VIC Reservoir >Thomastown >Lalor for IP

If you are happy to do this then you are happy to hold when markets correct, markets do not rise every year, this is a fallacy.

Anyway not here to persuade you either way, once you have been through several cycles you know more.

MTR

 

you make it sound like 6-7% annual increase is lacklustre - these numbers are more in line with long term growth.
Why do some Australians think that property is the only way to invest?

 

It’s lack lustre only if you compare to the annual increase in the last 5 years

The 2 easy ways of investing are in stocks and properties
Both are at historic highs and it’s now choosing between the lesser evil

Cheers

 

@James Baker
all i am going to say in my humble opinion and i'll share this email from the Victorian Planning authority since i will not be acquiring anymore sites - if they're planning an intergrated transport link into the reservoir side from latrobe uni -and making places mix commercial leave will prices go up or down?

Yes i agree with @MTR - the boat has sailed for reservoir in the likes or oakhill estate and other parts of reservoir but definitely not the renewal areas like this

 

ASX 200 is lower than it was 10 years ago, but the overall PE ratio doesn't make them cheap. In other words, Australia has gone nowhere in last decade

 

Here is another way of looking at property markets and whether they make sense.

Median house price of THOMASTOWN -
$587,000
$35,000 (stamp duty)
$622,000 (Total Cost)

$360 (rent per week) according to realestate.com

Gross Yield for year (3%) also confirmed realestate.com.

Now how many investors could afford to be holding property in Thomastown with these yields.
Interest rates have already started rising.

Do the number of Reservoir yields, it does not get any prettier.

MTR

 

Have not looked at any of those sectors as I am a newbie and would not like to venture into those muddy waters

Cheers

 

i think if you yield is the focus

you better off buy a 1 bedroom and furnish it close to spencer st for 400K all up and get $1000 per week in short term leases. ppl actually live off their short term leasing apartments if you believe.

either way there has to be trade off CG or yields.

if the focus is more a balanced trade off then - you're better off going to SEQ - to make calculated gains and balance it off with returns. although with the restriction on granny flat with minimum plot sizes in logan is really something that can affect the market.


IMHO- my personal experience is to squeeze the maximum gain out of every investment i make.i agree what @Leo2413 said about having positive mindset for personal self motivation coz you need it going forward. once upon a time, i was once refurbishing apartments for resale and rental in melbourne CBD, southbank, south melborne, carlton etc. Everyone knows that apartment market was flat for decades in melborne - yet i was able to achieve record prices for the highest sold in the building, sometimes making a 6 figures in 3-6 months (not equity - actual net sold price). You take a negative and make it a positive by turning it around. and in my opinion, these growth zone sites and ACZs if done correctly is opportunity that should be looked at more seriously. You're talking average growths or making 7 figures growths.

As for yields - i have 2 ips in the growth zone (ex-housing com houses i might add) which is the highest rental in each of the suburbs i am in. ppl ask me how - i say think outside of the square.

 

Definitely need to look outside the square for cash flow.

It could be a simple buy and build at rear of the property sell front and keep rear, dependent on the numbers.

Put together a DA, very simple, employ a good town planner for this one. However timing is critical and the numbers need to stack up. Can be very low risk if you get this right.

Granny flat at rear? Not my favourite strategy unless the structure is already in place, but this has worked for some investors. Down side is lending aspect LVR and the fact they wont be on separate title.

Buying in cheaper/regional areas for cash flow. Not a fan $2000 pa cash flow could easily go from green to red, due to maintenance age of the property. Growth debatable??

Buying OTP product/units, this can work but you need to focus on product, smaller block, middle ring, close to infrastructure/transport. Depreciation and buying during the build process to reduce stamp duty and developer discount.

Buy higher yielding shares (I know nothing about this, but seems this is what some investors are doing). They are using equity for this and holding for the long term. I guess volatility in the markets could be an issue??

I am a fan of chasing rising markets buying up and then selling down to reduce debt, increase cash flow. Holding stock is not good if you are paying debt and the markets shift from growth to correction.

I am a fan of USA property for cash flow, but I can am also playing in markets that are rising, so I achieve both. (This requires boots on the ground). Not for everyone.

 

@James Baker

maybe something to think if you are looking at 750meters distance close to the station wouldn't want to be close to the sky rail


Category: | Herald Sun

 

Well the conparison i made was from westfootscray to sunshine to OPs Reseviour, Thomastown Lalor. So a better comparison is WF to Res, Maidstone/Braybrook to ThomasT, Sunshine to Lalor.... comparing sunshine to Res wasnt what i was meaning.

Yea i watched thr Sunshine show, i dont think the afican kid rapes the girl so its not too bad.

 

yes but how much is Maidstone ? how much is Thomastown, how much is Sunshine and how much is Lalor?

No doubt Maidstone is good I like the area - but it's quite pricey. If anything St Albans would be better.

 

Is St. Albans not a high crime area ?

Would you recommend investment in that area for a newbie ?

Any good pocket within the suburb?

Cheers

 

i think best advice if you want to do this yourself is to have some on the ground research

 

Very true

But my main problem is time management
I have recently shifted to Melbourne, so the work load is extremely high and i have to stay late in office

Thursdays i take half day off and see some of the properties which are coming on auction coming Saturday

Saturdays is spent only in attending auctions

Sundays i have to do my weekly shopping and other household chores

Cheers

 

Looks like you should get a BA then or someone who knows areas in your budget.

 

I am hoping that the good members of the forum will help me out in the areas I am interested with their knowledge

Reservoir
Thomastown
Lalor
Bayswater
Heathmont
Sunbury
Heidelberg West

Cheers

 

it depends on individual circumstances your strategy, timeframe etc - some guys who never ventured west or north would prefer Heathmont while those semi or pro focus dev ppl would go Thomastown or reza or H.west. it really depends. there is no one right answer for everything.

 

the days of being able to buy just anything and making double-digit returns are fast fading.

Based on the CoreLogic index, Melbourne growth YTD is 8.5%, Sydney 4.7% and falling. The reality of poor yields is going to become very apparent, so if you buy a property without a very clear picture of how it will be growing or how you will consciously add value, then there is every chance you may make a bad investment. Others cant really help you there, you need to know what special sauce you are bringing to the table.