VIC Melbourne choice under 500k

I've noticed that units in Frankston are going off - fhb territory. My guess is that all these places will continue to do well because of first home buyers most definitely jumping in. Must be in the right price range.

 

Mate you listed a bunch of melbourne suburbs that have probably experienced 60-80% growth in 2 years
You requested where you could 20% and i reckon your best shot is at phillip island.
In the last two cycles phillip island has been valued luch higher than any of the suburbs you mentioned above
Presently its valued lower and only just started going up.
Hence that would be my suggestion

 

Hi

Goodness me I hope you are right. In September this year I put a deposit on a block of land in Seagrove Estate that I intend to build and live in, and yes I know it doesn't have the island atmosphere and is more of a new estate type feel but as a single male I thought it would be better for me to buy in a part of the island where I noticed a lot of owner/occupies and not just holiday homes that were empty most parts of the year in the hope of meeting some friendly locals.

Anyway since paying my deposit on the land in September this year I have noticed that the prices of land in the cheaper Shoalhaven Estate is now the same price as what I paid for my block. House & Land packages in Seagrove Estate which were advertised from under $399,000 up to $479,000 are now $520,000. No comparable lots are for sale in Seagrove Estate anymore on their own just the small acreage lots at the rear which are way over $400,000.

Having said all of the above you can get houses on the island for very low $300,000's and these I think are where big gains are about to be made.

I am looking for my 2nd property on the island now but all of mine are purchased with a long term hold view and will be passed onto some happy nephews and a niece when I am no longer around!

Regards,

alicudi

 

Cycles, booms dont last forever that is fact, I wish they did

 

Any one of those suburbs *might* net you the return you're hoping for but that's gambling, not investing. If you want to gamble IMHO the risk/reward looks better in bitcoin.

 

I think things are starting to stagnate. I could be wrong though. One of mine went up 200k in 12 months, but I don't expect it to do anything for another 7-10years. I think Melbs had its boom. If you can hold for 10 years if things don't go up, you can't go wrong with most of those. I have a feeling Meltons close to its peak until next round though.

 

If you’re going for the punt then all these suburbs are in the right price range for entry point so that’s working for you. As long as high population growth continues, interest rates stay low, unemployment rates stay low, government rules don’t change, financial crisis.
I hope they have 20% growth but I personally don’t think so, but I wish so as I own in this entry point market.
I like your list and I would add Wyndham.

Will be interesting to see the performance results in 12 months time.

 

Im fairly confident that if an average house in cranbourne is looking at 500k then an average house on the island will.achieve the same

We subdivided 6 months ago and a block in our street sold for only 155k. Now the cheapest 600sqm blocks are over 200k so its definately on a quick upswing
The estates are pretty muvh sold out, now supply will come to a halt for the next few years at a minimum

 

Sorry (not really) but I completely disagree with you.

If anyone knew what suburb will grow by 20-25% p.a they wouldn’t be posting on them on a public forums the year woulda be trying to get as much finance as possible so they can buy every property to sell.

You asked about investing for 12 months and not gambling, do what you like I don’t care however get your question right first otherwise you will get a response for the question you asked.

Also if you think buying the cheapest properties is gaurenteed way of making money there is usually a reason why they are cheaper and that is they are less desirable. These properties are usually the last to go up and first to go down but hey do what you want.

 

I never agree with you on this one - politely disagree. It may not suit your style/approach and therefore you haven't experienced the growth that the right cheaper properties can give. For example, what boomed first in Sydney this time around? Western suburbs, units, affordable.
And outer Melbourne looking healthier than anywhere else atm.
Also, cheaper places quietly increase in value through 'flat' spells. Again, western suburbs of Sydney 2009-10.
Buying property in Australia is not the same as buying clothes. Mass migration keeps affordable property bouyant. Plus, definitions change rapidly e.g. what is considered 'inner'; 'outer'; 'desirable', etc.

 

There is no arguing that Melbourne has had a good run. Our son bought there nearly four years ago and comparable properties sold nearly are at least 50% higher in price achieved.

How much longer this will continue is anyone's guess.
Marg

 

Absolutely agree with you and its a myth that blue chip always out performs, not so. As you mentioned it was outer western suburbs in Syd that boomed first this was immigration and affordability that drove this market.

Exactly what is happening in Melb at the moment, outer burbs, this is what FHB can afford.

Same in Perth I was buying in State Housing suburbs, started booming because government rezoned the land and developers jumped in.

If investors look outside the square it opens many more opportunities. Its worked for me over the last 17 years.

MTR

 

Investors are actually out of this market now, this is why we are seeing outer burbs booming, its FHB territory...as prices rise there will come a point where affordability comes into play.
Also need to look at what is the cut off point for FHB in terms of government funds.

 

How did that turn out for long term buy and hold investors? Those suburbs have been hit the hardest during this years correction dropping 20% compared to better quality suburbs dropping 10%.

You are telling half the story for inexperienced people who will read this and don't know that you are talking specifically about buy and sell locations and not for buy and hold locations.

Advice with half the story is dangerous for new people to hear and does more harm than good IMO.

 

Just check sold price for these suburbs. Even hoppers hit 570-640k for 3 bedroom..

 

Depends how you say it?

Has move impact like this

 

Hi I know the market value and the current selling price are way higher atm but you still can find one for around median price. Average condition or little TLC needed ones.
If it continues to be strong early next year, all those bottom prices may be gone.

 

Yeah, true. I keep my eyes around those surbub for few months now. 50k up from Nov to Dec for hoppers and Werribee . not sure about next year’s market.

 

I think you can make decent gains if you buy right and at this stage of the cycle you have to be very specific on purchase.

 

I think you should read my signature.....timing is everything