VIC PPOR - Melbourne under $650k?

Looking for suggestions regarding a neighbourhood for PPOR - young couple 1st home (2 bedroom plus), within 1 hour commute to CBD, pref with established infrastructure within walking distance - train station, leisure centre, a small shopping strip, market, cafe and green space to go for walks in the summer evenings. Have lived in North (Coburg), West (Footscray) and East (Heidelberg Heights) previously but these are all out of my price range. Not keen on apartments or town houses, would prefer 400m2 plus. Areas I keep an eye on at present: Jacana, Broadmeadows, Hadfield, Fawkner, Heidelberg West and Watsonia. Any other suggestions welcome, thanks in advance!

 

One hour by train or car? Craigieburn might provide better value, if you’re okay to build then Rockbank, then there’s always Melton or Bacchus Marsh- 45min train ride, much more bang for your buck there. Can get to the city in less than an hour, just not in Peak traffic (unless you have a motorbike).

 

Sunbury established house as close to station as possible?

 

Cost of tickets isn't an issue: Bacchus Marsh is at the end of Zone 1/2 so a single to the city is $4.30, probably one of the biggest bargains in PT. Frequency is an issue, overcrowding of trains the result. There are massive works going on to duplicate the line to Melton and build additional passing loops but that's just playing catch-up.

 

Id be seriously considering Glenroy! Very well serviced. By transport and I can see gentrification happening, Pascoe vale rd shops will become trendy in no time.
My opinion only

 

Hence why I bought in Melton South, 10 minutes walking distance to the station.

 

I'm not a city person. Everything I need and more is right here though, including everything and more that you have listed. Just not 1 hour from the city, and I am absolutely fine with that.

For a first home buyer, I'd be more inclined to look a little further afield so that mortgage stress is not an issue. Just insure there is a good rail service in and out of the city, and you can study/chill on the train rather than end up in grid lock traffic on the way into the city. Weird thing is that it can take just as long in a car to get into the city as it can for the train to get there, and you don't have to worry about parking. It's better than being in a cramped tram too. There are packages with v-line where you just buy a weekly/monthly ticket. They used to have the option of having a frequent commuter tickets for people traveling in and out daily.

Quick cost analysis-
$600K loan- Costs $992,343 (25 year loan, 4.42% interest). $3315 a month repayments.
$300K loan- Costs #496,191 (25 year loan, 4.42% interest). $1654 a month repayments.

Obviously, taking a home further out means that you would have another $1661 a month freed up. Or, you can look at this as $19,932 a year. You are not going to pay anywhere near that on travel costs.

It also means that you can be a little more strategic. Just throwing it out there, I think that the amount that people can comfortably afford to pay for homes $600K+ in the city is diminishing. Meaning that there is going to be less of a market for houses at this price point. My 'thinking' is based on our current stagnation in income, basically just keeping up or falling behind with inflation. So while these area's have typically done well, I hardly think that it is a hot spot for further growth. In my opinion, and one that is probably going to be shot down by a heap of people. But the figures are the figures. So, while being more strategic, I would buy not one home but two houses further afield, where you can still get in and out of the city easily. No more than 2 hours by rail. Now, with living in one property, you are minimizing your expenses and the second property is for investment waiting to go up in value while you are living in the area, and also provides a savings plan of sorts above what the bank can offer in a term deposit. Provided that you select two properties that are able to have a rental yield of around 6-7% they should cover all the expenses. It also means that you can effectively save that $19K a year, or if your income drops or you have some kidlets it provides a buffer so that you don't experience mortgage stress once you go down to one income.

There are some fantastic vibrant towns outside the city that will meet your needs, and long walks in green areas on summer nights won't be a problem and the cafe/restaurant culture is strong ect. Not to mention gyms, fitness centers... My favorite (parkruns within 5 minutes of home on a Saturday morning with gourmet breakfasts and good company afterwards ect, ect). Schools where parking is not an issue, and your not fined for trying to pick up your children safely. Childcare options and the ability to have a place. Drop off and pick up's with kids in the car in grid lock traffic is frankly my worst nightmare. And I love the country! LOL. I'm so biased. But hey, good luck with all your choices

 

Excellent post. I live in Ballarat myself and I can echo all your sentiments.

I do just want to add those mortgage savings you mentioned would be further improved with 100% offset account.

Use this https://www.investmentpropertycalculator.com.au/free-mortgage-offset-calculator.html and plug the numbers into Excel.

 

Wow, thanks for all the replies, will give them a read through and investigate further!

 

You can consider the following areas:
1. Point Cook in Alamanda zone: new shiny house but smaller land content, good school (Western suburb standard, not the East). Downsize is not easy access to train station, traffic to and from the freeway.
2. Seabrook near the primary school: nice and quiet area. A short drive to several shopping centres in Point Cook.
3. Hoppers Crossing: either choose a house near the station (demographic is not so great) or Cambridge estate which has much better neighborhood and very close to the big shopping mall Pacific Werribee where you can find almost everything you need (except the luxury ones like LV, Gucci, etc.).
4. Werribee in the south size of the river, try to find something on or near Wattle Ave which have very nice houses, good neighborhood, nice shopping strips and cafes/restaurants) not far from train station.

Personally I would choose the last two options, less than 40 mins by train to Flinder, 30 mins driving to the city off peak, has all the amenties, established community and infrastructure.

 

There is no house for $650k in Glenroy. Only townhouses for that budget.

 

I’m not a fan of new houses myself, but Hoppers Crossing or Werribee southside are great alternatives within budget.

IMO an 80s style house in Hoppers will be more spacious than a new house, built better, and have much better land content.

 

If you want to be as close to the city as possible and keeping with your above criteria then heiund85 has nailed it. I personally also like Sunbury as you are still getting good value in lifestyle and decent homes for that's price.
You buy between 500-650 in Sunbury and get what you're chasing, being a young couple I'd probably lean towards a 3 bedroom home in case you have kiddies, and always 2 toilets as most buyers chase this in case you end up selling in the future.

Something like this...
7 Prospect Court, Sunbury, Vic 3429 - Property Details

 

To update on this, after accepting a new job in Epping we are now looking at Broadmeadows and St Albans, leaning more towards St Albans as seems to have more cafes/small shops etc but we do like the parkland side of Broadmeadows.

If those in the know we're able to give opinions comparing the two it'd be most appreciated.

 

Grats on the new gig. Considered Craigieburn? Much closer to Epping than St Albans.

 

Have you looked at Westmeadows? You should be able to find a decent sized 3 bedroom house for around 600k. The yuroke creek trail runs through it. Close to broadmeadows but more greener.

 

We did have a look there and the parklands are great, lacking shops/infrastructure a bit on the side we can afford, but that will prob come with the new build village, the "old broadie" side is pretty good though. Also looking in Bundoora now, sure we'll find something sooner or later.