Reservoir (Vic) - Missed the boat?

Just been doing some research/homework. Was initially looking at warehouses around Vic but they seemed to have gone bonkers like any habitable piece of land in Vic and stumbled upon Reservoir. I don't usually follow the real estate market all that much (have 1 ip in Chadstone) but I was sort of surprised there are still some houses still selling in the 600s-700s. I had a mate who dumped $710K for a place in Clayton in 2013 and I thought he was crazy!...it's probably worth over $1mil now, but it still astonishes me - Clayton??!?!?

Could anyone shed some light onto Reservoir? I'm looking at $650k-$750k for a 3-4 bedder BV to rent out at about $400ish. It is known as a high crime area and is next to Heidelberg West which is probably one of the last bastions of the dangerous suburbs waiting to be gentrified. The public transportation (rail), closeness to the CBD - about 12-14kms and decent sized blocks (about 600m2+) seems really attractive and at that rate. I

The going rate seems to be about $1,000 per square metre these days for Reservoir? I need to either look North or West if I am to buy another ip...or shall I wait...hmmm...

Thanks.

 

Clayton has been selling for above the million mark for more than 1-2 years now. Monash Univeristy which has universities in Asia, twining programs with multiple overseas learning institutions is a big selling point. they have among the highest overseas students in austalia. Have you been off clayton rd near the station (it's like a mini Chinatown now), In Melbourne, univerisities, high schools etc.are a big selling point. 2 friends bought in clayton in 2013 as well 700Kish and sold 1.2 and 1.3 million

Heidelberg West if not mistaken had among the highest growth (20%+) over the year just ask @Perthguy . I saw land selling in auction withing 800-900K in that area.

Reservoir is Big - which areas are you talking about?. The oakhill estate will be in the millions, off gilbert rd - as well. there is a lot of rejuvenation of the suburb happening, With a new train station, the preston market is also redeveloped. Summerhill hotel getting rebuild with new building etc. You only need to go to high st preston (another mini Chinatown) Cons are it has a lot of burglaries than the neighbouring suburbs. it could be similar to clayton with Latrobe nearby.

I will throw you this tip (since I am not buying - for that range 650-750Kish) buy on albert st, preston to reservoir.

 

Hi,

I was looking for something near Ruthven Station something like this:

23 Tovey Street Reservoir Vic 3073 - House for Sale #124129174 - realestate.com.au

It seems Reservoir central has also taken off?

 

Reservoir is large suburb and has a few pitfalls which makes doing some due diligence on the ground worth while.

If aren't familiar with the area my advice would be to drive over, park your car out the front of this a joint, hop out and take a moment to admire mans ability to generate electricity and then walk the ~20 mins to Ruthven station to check out the vibe of the area.

I am tempted to make a joke about your car not being there when you return from your 40 minute stroll but that would be just a tad over the top.

Alternatively you Could just look on google maps streetview at the neighbouring houses ( number 19 and 21).

Sattelite view will also show the immediate back neighbour is a mysterious complex. This is "reservoir lodge" a privately run facility with "49 rooms for residents that are unfortunate , vulnerable disadvantage...also cater[ing] for younger adults with mental health issues"
Dependable Care

So, I guess what I'm trying to say is that if place like that is listed for $725k then it seeems to me the boat has well and truly sailed.

Reservoir has absolutely surged in the last 12 months. Eg compare the above property with this comparable property on 810sq which sold for $505k six months ago after sitting on the market for months.

14 Tracey Street, Reservoir, Vic 3073 - Property Details

There are better areas of reservoir that this where the growth has started to falter due to the beginnings of a glut in dev blocks (with permits) and end values on the projects are getting a little shaky.

So imho an area to keep an eye on but I one I would be very cautious about.

 

those at oakhill estate has always been very expensive and same as gilbert rd, regent street side.

The key is to find the ones that have been rezoned (but no one bothered to find out), near parks, towards the university and nearby large scale developments in reservoir

some of these sites are less than 700sqm than the one you have listed and yet the prices are over a mil over the last 2 months.

149 Broadway, Reservoir, Vic 3073 - Property Details - 1.1m
221 Broadway , Reservoir, VIC 3073 - 1.34m
86 Summerhill Road, Reservoir, Vic 3073 - Property Details - 1.6m

I regularly attend auctions in reservoir, preston, kingsbury, heidelberg heights, west, bundoora over the last year though i don't particularly go to the ruthhaven side. There are pretty hot auctions and prices do not seem like they are going down like in winter crescent etc. There are some parts to not venture into (there is a massive housing commission site like in a rectangular side position intersecting starthermon and boldrewood it ranges like 12,000 sqm).

If i were you i would be looking to blocks that have potential to be rezoned or aleady rezoned (and the agent does not realize it). There is a super lot of major infrastructure happening. A lot of Asian buyers buying up commercial sites around the area and also blocks. This reminds me a lot like chadstone and ashwood in the day.

 

I wonder about the impact of the north east link announcment and if it would make any difference to the areas and surrounding. I guess it depends where they connect it to on the eastern.

 

My two cents
Buy in the areas of Preston that are yucky fur to demographic and not things like train station or things that can't change unless you get lucky

And. Make sure you pay less for this negative

Eventually this area will clean up and be similar to the better areas

Which means higher percentage capital growth