Ppor in mill park at tip of cycle

Just recently bought in blossom park in mill park. This unfortunately could be at the top of the cycle but was cheaper compared to most across melbourne but of course its more than the prices a few years back. Any thoughts. Does anyone else have any thoughts on buying at this time in the cycle?

 

My folks are looking at buying there right now too. Obviously you can't expect huge gains but IMO Melbourne still has a bit to go, especially that corridor. Thanks to the super-high population growth (multi-years >100,000 people now) The building boom hasn't actually added crazy amounts of excess stock. There is so little on the market right now and Q1 is the biggest population growth time of the year. Last year Melb hit 38,000 new people between jan-march.

As long as you will be able to afford repayments when rates go up (forecasts range up to 6% by 2020) then i don't think you have much to worry about. Odds are you'll make a bit this year and at worst, lose those gains to come out neutral.

All the best for you new home.

 

If it's PPOR and you are happy with the location and the lifestyle living there will provide you, then all good.
If it were an IP you would probably look at it through completely different set of eyes.

 

I bought my PPOR in Mill Park early last year, just across the road from Blossom park, near the shops. My most recent valuation came back with an increase of $60k. Needless to say I was quite pleased with that considering it hasn't even been a year since buying the property.

I know Blossom Park is slightly more sought after so I think you did alright to buy in that area.

Ta

 

I was looking at Mill Park in late 2015 (live in Perth) for an IP and put offers on a few houses after flying over and visiting a bunch of suburbs. I was pretty serious about one but probably low-balled too much and the seller didn't take it. As I hadn't bought interstate before, I was nervous about paying too much. In the end, I went with a BA and bought in Flemington, an apartment in a block of 11. Good long term purchase (close to the City, no large apartment complexes close by, 60's building, really nice street) but short term, Mill Park would've been a better option.
I reckon we could've got the house for 410 and perhaps have it now revalued at 500.
However, this is all in hindsight!
Anyway, I think Mill Park is a solid suburb - close to a westfield shopping centre, high owner occupier rate, along the train line route and a bunch of other factors.
However, I'm not sure if it's hit the upper limit of its price growth (in the ST) - it appears to have had consecutive years of solid growth. I think in November 2015, it had already shot up 10% in the 6 months leading up that period after just talking to a bunch of RE's, and looking at recent sales. So perhaps too late if you want to jump in for some good ST growth. In saying that, I'm from Perth and haven't visited Melbourne much, so it could grow another 10-20%!

 

Really depends if its a PPOR or IP. As an IP the cashflow will probably sting as is the case for much of Melb and Sydney.

 

I'm no property expert by I can say with some confidence Mill Park still hasn't hit its peak. You can still grab a decent sized block for around $450 - $500k, granted it might need some work. Move down to Bundoora and you'd be paying well over $600k for something similar.

The fundamentals are all there as you've outlined and construction on the long awaited Costco has finally begun. It's literally a 7 minute drive from the Stables.

I think you've done exceptionally well to buy in Flemington. That suburb has well and truly sailed so I'd hold on to it for long term growth if I were you.

Ta