Newbie in IP - looking to invest in Werribee victoria

Hi I am new to property investment. Looking to invest in Victoria for growth. If it allow then would like to have rental yield as well. I am currently looking into werribee area in victoria. I would request to share insight and i fo if werribee is hood upcoming suburb to invest it. Also please suggest some alternatives. I am looking to invest upto 550k with prospect for fiture growth in 3-5 years
Thanks heaps.

 

What will you do with it after 3-5 years? What would you consider to be good growth per year?

 

Where markets ( potential growth) will be in 3 to 5 years is anyone's guess. And really all anyone can do is guess when it comes to timeframes.

Focus on the fundamentals of the area you are looking at and try to buy the best overall deal possible to hold long term. If you get surprised by great growth in the short term it's a bonus. But for best returns with residential property ( most of the time) it's first and foremost a long term holding asset when you are using the BnH strategy.

 

Welcome @Ashjan

 

Thanks

 

I would like to sell it for capital gain. I would consider it a good bargain if I can get price doubled by that time.

 

So the reason for my question is to see how realistic your expectations are.

doubling in 3-5 years means 14-24% growth a year.

think that is realistic? The recent sydney cycle was maybe 7-8% a year and that was already considered a massive boom.

longer term? 5-6% gains a year would be an incredible result.

 

Thanks for the inputs and like I said I am newbie. It's great to align the expectation and desire outcome. What should be the reasonable time frame to get best outcome considering 100% mortgage on IP.

 

No idea. You have no realistic view of what the best outcome is. What does 100% mortgage on IP have to do with anything?

Suggest you do a lot more reading to get a feel for historical returns.

 

What I mean by including this is that we would be paying interest as well on the property. Interest would lower the returns. Am I correct to say that while considering overall returns.

Thanks. I have started with this forum as well as a few books.

 

Good start.

 

Hi Ashjan, I bought a 3-bedder old house on 580sq.m in Werribee 6 years ago at $320k, now valued in the range of $500-$550k by different banks. Rental at $350/week. Price hasn't doubled, but I'm happy with the rental yield & capital growth

 

That's very good growth , nice one!

 

Still a newbie. Still learning

 

Me too the learning never ends really.

 

Thanks a lot for sharing the insight. It's good growth. Do you think it would continue even at this rate for next 6 years?

 

I wish I am a fortune teller