VIC Melbourne IP 400k

Hi everyone,
I am looking for to buy an IP in Melbourne and my budget is 400k, this is my first ip.
I know that only villa units are possible with this budget.
Location wise, which suburb is your suggestion?
I am thinking about Ringwood east or even reservoir but is not that easy to find a liveable unit in above suburbs for under 400k.
Thank you in advance

 

Thank you for the reply. But I dont see any capital gain in an area like Mernda, supply vs demand in Mernda is in favour of supply.
More established suburb is my preference.
Nobel park links that you sent above are good I need to look at that area for potential IP. Thank you

 

True, I know that area but that area needs a decent road or freeway to fix the traffic jam issue in peak hours.north and north east suffers from lack of roads.
Epping is much better than Mernda and its closer to CBD

 

Unit in oak park?

 

I would look at Jacana, Broadmeadows and Meadow Heights for subdivision potential plus good amenities and for me yield too as I have an IP in Meadow Heights.

 

The quality of tenants in those suburbs is a major concern. Are you happy with your tenants?
I drove past Broadie once last year and the suburb looked awful
Actually I went there for an inspection but did not bother even to get off the car

 

Meadow Heights if you look at the homes was all owner occupiers selling and the state of the house reflected that well looked after feel. Personally for me zero issues to date, I got a family in 2 weeks after adverts returning 5.35% yield and they are migrants. The first inspection I decided to go, they maintained the house beautifully and I asked them if I need to take my shoes off when I don't even do it at my own home.
When I went to see jacana and Broady it was more investor stock, same for Dallas and Coolaroo, so it was rougher. Best thing to do would be to call up an RE agent, ask them of issues they have faced, as well as the percentage of houses they faced those in as my experience has been great but don't just rely on that. When I was investigating Frankston as a potential I did the same, heard good and bad stories so just called up REAs in the area and that was some great insight.
My thinking is that in these suburbs you are 15 km from city, the trains are regular, take about 30 mins journey, the amenities are great, these suburbs are directly after the more sought after Pascoe vale, Oak park and Glenroy.. If you are investing for long term, its great value for money and likely will get over the perception.

 

I will add though, if you suffer from perception bias nothing but the suburb already changing will help. I was talking to my best friends mum, and she was living 40 km away from her workplace, quite a distance away from city and I suggested to her to buy a house around there as it would be in budget plus meadow heights is about 5km from where she works and she wouldn't buy there. Even though I really wouldn't suggest any suburb that has given me any headache to her and misguide her in any way..
On the other hand her own close friend has already bought her home there as a no brainer, she tenants rooms out and has not had any issues as a single woman managing all that, no RE agent to fall back on. But my best friends mum still won't go for it.

 

It seems like you've done your research and selected where you want to invest, now you just need assurance and someone to tell you the name of your chosen area.
I would suggest if your research is telling you a good story and the numbers stack up, then take the action.

 

Thank you for clarification, I have not been to Meadow Heights before, seems that you are happy with your tenants, I might go there next week to see the area and inspect few properties.

 

of course that I have done my research. I also spoke to a buyers agent, but I always ask a for the second opinion before I make my final decision.
after this post, from inputs that I recieved from "The Y Man" and "Gypsyblood" I am going to do some research on Nobel park and Meadow Heights.

 

We have tenants in Jacana. Honestly couldn't ask for better tenants. House is spotless
, garden better condition than when we handed over, rent paid before due each month, beautiful family who migrated as refugees. Most house proud people I know

 

Thanks, I have just checked your post

 

Let us know how you go