same suburb, house vs townhouse

Discussion in 'What to buy' started by lettert, 30th Dec, 2019.

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  1. lettert

    lettert Well-Known Member

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    This is the question I've been pondering: same suburb, similar budget for IP - should I buy a worse-located house or better-located townhouse? Which is more likely to have better capital growth? (my goal is cg)

    As an example, I'll use the Mount/Glen Waverly area. I know technically it's not the same suburb, but I think the area has a similar profile.
    I'm looking at sub-1.2mn houses, 1mn would be good but not essential.

    I can get some decently-located detached townhouses (near trains etc):
    https://www.realestate.com.au/sold/property-house-vic-glen+waverley-118647367
    880k - close to trains - very little land
    https://www.realestate.com.au/sold/property-townhouse-vic-mount+waverley-130648334
    1.111 - close to trains, very little land
    https://www.realestate.com.au/sold/property-townhouse-vic-mount+waverley-130213778
    1.1 - close to trains, very little land
    [basically, all these options are good for commuters, but does that even matter?]

    Or...
    https://www.realestate.com.au/sold/property-house-vic-mount+waverley-130245342
    1.155 - 730sqm, backs onto reserve (potential negative?), not that walkable
    https://www.realestate.com.au/sold/property-house-vic-mount+waverley-131058178
    890k (seems a comparative bargain) - slightly close to freeway (but from maps looks like not close enough to be affected by noise/pollution), can't walk to trains
    https://www.realestate.com.au/sold/property-house-vic-glen+waverley-131833598
    1.02 - backs onto reserve, 720sqm

    I'm thinking that given how much more land the houses have, they might be better bargains despite being further away from trains and shops... These are just random samples, there are maybe better bargains out there.

    But how much does location matter? There are very few walk-to-train townhouses , so there seems maybe a slightly higher scarcity factor there?
    I think, if it were a different suburb with a lower price point (eg Croydon) I'd prefer a townhouse (even a duplex with a shared wall), that's more of a young family/FHB suburb where they prefer smaller house and better location?

    vs Mount and Glen Waverly where perhaps people with high-school aged kids would prefer a bigger house? I'm aware of the foreign buyer component in the Waverly market, but not sure how that affects the house/townhouse preference
     
  2. The Y-man

    The Y-man Moderator Staff Member

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    Would not touch 42 Sandgate as an IP - insanity.
    HV powerline running through back yard.

    Same goes for 43 Talbot

    The Y-man
     
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  3. The Y-man

    The Y-man Moderator Staff Member

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    Ok - tough call between 64 Bruce and 1/14 Shirley.
    Both have potential to value add to the building.

    You would go Bruce for the sheer land component equivalent to $1575 per sqm.
    and 15 min walk to station (totally doable)
    Crap Feng Shui but....

    Compared to that 1/14 Shirley - at 373 sqm, is $2359 per sqm.
    HOWEVER for me, what makes it an interesting proposition is:
    2 min walk to station
    smaller initial outlay
    probably a better yield
    In the GWSC Zone (this is a biggie!!)
    Ironically the only major downside here is the proximity to the train! The line is only 4 houses away AND raised

    The Y-man
     
  4. lettert

    lettert Well-Known Member

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    wow, missed those power lines completely! These are just sample sold properties which I haven't seen in person - how could you tell? 42 sandgate looking again, I believe you can actually see from the first photo

    For 64 Bruce I was concerned about backing onto the reserve, I now notice it's also backing onto something called "Mount Waverly Drain" which doesn't sound pleasant to live near

    I'm guessing I should shift my sights to a different suburb.
    (which brings up a whole different can of worms, eg "townhouse in Mt Waverly vs house in Ringwood"...)

    End of day (when comparing in the same suburb) I suppose I should spend a bit more and get land further away from train/shops?

    I find the house vs townhouse cg a bit hard to determine, especially when they aren't apples to apples in terms of location. I've been watching townhouses in Bentleigh (south of Centre Road) and most seem to have appreciated from 650/700ish to 1.2ish, depending on location (ie near the Centre Road shops/train have done well). vs houses a bit further out seem to have performed better...
    Again, I know it'll vary based on suburb, and I only have this one past observation to depend on.
     
  5. lettert

    lettert Well-Known Member

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    thank you for your detailed analysis on 1/14 vs 64 Bruce! Interestingly I think 1/14 was the only GWSC zone place I saw... I'd love to have an IP in that zone and the lower entry point does make it attractive... :/
     
  6. The Y-man

    The Y-man Moderator Staff Member

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    There are 3 sites I use (in order - which I did here):

    1. Australia Map - Melway, Sydway, Brisway, Ausway, Street Smart - this shows you power lines
    2. Google Maps - to get walking distance to stations etc. However in the case of shirley st, it does not give the correct figure (7 min) - the streetview shows (hard to see from aerial shot too) there is a path going from the end of tht estreet to the station
    3. MapShareVic - to get land area (street-directory usually shows the block size, so often does not work for units) and zoning/overlays

    The Y-man
     
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  7. The Y-man

    The Y-man Moderator Staff Member

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    Don't worry about the "drain" :) - it's not a sewer or anything (actually a water way that drains into scotchman's creek).
    No flood overlays, but Bruce st is under a bushfire overlay

    The Y-man
     
  8. lettert

    lettert Well-Known Member

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    Ah, lovely, a drain that's not a drain! Good news for once :)

    So if you were to pick between the two, which would you pick? I know it's all hypothetical, but still...
    You seem to know the area very well! I'm still undecided about the IP location but am leaning towards somewhere preferred by Asian buyers, a good high school zone seems a good bet (hence mt/glen waverly, followed by Ringwood/Ringwood East)

    The Bruce St info is helpful, makes me think that a sub-1.2mn house in Mt/Glen Waverly is still possible, though the market may have moved by the time I'm all set to buy.
     
  9. The Y-man

    The Y-man Moderator Staff Member

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    I'd have to sit outside Shirley st and see how noisy the trains were.... but I'd probably go for that. I love everything about Bruce st except that slope!

    The Y-man
     
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  10. craigc

    craigc Well-Known Member

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    You can still get original houses in GW at 1.2 but less likely in GWSC zone. Brentwood yes (see recent sales around Watson’s Rd) and if outside both of these school zones maybe even a little cheaper.
    School zoning is big in GW.
    Good luck!
     
  11. datto

    datto Well-Known Member

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    I've tried that before. The cops don't buy it.

    But, erh, in my mind, in general, the benefits of a house always outweigh those of a townhouse in the same suburb.
     

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