purchase options

I am ready to finally purchase my first IP.
Max purchase price budget it 460k.
If budget was 30-50k higher I would ideally buy an old house on a 600m> block, and rent it out, then split it in the future.

But budget is only up to 460k, so that has gone out the window.

Realistically, my options are

a) Jacana, good sized block, 3 bed ex commission home on a 600m block (however a lot are the nice brick ones that come up nice renovated). One of these went a few weeks ago for 379k, which seemed like a bargain to me (was in great condition, floors already sanded/polished etc, they tend to go unrenovated for 380-450k depending on block size.. Jacana in general seems to be a whole suburb of ex housing commission stock. It is the suburb between Glenroy and Broadmeadows.
I actually really like Jacana, only problem is stock is rare, seems to only have 2-3 listings at any given time. I think the whole suburb only has about 800 homes.

b) 3 bed Ex commission house, in the ex commission part on 600m block in Sunshine West. Would likely pick one up for under 430k

c) May possibly pick something up in Sunshine North or West that is in poor condition, but in the non commission area but would likely come in at the 460k if I was lucky enough to get anything. Would leave no budget room to do any improvements, which in turn would mean lower rent.

d) Glenroy, house already split on a 400m block (would try to pick up unrenovated/half renovated if I could get it for around 400-415k (just saw one of these listed (after reno) for 470-515k, though this may be a one off.

I am just so lost and can't figure out which direction to focus on.
Would appreciate member's opinions.

 

Are you sure VIC is the best option? Plenty of other markets.
Melbourne approaching peak by all accounts.

 

It is my comfort zone as I am on the ground here. Personally I just feel safe here as I think it still has room for growth considering houses here are 1/4 of what you get in Sydney for the same distance to CBD etc. I think if Sydney could grow that much than Melbourne has lots of room to move.

 

But if you were going to just go for houses that were affordable compared to Sydney, you would be buying houses in whoop whoop.

 

I think what I mean is that Melbourne has everything Sydney has going for it, yet it hasn't hit its ceiling yet. In comparison to the regional cities and towns I feel it is a safer bet as it has the economy to do well. I think if we can still buy for under 500k within 20k of the CBD, then we still have a long way to go. Woopwoop is different in the sense that there is not the employment and population to support.

 

Yeah, if you're familiar with the market it's better.
But I've heard the market has been pretty warm down there for a while.

 

I've been looking into Jacana recently as well, I'm a fan of small pocket suburbs and feel their image can change quicker (idk if it's true but). For the price and proximity I feel it's got plenty of upside.


How long are you looking to hold for and what are your goals with the purchase?

 

I'm looking long term hold, though the ones I'm looking at need a decent Reno for them to be even close to attractive for tenants

 

Ask @MTR and @melbournian

 

i saw one today in inspection. 12+km to melbourne CBD. 420-480K range 500sqm.
There seems to be the orginal owners which had photos. Also had a studio with bathroom and kitchen in the back which can act as granny flat. Interesting, the owners originally build this house maybe 50+ years ago as there were photos of the house when it was originally build.
on auction. It ticks all the boxes for future subdivision, near a park and with the granny flat extra rental plus the condition was pretty good in spite of being old. The only drawback was it was 4 houses away from commercial area (factories).

 

Wow wheres that?

 

They quote that I bet it goes 520-550k

 

Doesn't look too bad.
Is that size block of land typical for the area?

 

it might but i think drawback of factories which is 3-4 houses away you can see it from the backyard. Still i think better factories than powerlines. You never know if you never give it a shot. It may go higher it may not.

 

@melbournian how much did it end up going for?

 

it's on this sat, i will going to have a look and scope some other properties of interest.
Dunno - i feel weird i rather go to auctions than go to the movies.

 

haha will probably be at some of the same ones!