VIC Melbourne? townhouse vs apartment / where? Need a broker.

Hello Everyone!

It’s been a while since I last posted here and few things have changed recently. I’ve moved to Melbourne 2 months ago and have been able to save up a decent amount of deposit (single income, 29 years old) that I could put forward for a property in the near future.

My plan is to hopefully buy a property (500k-550k) in the next 12 months and I’ve been doing some research to figure out what would be the best move for me ahead. I am bit all over the place at the moment as I am not sure what my borrowing capacity is at the moment, with my salary, deposit etc. When

Ideally, I would opt for a property within 20-30 minutes away from the city by train/car. Preferably I would like a townhouse but I wouldn’t get my hopes up since it’s very hard to find some within the price range in the suburbs where I am looking. I been looking around Moonee Ponds, Coburg, Pascoe Vale and similar.

An apartment would be a more affordable option but I have heard some disappointing build quality stories of people that own new apartments, which makes me feel less confident about the future of prices and also potential building problems that would result with me having to cover more expenses with the strata in the future.

I don’t mind if its either south side or north side, I have been looking at apartments primarily around St Kilda area, Brunswick, Moonee ponds and few others while for townhouses, I see some sub600k around Pascoe Vale.

Also another suburb that looks interesting is Caulifield South & North, there is a nice range of apartments for around 500-550k but I need to do a bit more research on the suburbs and see if its for me or not.

Lastly, another alternative is to buy a house, live in it for 12 months and then rent it out and move elsewhere (Id like to live in an area where I could go out for a dinner, drink etc. without having to drive half an hour).


So, long story short, ideally buy a property for around 500-550k in a suburb with good reputation, close to the vibrant suburbs and all the other things that make Melbourne a great place to live.

I will also need a recommendation for a broker as I will need to talk in regards to my financial situation to find out what my options are, and also provide guidance on how to move this ahead.


Sorry for the long post! Thanks all!

 

It's certainly possible to purchase a property in the inner suburbs for under $500k. One bedroom apartments should easily fall into this category, but you can still get two bedrooms at that price point.

I'd strongly suggest going for at least two bedrooms, one bedrooms have limited appeal growth and resale value.

Keep in mind that with the criteria of 20-30 minutes from the city by public transport, there are some locations as far as about 20km that meet that criteria when using express trains.

 

I would consider rentvesting - buying a house with land in outer areas, living in it for 12 months to use tax incentives and then renting it out. You can then rent in a suburb where you desire. I would advise strongly against any type of apartment if your goal is to have a decent capital growth. If you must, look for older style apartments, and apartments with special and interesting features (like art deco apt's in St Kilda or Elwood) with a possibility of adding value through renovation.

 

Am in a very similar situation and looking at similar suburbs as well, so following this thread. For a really good townhouse I’m starting to do some research around Maidstone.

I haven’t been on the ground yet but it appears to stack up. I also like Coburg and even further, Preston/reservoir for townhouses.

How has your search gone for apartments @theigor ??

I’m really struggling to find some 2 bed ground floor or brick walk ups anywhere inner city or within 6-8km for that budget. Something that you can add value too anyway, all seems to be new units or 2-3 stories +

 

Yes, i agree. I would not go for a 1 bedroom apartment unless it truly offers something special ( i really like the older warehouse conversions so If a building is good and the apartment is spacious, i could go for that) but mainly looking at 2 bedders at the moment. What are some of the suburbs that you would recommend i should look at? I have a friend that lives in Caroline springs so that is one suburb that i could go for but it is slightly beyond my price range from what i see online. If i buy that far, i would prefer to get a house instead of a townhouse.

Thanks @chinchilla. That is another possible alternative that i am considering. I have been looking at areas such as Caroline Springs, Werribee and Keilor downs. If i go this route, would it be better to look at established suburb like Caroline Springs or some areas like Werribee that are still releasing land and are not as established yet?

Hey @Codie , looks like we are in the same boat mate!
I haven't been on the ground either, however I plan to start looking actively once i have the ballpark of how much i could borrow, which should happen fairly soon once i start talking to a broker. I'll have a look at Reservoir & Preston today, looks like that would fit the budget nicely. The thing is, i just moved here so still very unfamiliar with the suburbs and areas, and with not having a car yet, its hard to just drive and get a feel for the suburb.

 

Pete who responded above is worth a chat if you need a broker

There's heaps of really good ones on this forum so have a read and see who you click with.

 

Hey @theigor sorry for late response - I overlooked your post by accident. Being a first home buyer who wants to see some capital growth in next 5 years and is risk averse, I decided to stay away from suburbs where near to medium term capital growth could be at risk due to lots of available land around.