Hi, I’ve thought I would start a journal of my current search for my next IP property. Even though I have started my search a couple of months ago I’ll start posting the summary of every weekend starting today. My plan is to try to find something that matches my criteria in Melbourne by the end of November. I’m looking for a house in Brunswick, Ascot Vale, Coburg or a villa in Sandringham, Brighton or Hampton. The budget is 850k. My goal is long term capital growth with a rental yield of approx. 3%. I would like to find a place I can add value to and that has high land value. If I can’t find anything by the end of November I will engage a BA and get something in Brisbane in a suburb like Keperra, Stafford Heights or Michelton for around 650k.
Weekend #1 Properties inspected: 5 Property 1: 2/14 Brickwood Street, Brighton, Vic 3186 https://www.realestate.com.au/property-unit-vic-brighton-134493614 Pros: well located, plenty of light Cons: small backyard area, looks like an apartment pretty much Comments: it’s a no go for me Property 2: 6/35-37 Littlewood Street, Hampton, Vic 3188 https://www.realestate.com.au/property-unit-vic-hampton-134612370 Pros: well located Cons: 12 units in the complex, small backyard Comments: it’s a no go for me Property 3 11 King Street, Hampton East, Vic 3188 https://www.realestate.com.au/property-house-vic-hampton+east-134693482 Pros: good land component Cons: close to main roads, funny layout Comments: it’s a no go Property 4: 145a Albion Street, Brunswick, Vic 3056 https://www.realestate.com.au/property-house-vic-brunswick-134692770 Pros: location Cons: small outdoor area Comments: nice property but does not tick all the boxes. Property 5 5 Richardson Street, Brunswick, Vic 3056 https://www.realestate.com.au/property-house-vic-brunswick-134678266 Pros: well located, nice backyard, secluded on a no through road Cons: land is approx 160 sqm Comments: tempted to place an offer but not crazy about it.
I have lived and loved Melbourne. But right now, I’d invest in Brisbane over Melbourne. Timing is everything in property investing, not just time in the market.
Agree it's the best of your shortlist so far. My only -ve on this IS the backyard The deck is going to require ongoing maintenance from you (yes, the LL) and so is controlling that vine clump... (the tenants will try but will be overwhelmed...) Looks like the house originally had a separate lounge, and the wall was punched out to make that living area. I suspect you can easily turn it into a 3BR putting non-structural walls back in. Good location close to multiple PTV routes. Tenants should be eligible for a street parking permit too - check council website. Let's see if the auction stays anywhere near the range - with pent up demand, it could clock well over $900k The Y-man
I’ve been debating this in my head for a few months now. Agree Brisbane looks more promising in the short term. I will only buy in Melbourne if I find something I can add value too.
Very good points! I didn’t realise about the 3rd bedroom. I will place a pre auction offer and see how we go. I’m not interested in being part of an auction.
Good history of capital growth, close to public transport, good demographics (Coburg a bit behind on this).
When we bought into AV in 2015, we went for "lack of recent CG" as the reason. At the time, the surrounding subs had gone up tremendously - esp M-Ponds. So we figured there was an "arbitrage" situation existing where AV had been "left out" but would catch up. The Y-man
Weekend #2 Properties inspected: 3 Property 1 (reinspection) 5 Richardson Street, Brunswick, Vic 3056 https://www.realestate.com.au/property-house-vic-brunswick-134678266 Pros: well located, nice backyard, secluded on a no through road Cons: land is approx 160 sqm Comments: inspected this property again. As Y-man suggested the layout allows to convert the lounge into a 3rd bedroom. Got a copy of the Contract. The agent asked me for a few days before she figures out what the demand is before I place an offer. I’m thinking it might be actually wise to place an offer regardless and give 72 hours for a response. The offer would be in the upper side of the bracket. Property 2 33 Hanover street, Brunswick https://www.realestate.com.au/property-house-vic-brunswick-134653958 Pros: approx 240 m2 of land Cons: Needs some repairs, small kitchen Comments: the seller wants to go to auction. I’ll come back to this one only if the auction is passed Property 3 15 Ford street, Brunswick https://www.realestate.com.au/property-house-vic-brunswick-134730254 Pros: good land component, plenty of opportunity to add value Cons: I’m not sure I will get burnt with the renovations Comments: interesting option, I’d consider to place a low ball offer.
So I've started my search in Brisbane via a Buyer's Agent. I'm about to place an offer (around 600 k) in a post-war house in Ferny Hills, which is 1.4 km from the station. What's your thoughts on this type of property in Ferny Hills? Thanks
Can’t go wrong I think, very owner occupied area, on train line, better than Ferny Grove as I’m told. But 600 k should give a better than average house, solid highset brick, decent quality on 600 sqm? And push your BA to negotiate hard down to the dollars hehehe...
