VIC Should I buy my first property in Williams Landing?

Discussion in 'Where to Buy' started by Browneyed, 23rd Jan, 2020.

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  1. Browneyed

    Browneyed Active Member

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    Hey all,

    I'm planning to purchase an off the plan property in WL Victoria. I'm a first home buyer.

    It is a townhome (3 – 3 – 1) on a block of 180sq.m. It's costing me $575k turnkey. 10 min walk from train station. Parkland facing own private street with 6 other townhomes.

    I'm going to sign a contract on the land on the 1st of Feb (building contract to follow next). I have 9 days to think.

    I think I'm a bit nervous this being my first property. I have always rented in South East side of the city for last few years but it is time to wear the grown up pants and purchase. I'm thinking of WL because of bigger space and I believe more capital gains than say, a new apartment in Hawthorn (correct me if I'm wrong).

    I'm just looking for some guidance and your personal experience on what you think of life in WL in terms of safety, lifestyle and CG.

    Is it safe to live in a townhome there?

    Are the trains to and fro the CBD crowded in morning and evening times?

    Do you find parking in the morning outside the station or is it a struggle?

    Lastly, do you think it's a good deal to buy in that suburb based on capital gain?

    Another option is buying an apartment in Hawthorn East in that range. Would you say that has better prospects? I'm getting a new one about 70sq.m in total inc balcony, 1 bedroom + 1 flexi room, 2 bathroom, 1 car space.

    I'm very new to all this and don't want to get this wrong. :(

    Really appreciate your help!

    TIA!

    B.
     
  2. Westie

    Westie Well-Known Member

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    Welcome to the forum!

    I've lived in the area since 2008, back then it was mostly paddock so you can say I know it like the back of me hand.

    I assume this is to live in? If so, I'd buy an established house with a much bigger land component than just 180sqm. Remember, buildings depreciate, land appreciates.

    Dunno what your budget is but for about $630k or so you could buy a 3x2x2 with about 450sqm land. That's MUCH better than a 3x1x1 on a measly 180sqm block. The former will be an older house for sure with probably not much depreciation left to claim back. The latter will obviously have decent depreciation but that shouldn't be your primary driver anyway.

    Like most other areas in Melbourne, the area took off in value from say about 2013 to 2017, prices effectively doubled. I personally think there will be some more CG to happen given there's a big town center in the works, roads surrounding it are being dual laned in both directions, Target Australia has its HQ in the suburb which apparently is a decent employment hub. The suburb lacks a school which IMO is what's held its value from exploding. If schools are important to you or could be important in the future, there are no good schools other than Westbourne Grammar.

    I think it's a safe area to be in, sure there've been those break-ins that happen in any suburb especially in the areas still being built up (especially in the new devs like the one you're thinking of signing up for). The trains are crowded AF, just as you'd expect from a high growth area. Before they double-laned Palmers Road, the area was an absolute nightmare for traffic during peak hours. Now the nightmare has been shifted to the Forsyth Rd/Boardwalk Blvd area, there are delays stretching for an easy 1-1.5km in peak hours. When they've finished double-laning this area, I reckon traffic will definitely ease up for some years to come.

    A number of cafes and restaurants have opened up in the current town center, they appear busy. The Jolly Miller cafe does decent coffee. There are a number of medical centers in the area to cover your needs. The train station car park is absolutely full by 6.45 or so. However, there's paid $3/day parking around it.

    Lemme know if you any more questions, you can PM me too.
     
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  3. croseks

    croseks Well-Known Member

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    Westie pretty much summed it up nicely. ^^

    If this will be your property to live in then new is not a problem, however if this is based purely as an investment choice then I think you should consider that buying anything new or off the plan already has growth priced in.

    What I mean by that is, the real estate agent has to get a cut, the developer has to pay his bills and still make a profit and that is essentially what you are paying. The newer properties therefore tend to have no capital growth in the short term (1-10 years). Over the longer term 10+ years however the price will definitely grow.
     
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  4. Browneyed

    Browneyed Active Member

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    Thank you so much for responding. I appreciate it.

    I'm planning to live in at least for a year, but may extend it depending on how I like it there. I was just concerned about safety. But you have addressed that.

    If I live in for 12 months, and move out to rent the property, would that be a good decision? This is not purely from an investment perspective - I suppose I am looking for an in-between, a best of both worlds I can get in that budget.

    Would you say if I sell after, say 2 years, I would at least breakeven?

    B
     
  5. Browneyed

    Browneyed Active Member

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    Thank you so much! Really appreciate you taking time out.

    As in my earlier reply, I am looking for a nice in-between that gets me FHOG. I can live in a bigger space new home. Little bit of a struggle travel-wise to the city.

    My budget is $575K tops :( I'm doubtful I'll get a bigger land block in that amount. Also, I won't get $10K grant with a property older than 5 years. And won't move in into an older home, rather stay here. Just highlighting some points.

    I suppose, for me the comparison is between quality of life + CG. Hawthorn East has great lifestyle, but a new apartment, can it get good CG?

    Williams Landing - I will get a bigger space to live in, but will I get any good returns from it being a small size block?

    So many questions... :(

    B.
     
  6. croseks

    croseks Well-Known Member

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    If you are looking to sell within the first 5 years, you will probably lose money. Sorry to be so blunt, just trying to let you know.

    The reason being, buying costs you have stamp duty, mortgage costs, conveyancer costs etc... So if you buy for say $575k, the actual cost will be around $600k minus your first home owners grant.

    Then when you want to sell, you have selling costs such as agent fees, capital gains tax (only if used as a investment property, there is exceptions) etc... so you can see very quickly that by buying and selling in a short term timeframe it will be very difficult to even break even, especially with a brand new townhouse/off the plan.

    I would only be looking to buy if you want to hold the property for at least 10 years, otherwise I would keep on renting and saving until you find the property that you can hold long term.
    Thats just me though haha :)
     
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  7. Browneyed

    Browneyed Active Member

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    All g - please don't apologise!

    Good advice. So I need to make my call based on 10-year mark.

    Just to add, I'm not paying any stamp duty because I am a First Home Buyer.
    I have engaged a Conveyancer at $1000.
    Mortgage costs etc - I believe all this will be about $2k tops.

    B.
     
  8. The Y-man

    The Y-man Moderator Staff Member

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    What's Laverton like these days? Looks like houses on 600sqm for $570k?
    20 Kaye Crescent, Laverton, Vic 3028

    I assume the train would be even worse by there.... but still....

    The Y-man
     
  9. Browneyed

    Browneyed Active Member

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    Not sure about Laverton, I've only been looking at WL at the moment.

    B.
     
  10. Westie

    Westie Well-Known Member

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    I wouldn't want to live in Laverton, personally, though I rented there from 2006-2008 or so. It was a dump back then, IMO. Getting a bit better with gentrification and removal of the level crossing (which was a terrible nightmare, it used to take 20-25 mins to get to the damn freeway and I was only like 1.5kms to the on-ramp). It's still not the greatest to live in, some interesting characters loiter around the station and Foodworks area after dusk. A lot of development has happened which sure has spruced up parts of the suburb, other than that there isn't much going for it. However, the area on the other side of the freeway, Altona Meadows is better. Similar/slightly higher prices for better properties.

    There's NO chance of a seat by the time the train's at Laverton. Half the world gets on/off the trains at Williams Landing. I've lived around a fair few Melbourne suburbs and I kid you not, I haven't seen more people at any other station (maybe Tarneit comes close).
     
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  11. Wendy Chamberlain

    Wendy Chamberlain Well-Known Member

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    Firstly, well done on taking your first step towards owning a home.

    If you have always lived on the South East side and are throwing Hawthorn East into the mix, I'd be wary of totally moving your entire life over to the West of Melbourne unless you've lived there before or have friends/family who do. Particularly to buy, as if you end up not liking it, you've made a huge commitment.

    I would try before you buy. Either rent there for a while, or even do some Airbnb stays in the area to make sure you love the suburb, the vibe, ensure the transport options work for you, etc. Driving around the suburb is a start, but immerse yourself for a while to feel how it ticks. Every suburb is different and the south/east versus the west particularly so.

    I would suggest this for any suburb you're not familiar with, not just Willaims Landing.

    Then take the plunge and buy there if that feels like a good fit for you.
     
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  12. Browneyed

    Browneyed Active Member

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    Thank you Wendy :)

    It is a weird surreal feeling.

    I agree with your advice, and have been in the area several times. In that, I can imagine myself living there.

    I could start renting however will need to make a decision soon as the contract signing day is coming up, whether or not to secure the property. Given the current market there, I also don't think I should wait for too long as the prices are creeping up.

    B.
     
  13. VICPER

    VICPER Well-Known Member

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    I believe this 3187 Abbotswick Circuit, Williams Landing, Vic 3027

    I would follow Westie's advice and get a house. However, I noticed that you don't have many options in that price range. Your research continues.....
     
  14. Browneyed

    Browneyed Active Member

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    I know :/

    That one in the link is gone btw, I don't know why they still list it on the website.

    B.
     
  15. Michelle Evans

    Michelle Evans Well-Known Member

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    Just to add some extra info for your thought process, there’s an over supply of rentals in the area. Point Cook (just the other side of the freeway) had 395 vacant rentals last week. Add Williams Landing, Hoppers and Truganina- so much for quality tenants to choose from.

    4 bedrooms walking distance to the train station are leasing for $420pw (some higher of course) but even so, having something smaller / single car garage, rental yield will be low.

    I’d be checking with an accountant / financial advisor to see if it would help you to rent out negatively geared (assuming you’re having a mortgage). If you can’t hold it for 5 years + then don’t do it.

    If you want something that will grow, and you need a train line- look at Cobblebank (East Melton) and spend $450k on a nice house.

    Good luck!