Melbourne...the steady market in Australia?

Agree with @sash with more and more Chinese and Indians buying in the area only means one thing in a long run small Chinatown pockets will appear similar to the doncasters and glen Waverley of the east which in turn will attract more to the area.

 

It already is....very high Indian population in Point Cook...the Mumbai of Melbourne...they lie new homes....they are also buying up big in Cranebourne East, West, and North as well as Clyde North. Some are in Officer and quite a few Packenham. In the North it is Craigieburn.

 

I will be in Melbourne tomorrow

It's going to be a big weekend in my area. 4 similar properties are going on the market within an hour of each other. I'm going to 3 of the auctions.

 

An I'll be there on Sat-Mon.....interesting....

 

We will be heading in different directions. I am heading North East.

 

Great...I don't like competition.

 

lot size correction is probably driven by developers releasing only couple of >500 lots and lots of 370 and below lots. they want more money out of there parcel of dev land for obvious reasons. i guess the future holds this way that any buyer of exec class or garden class would love a large lot and budget class would end up with small lot. either way buy large if you can or else small lots are plenty around anyway.

 

@HomeMinister it is true large lots holds for higher prices for suburbs like glen waverley, doncaster and even clayton but for point cook, williams landing etc i think it is the reversed.

i saw many cases of doncaster and even clayton selling 1.4-1.5 mililon for large lots 900sqm as land is limited in those areas where else in those western areas on upcoming suburbs like pt cook it won't make a difference at all as why would u buy 650sqm lots with a house for close to a say 800K assumingly. Maths wise as you said there is lots of land available you could just buy 2 side by side 320sqm lots for 500K and build a house for 200K and you still below 800K.

 

@melbournian yes you are spot on one cannot buy large lots in doncaster or glenwaverly hence one buys in west a large lot and lives his dream well. moreover lots of 650sqs are not 800ks they are only selling for 100k more than a 400 sq lot hence make great value to buy. yes west has lots of land but no one dreams to build a house in one street and garden in the next street. your house is what you get to dig not someone elses acreage.

 

@HomeMinister great discussions. if you wanna buy large lots to live your dream then that is a different objective altogether. my rationale was investing to make gains. personally large gardens do not concern me and to a lot of investors too. The numbers were hypothetical for the west - but for analytical purposes give you a live example.

5 Wildcherry Place Point Cook VIC 3030
--------------------------------------------------------
2009/2010 purchased land and turnkey 558K (with land tax) appox 600sqm
2015 - Sold 565K.

with council rates, lmi, repayments, utilities (purchased as PPOR) that would be negative gain.

------------------------------------------------------
where else n the same estate of pt cook
2010 - purchased land and turnkey 365K ( started build in 2012/13 with land taxes, rates repayments etc) - 303sqm
2014/2015 - Sold 415K

which would i take - anything that makes a gain.
i'm with @sash get ok size plot 300ish - throw a cheap house volume builder 99-130k add some upgrades 10k, let it rent, get the nice big depreciation report and throw any issues to the builder (for the nice 7 year warranty).

 

@melbournian yes in this instance the bigger lot is a bummer and reasons are obvious who ever paid for land has paid way out of median price and it also depends on quality of finish and other goodies. your 303 sqm example seems to be a well planned strategy done purely by investor where as your other example looks to be done by newbie investor or FHB with too many holes on capital. end of the day an investor cannot pay more than median and infact way below median is the best investor strategy.

 

@HomeMinister spot on. 600sqm lot was bought by my friend as a FHB. 303sqm was my lot. median is an important factor

 

on a different note: who can build a house for 130k? any names would help me plan my next venture.?

 

Try dennis family homes - they got 1.5k off. or JG kings or Burbank. At one stage, dennis family was offering 99K. you have your usual site costs and exclusions but you can do it cheaply urself.

 

Thanks

 

+ Narrewarren, Watergardens and starting to get into Blackburn and Clayton

 

I forgot to add Mill Park and Reservoir and Epping

 

...all suburbs which have grown a bit thus the push out....

 

...and the push out further North also...

 

Graphs for Point Cook. Mostly families. Lots of first generation migrants from Asia, Europe and others who moved from Yarraville/ Kingsville or Clayton side when it offered new H& L package in 200-300K range in early 2000's.

Werribee hospital expansion and two more hospitals planned for east Werribee area