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VIC Melbourne - inner west vs outer, apartment vs house

Discussion in 'Where to Buy' started by Pins, 29th Jun, 2015.

  1. Pins

    Pins Well-Known Member

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    Melbourne
    Hi all,

    We have about $500-550k to spend on a buy/cosmetic renovate and hold, and have been researching Melbourne - inner west which is obviously growing. We were planning on going closer to $625k but have just decided to be more conservative in case lending restrictions change.

    We were originally looking at West Footscray, Footscray etc however to find a house in a good street within walking distance from the train station is not possible on this budget.

    We've also been looking at apartments in small blocks/villa units in places like Yarraville and Newport but I'm concerned that they haven't had much growth over the last few years compared to houses (which are more in demand in those areas and make up a much greater proportion of stock).

    We could go further afield a la Sunshine etc but I'm concerned about the growth we might achieve in the shorter term (1-2 yrs) as we will need this to be able to release equity for our next purchase.

    The question I'm asking myself is should we move out to the next ring and aim for a house or townhouse or focus on a good quality apartment/villa within the 10km radius.
     
  2. Big Will

    Big Will Well-Known Member

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    Hi Pins,

    Welcome to the forum.

    It is really up to what you prefer, myself personally I prefer to buy houses in decent suburbs with rail access as you will likely find a family to rent for a number of years (saves reletting fee). Compared to a 2 bed unit which a family can quickly out grow.

    Also buying houses saves on owner corps fees but you do need to look further out if you are comparing prices.

    Another saying you may or may not have seen is buildings depreciate and land appreciates, if you can find a place with future development potential it is a real bonus.
     
  3. dublin_101

    dublin_101 Active Member

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    VIC
    The three Ls apply to me in similar situations....no, not location location location, but Land Land and Land!

    Apartments are everywhere and there is always stock, hence why there is never a huge capital gain.
     
  4. sash

    sash Well-Known Member

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    How Northern suburbs 20 klms from Melbourne with a train station...still some where you get a house for under 500k.

     
  5. Pins

    Pins Well-Known Member

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    Not sure this is true. I bought an apartment in Sydney in 2010 for 350k now worth 550k (with cosmetic renovations). I think it's more about buying the right property for the suburb you're buying in and maximising land to asset ratio.

    I think there are plenty of SS folk who've done well from apartments.
     
  6. Big Will

    Big Will Well-Known Member

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    This is true Pins apartments can be good but if another 500 apartments hit the market in the suburb you have invested in is likely which means more competition and the only way you can compete with a new unit is drop your price or renovate it. After all if your unit is 5 years old and there is a brand new apartment next door which one would you prefer for the same price?

    However the chances of 50 new houses hitting the market in your suburb is unlikely unless it is a new suburb and even less chance of 500 new houses.

    Where I live there is a serious shortage of 4bed 2 bath houses renovated which increases the rent price, however there are a lot of 3bed 1bath townhouses yes in someway I compete with them but also if a family wants a yard for their kids to play plus need 4 beds or would like that 2nd bathroom (I sure do) then they need to pay a premium and cant be as fussy.
     
  7. HomeMinister

    HomeMinister Well-Known Member

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    footscary is capital of slum housing. good luck with renos and tenants worst than termites.

    sunshine has not seem much growth and is a to-be footscary sooner or later.
     
  8. Jingo

    Jingo Well-Known Member

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    Really?
     
  9. Be Developer

    Be Developer Property Developer Business Member

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    @Pins...go for house...closer to transport...
     
  10. Pins

    Pins Well-Known Member

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    Yep thanks. I think you're right. Have decided to go for either townhouse/villa or house a little further out
     
  11. jpcashflow

    jpcashflow Well-Known Member Business Member

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    21st Jun, 2015
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    Melbourne
    Hi Pins,

    I would be staying away from from apartments. I went for a drive into footscray today and I have noticed there are more apartments being built.

    I would rather by a few more kms away from footscray and invest in a home on a good size land.
     
  12. Beelzebub

    Beelzebub Well-Known Member

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    What about the Regional Rail Link? Two new stations have opened up in Hoppers/Werribee area and those areas have seen some good growth recently, they are also very affordable. There is a new estate going up, unfortunately this means lots of stock for new housing, but you can buy a H&L package within 800m of Tarneit station.
     
  13. littletee

    littletee Active Member

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    Clearly knows the area and market well......Said no-one ever! lol