VIC Melbourne N Suburbs... need advice

Discussion in 'Where to Buy' started by ZAY, 18th Dec, 2019.

Join Australia's most dynamic and respected property investment community
  1. ZAY

    ZAY Member

    Joined:
    15th Oct, 2019
    Posts:
    7
    Location:
    Melbourne
    Hi,

    First things first, I am an over thinker, so when it comes to spending half a million dollars, it gets intense.

    I live at home with my family, no urgency to move out. Saving roughly 35-40k a year, savings are sitting on 70k for house deposit. Currently looking to purchase between 480-550k. I have been on the hunt intensively and have narrowed it down to these options and I can't wrap my head around what I should move towards, a lot of auctions this weekend. Some advice prior to that would be great, it may help me may confuse me more but hey I'll give it a go.

    Options are currently:

    Double story 3 bedroom townhouse in Westmeadows (515-535k) (16-17sq build)
    Gladstone Park side of westmeadows. its a nice small area, really good vibes. Would be happy to live in this area in future, not sure about how I'd feel in a townhouse with a shared land though.
    No body corp, one I am looking at does not share land and the other shared land with another townhouse so no body corp.

    Buy established in 3-4bedroom in Craigieburn. 480-540k. (19-22sq build)
    Huge suburb, a lot of amenities, much further out though.
    Don't love the suburb, don't love how far it is from everything, but great amenities and heaps of my family live there.

    Buy land 350sq'ish block in Craigieburn, build 21-22sq 4 bedroom home.
    Uncertainty of cost but can be anywhere between 520-550k.
    Can do custom build to give me freedom.

    Plans & Goals:

    Live in for a year, get my stamp duty for free, then move out rent for anywhere between 2-4 years and rent it out to help me make advancements on my mortage.


    As a single person, I want to minimise my loan as quickly as possible.

    I am also open to if i buy in Craigieburn and don't favour living there I could rent a townhouse or apartment even somewhere I like, I dont have to live where I own, I am happy to rent. I would prefer for it to be my PPOR but maybe could use it as a IP and purchase PPOR later?

    Questions:

    In terms of having minimum time without something renting, which do you think is the safest option? I think houses could potentially have people long term, townhouses maybe short term. Craigieburn is huge though so does Westmeadows being a small suburb have an advantage?

    If I'm not in a rush but would like to purchase property soon to get the ball rolling and be closer to making income through the rent, would you suggest I keep saving? If so for how long, or just purchase now (reminder: saving rate is about 35-40k a year)

    From an investment point of view, what do you think is the best option? Where else would you guys recommend in and around those areas?
     
  2. ZAY

    ZAY Member

    Joined:
    15th Oct, 2019
    Posts:
    7
    Location:
    Melbourne
    Also, is my observation right that it seems to be cheaper to build in outer skirts suburbs than it is to buy? It seems a good to be a good time to sell, not a good time to buy, but okay time to build
     
  3. Westie

    Westie Well-Known Member

    Joined:
    19th Jun, 2017
    Posts:
    1,136
    Location:
    Melbourne
    I don't know a whole lot about Westmeadows and its immediate surrounds, but it sure is lower socio-economic compared with C'burn and I definitely wouldn't want to buy a TH there (with/without body corp). If you can find a standalone property with the largest land component within your budget though, that'd be a better investment than a TH. Land appreciates, buildings depreciate.

    With C'burn, would you be able to buy a property walkable to the trains within your budget? Is living there/close to family a must? If not, try casting your net a bit wider and consider the areas of Albanvale/Kings Park/Ardeer. Some pockets are decidedly dodgy, make sure you DYOR.

    Other than the above, I always promote Geelong and its surrounds. Closer to the water, some parts dodgy but most are good areas to live in. People love being close to the water.
     
  4. The Y-man

    The Y-man Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    13,443
    Location:
    Melbourne
    Agree.
    I'd definitely look at the old part of c-burn near the station and old shopping centre

    The Y-man
     
  5. mytwocents

    mytwocents Well-Known Member

    Joined:
    9th Jul, 2018
    Posts:
    55
    Location:
    Melbourne
    Going anywhere near the greenvale or Mickleham region is a bad area to commute. You’re eventually not going to live there but there is heaps of supply so it won’t produce much capital.

    Driving up to this part of Melbourne is terrible (Mickleham way). The government will not invest in public transport and the residents are already producing a petition to have roads widened. Absolute nightmare.

    The so called low socio economic of the north west also has some of the highest figures in ownership. The stigma attached derives from the schooling and high street shops that an area can develop and unfortunately there is none. There is so many factors at play and everyone has the age old question of what they can do with half a million as banks are now throwing it at Every young investors who can service a mortgage caus they still live with their parents.

    You’re not going to lose out anywhere if you buy a house and land today in Craigieburn, Epping, Mickleham, Plumpton and even down in Geelong. Just follow where there is plenty of jobs and someone will always need to rent. In turn everyone is a pundit in investment if they put their money on the table. Some more rewarding than others but meh... unless you have a legacy to leave to kids, the idea of retiring at 60 to enjoy the fruits of your labour while paying off four walls in multiple investments is kind of volunteer slavery. So ask yourself if you want to just own your own home earlier or keep investing until you get old and wrinkly lol ... I digress.


    IMO... Airport west is doing well and because it is serviced. Most underrated suburb in Melbourne. Unfortunately the tram line stopped there which could of led to the airport and create more linkages out to the west and north. Again a missed opportunity because developers and government spending have ruined the landscape of Melbourne.
    Investors are looking to the closest possible train lines to make sure they get returns from Epping, Watergardens and even as far as Diggers Rest now.
    A townhouse would still suffice and Glenroy has great access to a Zone 1 train line. Yes it is nicknamed ‘little Baghdad’ but Melbourne is no longer East vs West or affluent vs commoner. It’s one big village.

    Access is detrimental. Driving a car in Melbourne by 2040 would be torture. If we do not invest sooner in transport and have a transport hub that creates a vine effect like Hong Kong, Tokyo or New York then I suggest just investing in a city where there is a huge pink economy.

    happy New Year!!
     
  6. andyboiii

    andyboiii Well-Known Member

    Joined:
    29th Nov, 2016
    Posts:
    394
    Location:
    Melbourne
    Mickleham isn't as bad as you think. The roads are more than adequate. I've lived there for the last 1.5 years in a new house and made substantial capital gains.

    Just got a bus service that stops 20m from my house and goes to Craigieburn train station if I need it, shops coming end of 2020 and schools also coming quite quickly. Easy to get to the city (yes, it's a long distance), but IMO it's nothing like being in the south east where you have to take the Monash which is an absolute nightmare.

    Craigieburn, close to the station, you're like looking at over $650k for a big block. I lived there in the old part from 1988 to 2010, moved to Glenroy from 2010 - 2018 and now in Mickleham so I'm pretty well versed in terms of knowledge of the areas.
     
    Westie and The Y-man like this.