Melbourne house in new estate or bigger block

Hi guys,

I have a 750k budget, now tossing between buying a new(ish) house in an estate and an older house on a block. With this in mind, I can either get a new house in Keysborough Somerfield (smaller land) or a bigger but older house (on bigger land too) further out, for example Rowville or Ferntree Gully.

While I like the look and feel of a new house, and also Keysborough being not far from the beach, I think a house in Somerfield probably won’t grow as much given there are so many of them already, and so many more are being built.

What do you guys think? I am open to other suggestions too!

 

I think this comes down to personal preference, if you like the look and feel of a new house, closer to the beach then get that one. If you like an older house on a bigger block with more yard space and potential to add value by doing some renos etc. buy that.
How long do you intend to hold the property for?

 

Like @sash always says, you gotta have the vision. In the areas you're looking to buy, what do they have going for them in the next few years. Go through council's websites etc to gauge that. Somerfield is all sold out, in fact I got a call from the sales manager there today, there's 1 block back on the market, it's a H&L package for like $700k. Not worth it IMO. You want something in the low 4's to make it worthwhile unless you want to make it your PPoR without which you'd be bleeding money every month making those repayments (think of -ve gearing too if that's what you're intending to do)

 

I personally will choose Rowville or Ferntree Gully (if you need the train), just because I don't like the surrounding suburbs for Keysborough.
Besides, one can always do renovations / extend / demolish & build something new down the track on their land.
Having said that, it's all down to personal preference and as whether you like that particular suburb, with PPOR there is no right and wrong.
Good luck with house hunting!

 

Thanks for your input everyone! I have decided that I will buy something with land because I will have the options to add value down the track. It's getting hard now with my budget though because Melbourne market is really hot right now Feel free to give me suggestions if you have any!

@Lindsay_W I am planning to hold for as long as possible. You're right, it's all about personal preferences and I am still trying to make up my mind on this one At the same time though I would also like to buy something that will grow in value over time, so if I do decide to sell it I wont be up for a loss

@Westie Thanks for the reminder re. having a vision, I need to check out councils website and get better at understanding the information on there I agree Somerfield won't give me the best bang for my bucks considering how much houses have increased in price over there.

@purplecat Thank you! I am inclined towards Rowville and Ferntree Gully too, besides I think over time land value will increase more, and like you said I can add value to it as my PPOR or IP.