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VIC Melbourne for IP up to 420k

Discussion in 'Where to Buy' started by David B, 16th Aug, 2016.

  1. David B

    David B Member

    Joined:
    11th May, 2016
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    Location:
    Melbourne
    Hi Everyone,

    I am looking for an IP and my budget is 400k~420k max.
    My strategy is to buy and hold for at least 10 to 15 years. I am not interested in apartments and OTPs.
    I know my budget is not very good but I couldn't afford more than this.

    My preference is to buy a house however, villa units are fine as well.
    I did some research and there are properties in following suburbs in my price range:
    • Frankston, Carrum Downs, Seaford in south east
    • Thomastown, Lalor, Epping, Mill Park in north
    • Werribee in west
    There are some other suburbs as well like Broadmeadows however, I don't see any bright future in such a suburb.

    Which one of the above suburbs have a better potential in long term?
    I would appreciate your advice and thoughts.
    Thanks,
     
  2. Spiderman

    Spiderman Well-Known Member

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    Location:
    Vic
    I'd only go for villa units in a suburb with good lifestyle AND where there is a significant price difference with houses.

    $420k should be able to just get you better than Frankston/Carrum Downs/Seaford. Eg Chelsea/Bonbeach may just be possible. Also consider Carrum. Although they are a fair distance from the CBD but have some lifestyle benefits.

    $420k (and even $320k) can get a house in Werribee and villa units are only slightly less. So you wouldn't consider a villa unit at all there. It might just buy a house in Laverton or a villa unit in Altona Meadows.

    Braybrook/Sunshine/Albion has had a poor reputation it is possibly the cheapest area relative to proximity to the city.
     
    David B likes this.
  3. Greyghost

    Greyghost Well-Known Member

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    Braybrook sunshine and Albion.
    Reputation? Same could be said about st kilda years ago.
    Have you seen the price movement in sunshine over the past 5 years. Even Albion, the poor cousin has moved significantly and the one which was the cheapest of the lot (sunshine west) has also moved a lot.
    Reputations or stigmas are fleeting imo
     
    Pixie likes this.
  4. sriram

    sriram New Member

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    Spiderman, could you please tell me why braybrook/sunshine/albion had poor reputation?
     
  5. AMelbZ

    AMelbZ Member

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    I am a new member and answer to David's question will help me as well.
    I think east or south east are better.
     
  6. PorkBellyLover

    PorkBellyLover Active Member

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    It's a mixture of past stigma and current condition. For example, these suburbs are known for their high crime rates, although getting better and gentrifying nowadays, still has the bad impression against it. You'll also find a lot of community housing in these suburbs which are occupied by mixture of low socio people, refugees, etc.

    Since you both are based in Melbourne, just take a drive to these part of Melbourne and seeing the condition first hand will tell you why. Try to see the surrounding during different time of the day/week to get a more complete picture.

    Once again, in my opinion, they're better now compared to what they were in the past, hence the reputation.
     
  7. UrbanDingo

    UrbanDingo Member

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    I would be very surprised if u get house for 420000 except in weribeeor epping among the areas u mentioned.....I was looking for property around two months ago......agents are underquoting at least 50000 dollars..........good luck though
     
  8. craigc

    craigc Active Member

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    To be SE Melbourne for that budget you could get into 3 bed house in Narre Warren or otherwise Doveton (lots of housing commission there).
     
  9. Redwood

    Redwood Well-Known Member

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    Hi there

    For this budget it is pretty limited. Land will provide more capital growth and perhaps less yield. Units will provide good yield and maybe a trade off for capital growth.

    Frankston - has stagnated in the last few years. For units I have not seen a massive increase, a client of mine bought a unit 18 months ago and sold for an extra $10k. Depends on which pocket but I do find it puzzling. I have seen some growth with T/H
    Carrum is flying lots of H/L been sold and going like hotcakes. Lots of owner occupiers buying there and even apartments are going up.
    Seaford - I like, its a sleeper. Its one suburb up from a place / suburb I have been buying up in for the last 12 months. Again - established units will be the go for your price range, house with land 600 sqm + will be 600+ depending on how close to the water and train line. Great for development.

    Re Werribee - lots of H&L going up, not my style - for my lifetime I have driven to Geelong and Werribee never smelt good, nothing has changed :) Lots of development going up and the spruikers are loving it. Personally its not for me.

    Re Thomastown etc, try Fawkner & Reservoir lots of good bargains and the developers are pushing in so a land grab could provide capital growth in 12 months times (with plan and permits even easier!)

    Hope that helps you

    Cheers Ivan
     
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  10. David B

    David B Member

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    Thanks for the comment,
    I have checked the sold prices for Bonbeach and Chelsea and I could not find anything under 420k.
     
    UrbanDingo likes this.
  11. Spiderman

    Spiderman Well-Known Member

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    The most recent I can see is 4/7 Kangaroo Road, Chelsea, vic - Property Sold Price at $390k

    It's not brick all-round but it's the rear of 4 units so has a large rear courtyard, parking for 2 cars and 2 sheds. Also only about 500m from the beach and not much more to station and shops. So I think in the current hot market the purchaser did well.

    This is a very nice unit but further inland and only 1br. $315k. 1/85 Argyle Avenue, Chelsea, vic - Property Sold Price
     
  12. melbournian

    melbournian Well-Known Member

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    i'll go narre warren - doveton is like a so dangerous and has a high foreclosure rates.
     
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