VIC Need help with a decision

Discussion in 'Where to Buy' started by Investaa, 31st Aug, 2018.

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  1. Investaa

    Investaa Well-Known Member

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    20th Mar, 2017
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    Location:
    Melbourne
    Hi Everyone,

    We are planning to buy an IP and we are unsure about below options:
    Our budget limit is 700k (even 750k is possible but we do not want to spend that much).
    Our goal is to be in a good high school zone in 10 years time.

    Option one: to buy a unit villa or a townhouse (2 or 3 bedrooms) in a good high school zone as the prices might go very high if we delay this purchase and might not be able to afford this later in 8-10 years time from now. this option will cost us our maximum budget.

    Option two: we buy a house in a cheaper suburb like Werribbe for around 500-550k on a 600m2 block, then keep it for 8 years and then sell it to have some fund available to purchase a property in a good high school zone.

    is our money work harder if we invest it on a house and are we going to have more equity? I know that units growth rate is not the same as houses.

    We have a PPOR and another IP as well but we intend to keep both and we don't want to sell them.
     
  2. Propertunity

    Propertunity Well-Known Member

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    You need to compare the past CG of houses in Werribbe with that of units in x suburb in the good school zone and do some research to see if past performance might be extrapolated 8 years into the future, or not. If you reveal suburb x, then we can easily find the past performance.
     
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  3. Cimbom

    Cimbom Well-Known Member

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    This can be risky as school zones can change if the school is particularly popular or over-subscribed. I'm not sure how common it is but I have heard of it happening. Maybe buying as close as possible to the school itself could be a strategy to limit the risk
     
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  4. Investaa

    Investaa Well-Known Member

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    Location:
    Melbourne
    thanks for the reply, I am looking into northeastern and eastern suburbs like Eltham and Viewbank
     
  5. Investaa

    Investaa Well-Known Member

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    Melbourne
    Tanks, I think is not that common for a high school to change the zone, some high schools don't have any zone. for example, Viewbank college enrolls if the college is the closest college to your place and is not based on the zone, his can be checked from the street directory website
     
  6. MikeyBallarat

    MikeyBallarat Well-Known Member

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    Ballarat East
    Do both at the same time and buy in Werribee south of Synnot in the Werribee Secondary College zone.