VIC Melbourne -investment property

Hello I was recently told by a mortgage broker that i could borrow up to $450,000 for my first investment property or $350,000 for a PPOR.I was considering buying a 3 bedroom established house in Werribee but I spoke to 2 prominent real estate experts and they both said to buy a 1 bedroom flat/apartment in the Eastern suburbs such as Camberwell, Hawthorn, Kew, Port Melbourne , St kilda West etc. What are your thoughts? and does anyone own apartments in these blue chip suburbs? and if so how have the apartments performed for them. Thank you.

 

I think decent units in Eastern suburbs is already beyond $450,000, maybe apartment is possible. I would also like to hear what others think ......

 

ok yea i meant apartment/older built apartment

 

What were the prominent real estate experts reasons for purchasing the apartment?

 

A $450k budget would get a 1 bedroom apartment in a lot of locations. I'm not sure if it would be a good investment though, this market is somewhat oversupplied at the moment.

Werribee houses have long moved beyond the $450k price point. The satellite suburbs of Geelong might still be available. Ballarat is looking good.

 

Yea I would also be careful about the apartment oversupply. Not that those suburbs have been black listed by the banks YET. I would just be careful with apartment market investment for the foreseeable future.

 

Because its a blue chip suburb it will have high income per household , good schools and being an established area etc. I agree with there point but i think a 2 bedroom would be a much more solid investment. but then your looking at maybe $600,000 in hawthorn or doncaster...

 

Re. Your family situation - How long till you will want to live in a PPOR?

If single and looking to build a property empire then go for the IP, if you are thinking of settling down within the next 3 years I would consider looking for small PPOR as your first purchase

 

i am not sure but ive been renting in sharehouses for the last 5 years and i am a bit sick of it. although if i buy a 2 bed unit or 3bed house as a PPOR ill have to rent the other rooms out anyway to cover expenses. In your experience would you feel happy if you owned the place you were living in or it doesnt matter as long as you are building wealth??

 

im already 31 but no partner at the moment, been working only 4 years and im casual...

 

I wouldn't mind renting out rooms in a PPOR if it was a good setup for shared living - eg 2 bathrooms, housemate not often home etc.. one benefit of owning is you can choose the housemate.

 

do you own a house ? and where do you live? i rent a room in a share house in templestowe lower...

 

I think you could buy a house on a sub divided block or about 350m2 with that budget. I would be looking at pakenham, Officer, Cranbourne etc. if your not fussy and not expecting brand new it’s definitely doable. I saw one this week advertised 380-410. They are becoming harder to find but if you look hard enough they are there.
I think growth will be good as houses become more unaffordable units and small houses on small blocks will quickly follow. I’m already noticing units that were height 2s a year ago are now high 3s.

 

Not sure which prominent expert suggested that.
Ppl who go live in places like kew won’t want apartments.

Hawthorn has a lot of apartments - and they’re not that easy to offload - I got a group of friends building a small boutique apartment block in hawthorn and it ain’t that easy to sell.

I myself came from refurbishment old apartments and selling apartments in the past and have bought and sold many before in melbourne. For me one bedroom is a def no. Great for cashflow like Airbnb and for like a super fund but at ur age u should be chasing some capital gain as u can still work to get more income. There are still places to buy at 450k mark

 

One bedroom apartment and proximity to schools is a moot point. It is a combination that does not make sense. The parents will sleep in the only bedroom and there will be no bedrooms for the children.