Melbourne or Canberra for an investment in 2017?

Discussion in 'Where to Buy' started by Mcube, 13th May, 2017.

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  1. Mcube

    Mcube Well-Known Member

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    Hi All,
    I am a newbie to property invesment. I have been thinking whether I should invest in Melbourne or Canberra this year considering Melbourne properties have gone up a lot recently. So, wondering it has peaked yet? Canberra prices are rising but not the same pace as Melbourne. I have a PPOR in Canberra and an IP in Brisbane. Any advice would be appreciated!
     
    Mcube, 13th May, 2017
    #1
  2. strongy1986

    strongy1986 Well-Known Member

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    Just buy in a city/ town that hasnt done much and be patient
    Chasing the herd around wont get you anywhere
     
    strongy1986, 13th May, 2017
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  3. Mcube

    Mcube Well-Known Member

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    Yup, I plan to buy within 30km to Melbourne Cbd. Just looking around springvale, williams landing suburbs. What do you think of those areas?
     
    Mcube, 14th May, 2017
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  4. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    What's your budget?

    Cheers

    Jamie
     
    Jamie Moore, 14th May, 2017
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  5. Mcube

    Mcube Well-Known Member

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    My budget is around $590k. Not sure what suburbs will be good in Melbourne for that budget range for a house.
     
    Mcube, 14th May, 2017
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  6. The Y-man

    The Y-man Moderator Staff Member

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    The Y-man, 14th May, 2017
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  7. Mcube

    Mcube Well-Known Member

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    Thank you. @The Y-man I have also been thinking whether a house within 30km of Melbourne CBD would have a better capital growth than a townhouse within 10km of CBD? Which suburbs would you suggest for a townhouse within my budget?
     
    Mcube, 14th May, 2017
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  8. The Y-man

    The Y-man Moderator Staff Member

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    You'd have a pretty major choice of townhouses/villas in the north (say reservoir, bundoora, kingsbury) or inner west (Maidstone, Footscray).

    Would it better than a house in say Dandenong? Hard to say - I'd probably err to a house if you can find one on a block bigger than 600 sqm (the magic number in Melb).

    The Y-man
     
    The Y-man, 14th May, 2017
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  9. S1mon

    S1mon Well-Known Member

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    Thats a crystall ball type question...

    Who knows...(no one).

    Melb you might get more years of rapid growth, canbera is more likely to be a slow but solid performer. I would guess both would do ok over the long term so hopefully you would do 'ok' either way.

    Land tax does suck in ACT, but i guess the post rate/land tax yield might be similar for both areas at the moment? Obviously depends what you buy.
     
    S1mon, 15th May, 2017
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  10. Mcube

    Mcube Well-Known Member

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    Yes, I am thinking of buying in each city first. I am looking at Melbourne this year because it might have some growth left.Sydney is too expensive for me and I already have a PPOR in Canberra but will still think about investing in Cbr in the future.
    Yeah, the rental yield in Mel is pretty low. It seems like Melbourne has land tax over $250k.
    @The Y-man what can I do if the land size is 600 sqm in Melbourne? Is there a way to check the land unimproved value of the block in Melbourne? Does Melbourne have oversupply of units? I was also thinking 2 bedroom units in suburbs like Flemington.

    Thanks so much for all your responses!
     
    Mcube, 15th May, 2017
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  11. The Y-man

    The Y-man Moderator Staff Member

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    In melbourne, a "unit" is usually a single story villa unit. Do you mean "apartment"?

    The Y-man
     
    The Y-man, 15th May, 2017
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  12. The Y-man

    The Y-man Moderator Staff Member

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    600 is the rule of thumb minimum needed in almost any council to be able to split into 2.
    Not sure re the unnapproved rate valuation for the land....

    The Y-man
     
    The Y-man, 15th May, 2017
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  13. The Y-man

    The Y-man Moderator Staff Member

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    The Y-man, 15th May, 2017
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  14. Mcube

    Mcube Well-Known Member

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    @The Y-man thanks for the link. Yes, it is seems affordable. Since it is under 600sqm, it won't be able to split it into 2 then. Yes, I was referring to apartments. I didn't know that unit stands for villas there. Lol
    Doveton seems more affordable but it is further out the city and a bit dangerous. I wonder it is going through gentrification too as more townhouses are getting built there? Cheers!
     
    Mcube, 15th May, 2017
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  15. willister

    willister Well-Known Member

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    Doveton is 31kms out! It's on the backend of a long list of scary suburbs. Next door is Dandenong, Noble Park then Springvale towards the city. Heck, I even think Clayton looks really run down.

    I think Dallas may be similar prices to Doveton. Kings Park and Albanvale in the West are probably slightly more expensive?
     
    willister, 15th May, 2017
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  16. The Y-man

    The Y-man Moderator Staff Member

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    I remember I went to a party in Doveton many decades ago, where the host said "If you're thinkng of drinking and driving, don't worry - your car's probably already been stolen". :eek::D

    The Y-man
     
    The Y-man, 15th May, 2017
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  17. Mcube

    Mcube Well-Known Member

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    Lol.

    Yes, Kings park and Albanvale seems to be a bit more expensive. It seems that Broadmeadows is affordable too? What do think Broadmeadows? Cheers!
     
    Mcube, 15th May, 2017
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  18. The Y-man

    The Y-man Moderator Staff Member

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    I am sure there would be a gap (possibly large) between what I think of the place and what it actually is like.......

    The Y-man
     
    The Y-man, 15th May, 2017
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  19. willister

    willister Well-Known Member

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    All suburbs under a certain threshold seem to need a bit of compromise somewhere. To be honest doing the courier rounds on my Sunday job, I feel most at risk in places live Doveton/Dandenong...Heidelberg West comes second. I really don't feel unsafe in the Western suburbs, despite a bad name.
     
    willister, 16th May, 2017
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  20. The Y-man

    The Y-man Moderator Staff Member

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    The Y-man, 16th May, 2017
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