Seeking IP advise from all you property guru's

Hi All,

Long time reader first time poster! Have thoroughly gained so much insight to property investment and now here seeking advise / suggestions from all you property guru’s on my specific case today; would appreciate all advise.

My property goal is hold 3 IP’s for long term (7-10years) for good CG and currently own 1 IP in Dromana and plan to build next IP- H&L in Officer (Arcadia Estate) suburb.

I wish to seek your honest feedback,

1) What’s your opinion on IP’s that are over 50+km’s from the CBD? Should i keep the above IP’s or should i reassess and sell these IP’s and reinvest in suburbs closer to city, .i.e Werribee, Melton etc for long term capital gain? Which areas would you think will help achieve greater long term CG.

2) With east werribee on the horizon, would Werribee be better investment than Dromana or Officer?

My budget for next IP is around $500k. What suburbs would you recommend if not Dromana and officer please.

In spite of months and months of of research I have ended up making many mistakes along my small property journey, I am hoping some of you could guide me for the better. I love reading most of your posts and appreciate your vast knowledge that you all share selflessly.

If you could please take sometime out to answer my queries, i would be very thankful to you. Many thanks.

 

1. Depends on what CBD you are considering.

 

I would start by suggesting that 7-10 years in the property game isn't long term. It's not even one cycle. If timed wrong its possible to not see any growth or very little growth in that time. I would say you would need more than that to call it long term.

Buying an IP based on the distance to the CBD does form part of a strategy. Depending on your strategy, this could work for CG. Moving closer to the CBD will likely cost you more. If you have 2 properties you might need to sell them both to buy one closer to CBD certeris paribus. This would be considered a type of concentration risk. If your strategy allows for this then it's plausible.

In regards to 'which suburb should I invest in', this does not have a simple answer. Once again depends on what your objectives are, budget, strategy & ability. I suggest you use the search function on this website to do some research about suburbs in Melbourne which could have CG potential going forward in the shorter to medium term. There has been a lot of talk about Melbourne on this site for a few years. Finally, be aware of where Melbourne is on the property clock. This may help you decide if and when it's a good 'time' to invest now.

 

Hi,
I believe your purchases are good and you must have seen the result in last two years time. Please note that Dromana (I had to search on map ) will continue to give you growth in coming year or two. Because of ripple moving outwards. This is a belief and market may or may not behave in intended way.
I am not sure when did you buy land in officer. But if it was around 2015/16, even that would have given you good growth. if not, you need to save on build to save further.

I also believe that Melbourne is peeking and the way it has grown in past 2-3 years, you should wait before buying another. I still see some areas worth considering and a lot of land sales in good areas. However, buying in areas that have already grown does not make sense now and because you already have 2 in outskirts, buying more will expose you to more risk.

Regards
Ashish

 

Brisbane 10-14km mark. Free standing home with add value potential. That's my pick.

 

Lets at least learn the difference between advise and advice

 

Thanks Terry, Sorry I was referring to Melbourne CBD and its periphery.

 

Thank you so much York, noted! my long term may inadvertently end up being 15-20years or so, however just referred to 7-10years just incase my situation changes in between. Thanks for the rest of the information, will research and consider accordingly. Thanks again!

 

Thanks a ton Ashish! Your message was a feel good factor to my pessimism. Both properties were bought in 2016. Whilst on an absolute basis both properties have seen reasonable growth; I was primarily curious on a comparative basis with closer suburbs– i.e. will it make better sense to buy in Werribee instead (in lieu of East werribee precinct) and/or buy closer within 30km to melb CBD or maintain the current one’s inspite of the long distance from CBD for the following reasons:
- Officer has many things going for it and with land being in Arcadia estate is prime spot for future growth planned there -my property is right in the middle of existing train station (that’s is being upgraded) and two schools
- Dromana whilst being on the outskirts it is close to beach and will that in itself drive its CG offsetting the distance to cbd etc…Arghh, confusion galore!

Anyway, thanks again for your time and input. Appreciate highlighting the Melbourne peak aspect…! Will keep that in mind.

 

Thanks Leo. Any particular suburbs you’d recommend?

 

Thanks, working on it now! Although in the process I did learn the difference between "Lets” and "Let’s". Aside the pedantry I’d welcome your thoughts on the focal queries I’ve raised though. Thanks.