Melbourne Outer Growth Areas $12/hr

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Hi Sash,
I am looking at Werribee for fhb h+l. What should I be paying at this stage of the game? Or should I be waiting it out for prices to fall. Currently renting so keen to get in to a 3 bed on approx 4-500sqm. Will be my ppor. Keen to hear your thoughts. Cheers

 

Yep,
2x Pakenham built 2016 to keep
2x Pakenham under construction finish jug/aug 2017 one keep one sell
1x Beaconsfield under construction finish end 2017
2.5 x Cranbourne North bought 2015 flicking off plan now
1.5 x Rockbank selling the half off plan building the one around 2018 finish late 18/early19...

Sitting on silly gains, if market corrects still should be solid... all 80:20 purchases with the 20 coming from either uplift or other flicks or development.

 

Noice.....

 

Can someone please explain the attraction of Armstrong Creek? It's not near the beach and it's not near Geelong. There is vacant land between it and the beach. And vacant land between it and geelong. It's like being stuck in the middle.

The first land release that my friend bought was $245k. You could have bought in Torquay at the same time for cheaper (which has now gone up 100k)

 

That's quite a bit - close to $600 per week (how big is that place?). Airbnb is the way to go - so many ppl doing it, if you think abt it - if you only have 3 days lease out at 249 per night that would be more than enough to rack in 750 per week) and anything else is a bonus. I have been exploring this to use my superannuation to do so but couldn't find the time resource to look into properly

I know a guy sharing rooms paying 1k a month per room for a 3 bedroom (so that would be 6K per month) since there are 2 ppl per room. if you calculate the returns in rental that is like 72K rent gros per year. One thing a lot of ppl dun realize is yields in Melbourne are very high for apartments as the price hasn't really moved and stayed stagnant for a long time. Similar apartments would be 1.1-1.2 mil in sydney for what is 500-600K in Melbourne paying similar rents

 

The rise to $300k continues @sash @Connor I remember only 3 years ago they used to tell me that $200k was the ceiling for Melbourne growth areas. Since then median lot sizes have decrease about 20% and we are getting closer to $300k.

 

Yep sub 200 is disappearing in Werribee.....

 

And yet to be impacted by the the zero stamp duty changes for FHB's in July... It could go close to breaking 300k by the end of the year..

I was at an estate in Point Cook today, they pre-released 15 lots to their VIP list last week... All snapped up before going public, except for a couple of irregular shaped lots. Prices were up around 35k from their last release in March. 350sqm selling for 380k...

I'm close to doing a deal in a neighboring estate with about 140-160k equity on completion....just waiting on the previous lot buyers deal to fall over.

And sub 400k Werribee H&L is disappearing too. Exact same H&L I put together in Jan for 340k, is now on RE.com for 409k.
Others that were advertised at 360k in Jan, are now also 400k plus

 

I heard woodlea are slowing their sales rate to 400 per year and pushing for price growth. That will probably see a 400m2 lot at $300k by years end. Bridgefield will be sold out by years end too.

 

Yesterday I got told a developer of a sold out estate in Mickleham ran so late in registering titles, that they used the sunset clause to cancel all their contracts.
The subsequently reoffered the lots to the market at prices up to 90k higher. Giving their previous purchases 'priority'.
I can't recall the name of the estate, but I know there's legal action being taken against the developer from many of the previous buyers.

 

It's Heritage Views. The purchasers have no chance of legal action. They got their deposits back. The sunset clauses expired. The developer was unable to deliver inside the sunset clause period due to servicing and finance issues from what I understand.

 

Wow! That's daylight robbery? So the purchasers who thought they had their foot in the property market years or months ago when they signed their contracts now find that they actually do not, and get no compensation? Seems like developers can use this sunset clause to landbank then... and just wait for values to keep creeping up, cancel the contracts, sell at higher prices, rinse and repeat...

 

Yes and no. It sucks, in this instance, but it is designed to work both ways. As a purchaser the law thought it was unreasonable that you could buy something and be on the hook to settle it forever and a day.

Also would it be fair if I sold you a lot before I got a permit, and then i got delayed by council for 2 years and in that timeframe I end up developing your Lot at a loss. Or I can let the land fall over and re sell it and make a profit. What would you do???

 

Would the turnkey builder do one on a subdivided land lot?

 

Very well done you both!! @Cactus @sash

 

Depends where like if u ask a Epping builder to build in Frankston unlikely

 

In Werribee?

 

Might be a bit far
Try this company I saw there had homes 132k

Australian Building Company

 

Thanks!