VIC Rockbank

HI All,

Any thoughts, how good it is to buy a IP there. heard Rockbank already has a station, and the station will be electrified to metro soon. will it be a good option to invest in there (in accolade estate ) ?

 

The question I have for you is why do YOU want to invest in Rockbank specifically?

 

I am planning to invest in there. I had a look all around werribee, thornhill park, melton ....I felt this is the only place, where there is existing railway station. all the other estates, have their estimation for atleast 10 years after. Rockbank looked promising, as it has everything (Railway station, immediate free way access, proposed shopping centre in next 5 years , Bacchus marsh school in woodlea ) ...

 

Clearance rate is sitting at 50%, which is well down on Melbourne average, 91 days on the market is average sale time, barely any online search interest, 24% of the suburb is on the market atm.

Yields are high at 5.35%, but so are the vacancy rates. High percentage of renters at 23%.

You may be able to get a bargain, but I wouldn't be looking at too much CG over the next few years.

Whatever you look at should be cashflow positive in Rockbank.

 

Have you been to rockbank? Not much there at the moment..
If you were a renter why would you rent at rockbank when you can rent where there are more facilities, ie at caroline springs or Melton. Renting is different to building an OO home..
I dont think the train will be electrified until after the tunnel project is done, so 5 years away at best, maybe more..
I think some people on the forum have done alright out of there though...

 

It sounds okay to me for a long term hold if you can buy in cheaper than everywhere else. I have no idea what the pricing is like there though. Who would have ever expected Melton and Werribee to take off like they have the past 18 months.

 

Um, Melton South has a train station and unlike Rockbank all the amenities are close by (schools, shops, restaurants, sporting facilities etc).

 

Agreed to all the posts above. Yes it MAY be an 'ok' investment long term (and we're talking 10 years here), however it wont exactly take off for a very long time until areas like Melton and/or Caroline springs become unaffordable.

Youll also need to calculate the holding costs of this property you intend to buy if youre happy to hold onto this for 10+ years. Maybe then, you may see it might not be the best of investments. Perhaps you could invest that same amount of money or a little bit more in a different area and get greater capital growth in half the time.

Just remember the simple rule, supply VS demand and put yourself in the shoes of a possible tenant. The question you can then ask yourself is, "Would I (as a possible tenant) want to move to Rockbank now or in 5 years when there are areas closer to the city with better ammenties for the same amount if not a smidge more?"

Personally, I would not invest in Rockbank. If I were to invest within that region, then I would invest that same money into Melton.

 

It's too late to invest in Woodlea/Bridgefield in my opinion now. You make money via H&L/new estates if you get in early. Woodlea are into Stage 37 with titles towards the end of 2019. Blocks are at crazy prices. A good mate of mine bought a 600+sqm block of land early last year for $245k. That same block would now be about $450-470k. See where I'm coming from now? Even if you got a smaller block say a 350sqm one, the block would be at about $320k or thereabouts. Build on top for about $250k or a little lower perhaps. Stamps and all would take you to $600k or thereabouts? How much do you think it would rent for? $400/week? Then you've gotta have a property manager, this and that insurance and so on.. How do the numbers look like now? Can you hold on to this property for 10 years like the above posters have indicated?

 

same what @Westie says, also you might look at stage 1 in monument in plumpton
Monument Plumpton

 

The prices you quote for this estate are off the mark. We purchased a 900sqm block and paid 525k (roughly $600 per sqm). Most other estates are heading towards 1k per sqm
We bought here because it is the only estate in the west that has large blocks, a established train station and natural water features. It will become very desirable with families who want bigger land when everything else is 300-400 (or smaller!)
If you compare to the other immediate estates woodlea has freeway access. Mt Atkinson will be good with a large hill and also divided residential and industrial (small factories) area. But 100 blocks sold out in 9 seconds!
Driving through Deanside, which will have new estates, its very flat with no body of water.
It's worth noting the future outer metropolitan ring rd which will connect geelong freeway with Craigieburn area.

 

Strange why would u buy at 900sqm block in Home and land estate which has a single covenant unless u gonna build a mansion. Larger plots are only useful if they can be subdivided

 

As a investment, sure.
But when you have a vegetable patch, 2 dogs, 6 chickens, a boat, 3 motorbikes and two cars it's much better having triple garage and 900 square meters over our current 600 haha
The entire street of about 15 lots has large blocks and is opposite wetlands. In 10 years it will be the street with nice houses on big blocks amongst 400 or smaller square meter blocks. Lots at this size will come on the market rarely, while small lots will be dime a dozen.

 

Its a good resale point too. We bought in an estate that was the only one in our sth eastern suburb with blocks ranging 700-1200m Its now the "prestigious" estate due to the large houses and large lots with nice gardens etc. Its mostly owner occ, not full of rentals. Blocks in here were about 30k more than the estates with the 450-550m2 blocks when we bought 8 years ago, but now everything in here is selling for 200-450k more than houses in the other estates with the smaller blocks

 

good for gains when you resell. sets you apart from the other estates, and the purchasers are likely owner occs buying with their hearts

 

True as a PPOR - but even to sell it for a high price, though there is a lot of land around rockbank and the median is too high to purchase in for the suburb. wetlands plenty of that too around pt cook.

if someone wanted more land they could go to park orchards

 

In "My 4 Year Old Property Investor" Cam Maclelland poses that prices for houses in new estates only go up when the last blocks have been sold. That could be a long time in Rockbank? Maybe better to go for somewhere that is a bit more established where there aren't many places left?

 

I'll be watching out for crocs in rockbank

Melbourne woman keeps five pet crocodiles | Daily Mail Online

 

Station is getting rebuilt now & is expected to finish by end of this year which is good news along with the ballarat line... bacchus marsh grammar is opening in woodlea in the next few months... but i'm not sure if the proposed shopping centre will be done in the next 5 years.. I hv invested in a land in Bridgefield estate of rockbank, fingers crossed!

 

Hi @Wormy, is your land in woodlea or which estate is it?