Melbourne east - PPOR advice for fhob

Discussion in 'Where to Buy' started by Inertiaticesp, 2nd Aug, 2019.

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  1. Inertiaticesp

    Inertiaticesp Member

    Joined:
    2nd Aug, 2019
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    Location:
    Melbourne
    Hi all,

    Have been scouring these forums during our property search for the last six months. We've (double income no kids but kids in near future) deposit and are keen to find a ppor in Melbourne. We live in Armadale ATM in an apartment and aren't looking for a mini Mansion, just something modest. Feel most of what would be comfortable living is well out of our price range so are looking further out.

    Have found a property approx 15km out of CBD along the Dandenong corridor. The details:

    Free standing unit in group of 6
    255 square of land (decent front yard street frontage surrounded by fence)
    2 , 1, 1
    Built 1960

    A few questions:

    Depending on title, would it be possible to perform extensions to the property (e.g add a bedroom, extend lIving area)?

    From your experience, how is renting for property this far out of the CBD (should we choose to rent it out in five or so years)?

    Thoughts on whether this would be a reasonably safe strategy as our first buy?

    Thanks!
     
  2. Trainee

    Trainee Well-Known Member

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    10,257
    Location:
    Australia
    Price, income, deposit, savings per month?
     
  3. Inertiaticesp

    Inertiaticesp Member

    Joined:
    2nd Aug, 2019
    Posts:
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    Location:
    Melbourne
    Apologies, wrote this on the train into work.

    The property is going to auction with range 550-600
    Income - 94000 and 75000 gross (variable bonuses on top of salary)
    Deposit - 10%-15% depending on what we pay/whether we want to keep a bit of a money buffer
    Savings per month fluctuates between 3-4k depending on life.
     
  4. Inertiaticesp

    Inertiaticesp Member

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    Location:
    Melbourne
    Also, I guess for the complete picture - the unit has been refreshed internally, probably 6-7 years ago by the looks of it (think floorboards/new tiles in living and kitchen, fresh paint, living area opened up to front yard with sliding doors).
     
  5. The Y-man

    The Y-man Moderator Staff Member

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    Location:
    Melbourne
    We have a unit in a 4-pack in Clayton South since 2000 ~ rarely vacant, but it's a 3/2+garage

    The Y-man
     
  6. The Y-man

    The Y-man Moderator Staff Member

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    I'm not sure that I have ever seen a legit one - but then maybe they looked "normal" because they were legit..... I imagine would have to go through OC and Council....

    The Y-man
     
  7. The Y-man

    The Y-man Moderator Staff Member

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    I'd get it check to see if any "opening up" was a legit job (from a building perspective and approval)

    The Y-man
     
  8. Triton

    Triton Well-Known Member

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    8th Sep, 2017
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    Location:
    Vic
    If you are both young, with that income and I assume potential for decent increases, I would stretch the budget to buy a house in the best suburb you can.. Obviously put aside some savings for unforeseen circumstances. Units don't have the same capital growth as houses, so should the market rebound, you will struggle to buy houses in decent suburbs in say 5 to 10 years time when you have kids.