VIC Reservoir Or Sunshine West

I've narrowed my search to these two areas. Looking to purchase under 500k.

Both are a similar distance from the CBD with good transport.

In Reservoir I'd be looking at a townhouse or unit on maybe 160-200sqm of land in that budget.

In sunshine west I'd be looking at properties from 400-700sqm in that budget, with the potential to subdivide in the future.

I think the sunshine area has a pretty bad reputation which has land relatively cheap in comparison to reservoir and other suburbs. Does this area have good growth potential as it goes through gentrification?

 

I dont know to much about gentrification but i thought gentrification happened because of the growth of the area, new buyers forced out of other markets moving in, new infrastructure etc
This link might be of use, looks like Sunshine west has grown quite a lot over the last 2 years.
SUNSHINE WEST, VIC

 

I'm no expert by any means, so take this with a grain of salt ! But I think Sunshine West is great potential and we have been considering a similar investment - Sunshine itself does have a bad rep, but that is changing very quickly and it also has a lot going for it and is super popular with people who can't afford the inner west. Pros for me for sunshine west are - less than 15km to CBD, easy access to ring road / proximity to Sunshine and all it has to offer (shopping centre, markets, university, major public transport hub and good train line), the area is REALLY popular in particular with newly arrived immigrants who I believe make fantastic tenants..

Personally I feel like Sunshine West and Sunshine could kind of be compared to Footscray and West Footscray - when Footscray went nuts, that quickly flowed onto WE FO and now the median house price in WE FO is not much less than Footscray (back when we purchased in Footscray, WE FO was MUCH cheaper and less desirable .. now , if anything, it's more desirable - it obviously has a bit more going for it than Sunshine West does at the moment... but give it 5-10 years and I really think things will be different). So for me, I think the prospects for Sunshine West are really good and better value for money that way too - like you say, you can get a house on a block of land with subdivision potential for the future (just stay north of Wright Street / Sunshine Road - it gets really industrial and a bit nasty south side).

 

Thanks for the input.

I looked at a few properties in sunshine west today. I quite like the area. Looks like a lot of development and renovating going on.

Does anyone have any properties in sunshine west? Are there any issues with tenants or damage to your property? Vacant periods?

 

If I have to pick between the two, I would choose Sunshine west, especially if you can get 400-700 sqm property for under 500K. I think that it's quite a good price in comparison to the neighboring suburb Sunshine.

Check out this property.
Bought in 2008 for 370k, was not sold in 2014, and today sold for $1,050,000 in auction. That's nearly 3 fold in 8 years, not bad for a capital growth.

14 George Street Sunshine Vic 3020 - House for Sale #123815666 - realestate.com.au

Anyway, that's just my personal opinion, might be bias as I own one in sunshine.

 

I brought a place 2 yrs ago, I made easily 100k.
Vacant period is around 1 month.

 

Sunshine and Reservoir has seen massive growth still rising I think. Developers been jumping into both these areas and have achieved record prices. The only thing is we are now close to peak just my opinion

When the development sites no longer make sense then developers stop buying. Saw this happen in Perth recently.

 

I agree it is near the peak. Got 2 blocks side by side which was bought ard 1million ish and rezoned ard 1200sqm which is near park walking distance to uni ard 3 months ago.

2 weeks ago similar double block just down the road went for 1.6+ million. Though lots and lots of demographic changes are happening and new devs being bought up bigger developers.