub coming soon 20mins to the city

 

Something like this? I know thats St Albans but there's not much in sunshine under $600,000

http://www.domain.com.au/2015762135

 

Yep, I had a look at this one the other day. Close to station and hospital.
Check out Ardeer, sth of the river also. Buyers agent are recommending Lalor area also

Because it's GRZ1 and not RGZ1 (like next door is) you might have a chance at it. With GRZ1 over 600m² you should be able to knock down and subdivide down the track.

 

So does the fact that its next to a property zoned RGZ1 that in the future the zoning of the property I posted may change to RGZ1? How do you find the zoning of a property without looking at the section 32?

 

Or Landchecker works well.
Don't plan on zone changes as a general rule, it may or may not ever happen. Do check out the "Sunshine national employment and innovation cluster" by the Victorian planning authority that has plans in and around Ginifer station. But again... its only a draft and may or may not ever happen.

 

Sorry I'm still trying to get my head around all of this, so if a block is zoned GRZ1 and over 600m2 it can be subdivided upon council approval? Or must it be changed to RGZ1before it can be subdivided?

 

2 different zones with 2 different requirements

 

Where do I find out the requirements for each differant zone?

 

The internet

Also different council to council.
Consider very carefully what your getting yourself into if you are factoring in development. Even if you think you meet all the councils requirements, say to later subdivide and build out the back, it might be dead and burried due to skinny driveway or difficulty with service connection etc.

Most of your money will come from cap growth based on your long term strategy so focus on solid fundamentals more than anything else.

 

Good architects/designers can bend the rules anyway. It's all just a big game.

 

Could also look a little further out West. Laverton area has a lot in the price zone you are looking at and subdivision and gentrification has already begun. Prices have also come off a little more older houses on larger blocks where as the new townhouses and developments seem to be increasing in value

 

With my strategy I see extra land/subdivision as a negative as they can keep producing more further west = No scarcity element.
Peter Koulizos thinks that gentrification (more than nice coffee shops) is only just starting to take place in Braybrook at best and thinks the full arc takes 20years or so. Cate Bakos thinks Sunshine is next out west.

 

Suppose that’s the beauty of property investment we all have different views and strategies...even the experts!

Laverton is pretty much landlocked and only 20kms from CBD. When I say subdivision I mean of existing blocks.

It’s worked for me anyway I have a positive CF property 20km from CBD that has achieved ~ 10%CG in about 18 months.

Each to their own.

 

True.

Here's a transcript from Peter K explaining his research findings in gentrification below ⬇️

Peter: The first one was a greater decrease than the state average in people aged 18 years and under. In other words, a gentrifying area will have less children.

A greater increase than the state average in couples without children. Those two are very closely tied.

A greater increase than the state average in people who lived at a different address five years ago. What this is telling me is that for gentrification to occur, you need different people moving into the area.

Typically, what you’ll have is in these areas, there will be people who moved in 40 or 50 years ago and are now in their 70s and 80s and don’t have the money nor the borrowing capacity nor the skills nor the energy to fix up their homes. So, as they leave the area, then younger people, white-collar people, professionals move in. They have the money, they have the borrowing capacity, and they have the knowledge and the skills – or they can access people with that knowledge and skills – to fix up their properties.

 

You'd easily get a 2 bedder in Upwey which may align to your approach.. the area seems to ebb and flow in terms of price but still good value imho for the reasons listed out www.realestate.com.au/news/melbourne-suburbs-buyers-should-target-john-mcgraths-top-five/

 

I lived in Upwey/Hills the most of my life, good to see it getting some good press!

 

It's a lovely area.. from what I can tell from the village is that it's starting to change significantly

Tecoma (village/shops) seems to be headed the other way (probably something to do with the maccas)