VIC Melbourne property investment

Hi, I'm looking to purchase my first investment property. Am thinking something within 10-15ks of Melbourne, most likely a new townhouse. Would like to keep it under $550k. Any suggestions as to some suburbs to consider? Obviously looking for long term growth, & steady rent in that time. Can anyone give me some insight into Coburg? Thanks for your time

 

Hi KoBro, welcome to PropertyChat!

I think Coburg Property Market, House Prices & Suburb Profile is a good source of high level information when beginning your research.

Personally I like Coburg, it is a fair way down the path of gentrifying, and for it's distance from the city you can still pick up some less expensive properties.

 

Hi Kobro,

The most important question is what are you trying to achieve from this investment? If you are looking at a buy and hold strategy I am leaning towards a town house.

 

For long term growth, go for

Closer to cbd
Neat transport hub
Land component

Agree with @Simon Moore about Coburg.

 

Thanks for the responses. We actually were thinking townhouses so thanks for confirming that. Would be great to be put in touch with some developers, thank you we are looking for a buy & hold, looking at long term strategy. Capital growth over the long term, but in the short term a place with minimal vacancy (so high demand area). Trying to reduce as much risk as possible! Budget approx $550k, give or take, 3 bedroom, close to cbad, train station/tram.

 

I would personally be more inclined to move further out and manufacture some growth as opposed to buy and hold.
Melbourne is arguably near the top of its cycle not to mention what may happen with negative gearing. Do you really want to be stuck holding something that may not give you any growth for who knows how long?
You buy a brand new Townhouse and that's it, your at the mercy of the market.

I would much prefer holding something I can work with as required. Renovate, subdivide, develop, creative cashflow such as granny flats.etc
I really believe a brand new townhouse in Melbourne at the moment is a bad play. Just my opinion

 

Hey @KoBro, I'm looking for the same kind of thing. We pay a lot of tax so our holding costs are a lot lower with a newer property.

Albanga might have a point though about this being a bad time to buy a townhouse. I'm still thinking about that. I think you/I need to try and look for something that will be attractive to owner occupiers.

 

In certain areas town houses are becoming more popular with home owners. just have to target the owner occupier style of TH rather than an investor style. (Investor style are Smaller, cheaper, more on block, not as high end in finish, occasionally not so great floor plans. Owner occupier style hit all the right spots for home owners, larger, nice finishes, no body co if possible, good entertaining area, light, spacious feel)

 

Yep, I've noticed there is such a big range in town houses. Some are more like apartments and some are very like normal houses, just newer. Is there a standard definition?

 

@Esel, every area is different unfortunately. You have to assess the demographic and what is acceptable, in demand and not acceptable and not in demand in each area. There's no blanket rule you can apply across all areas unfortunately.

And yes, you're right, many newer townhouses are more like apartments in set up and size these days.