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Stuck....where to start for Melbourne IP????

Discussion in 'Where to Buy' started by Peta Notari, 6th May, 2016.

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  1. Peta Notari

    Peta Notari Well-Known Member

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    Hi All,

    I am hoping you can help me.

    I have just started looking for our next IP in Melbourne area and I have no idea where to start. I am interstate and do not know the area at all.

    We are looking for a 4-2-2- (at least) on a minimum 450msq block (the bigger the better) with a youngish house (well under 10 yo) close to amentites and public transport. Chasing CG. Not too far from Melb CBD.

    Have about $500k to spend but due to the lower yields down there, we would be about $200-$300 negative per week if we bought a property in that price point....so we are looking for $300-$450k range roughly. I understand that its most likely going to be negative but that is a bit too much one way for my liking.

    What do you think about the following suburbs (many I have just plucked off a map)....?
    • Footscray
    • St Kilda
    • Brighton
    • Sunshine
    • Atlona
    • Heidelberg
    • Camberwell
    • Coolaroo
    • Camberfield
    • Epping
    • Tullamarine
    • Greenvale
    • Meadow heights
    • Werribee
    • Deer Park
    • Wyndham Vale
    Any help from the wise out there would be very very much appreciated.

    Thanks in advance :)
     
  2. larrylarry

    larrylarry Well-Known Member

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    You should really fly over and drive around. I'm going over again next week.
     
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  3. Otie

    Otie Well-Known Member

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    Footscray- over budget
    St kilda- over budget
    Brighton- over budget
    Sunshine- can do
    Altona- not sure but maybe Altona meadows
    Heidleberg- over budget
    Camberwell- over budget
    Coolaroo- within budget (but not sure if it's well located to the things you have outlined?)
    Campbellfield- within budget
    Epping- within budget, new land estates there too
    Tullamarine- within budget
    Greenvale/ lots of land around
    Meadow Heights within budget
    Wyndham vale/Werribee within budget, new homes
    Deer park- under budget, no zone 1 train

    Hope that helps a bit
     
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  4. Peta Notari

    Peta Notari Well-Known Member

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    thanks for your reply. I do plan to do that but I need an idea of locations for that purpose too...

    That is helpful. Thank you. I had an agent tell me the other day that Deer Park was waking up and that all the surrounding suburbs were done with their cycles (I get he was pushing his own agenda with a property for sale in Deer Park), but would you agree with that at all?

    Any other suggestions for suburbs based on our criteria again.....that list was just a stab in the dark!
     
  5. Otie

    Otie Well-Known Member

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    I too initially was looking at Deer Park, however there were a few reasons that ended up changing my mind, i can't remember what they were but I think it is too close to new land releases where buyers can go a bit further out and get a big new house for the same money. Also it seems the growth in deer park has been quite poor historically.
     
  6. Coota9

    Coota9 Well-Known Member Premium Member

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    @Peta Notari

    This would be a good placed to start.

    Melbourne Investment Property Market Data
     
  7. albanga

    albanga Well-Known Member

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    I grew up in Melbourne West and must say I struggle to find a single positive with Deer Park.

    For your money I would be looking North West for a splitter block in Broadmeadows/Jacana. Have very solid fundamentals with a poor reputation. Reputation can and does change, solid fundamentals such as distance to the CBD and infrastructure including train lines and freeway access doesn't (well some can be rarely in established areas).
     
  8. melbournian

    melbournian Well-Known Member

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    glenroy (next to strathmore and essendon well sort of - which are higher end suburbs)
    fawkner (close to coburg and brunswick - also higher end suburbs)

    in melbourne, lower end suburbs surrounded or next to expensive priced suburbs will normally take in the rises. Take blackburn, ringwood etc. (following on from box hill, doncaster) and i've been following the heidelberg heights and west areas and they have risen too as they're surrounded by million dollar suburbs. No reason, glenroy and fawkner will rise even further. i saw a corner block in these suburbs so might go down to have look today.

    Maybe go in with a higher deposit, since rents are not that high around there otherwise you might have to go further out from melbourne.
     
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  9. albanga

    albanga Well-Known Member

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    Glenroy is a prime example of my statement above regarding reputation. I actually am unsure when that transition even happened, it was almost a blink of an eye because believe me 5 years ago when you mentioned Glenroy it wasn't to discuss its healthy property market and future prospects!

    I am probably heavily biased because my PPOR is in Niddrie but I do believe Melbournes north west is the most under valued real estate in Melbourne at the moment.

    Look up all the key barometers for property growth and it has them all for nearly half the price of the similar distance to the East.
     
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  10. MTR

    MTR Well-Known Member Premium Member

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    Spot on, I purchased and sold many properties in Broadmeadows all development sites, these areas are on the nose with locals, but they made me money. In particular the development sites, I love these.

    I also purchased a maisonette in Broady and got plans and permits for 8 unit site and on sold after 12 months one of my best flips with over 40% profit.
    Just shows don't ignore these areas, they can turn out to be gems

    MTR:)
     
    Last edited: 7th May, 2016
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  11. Otie

    Otie Well-Known Member

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    Is there still $ to be made in Broadmeadows short term dev/flip? old 3 bed houses start at about 370k on 600m blocks.
    Did you buy a few years ago cheap before prices hit current prices @MTR? Townhouses are only seeming to bring approx 270k for 2 beds
     
  12. Otie

    Otie Well-Known Member

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    Is there a "nice" or good part of Jacana at all? I am semi keen on Jacana
     
  13. Barny

    Barny Well-Known Member

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    Mate I'm also biased as I have a couple in these areas and always felt you get heaps better value in the west. But property prices have always been almost twice the price in the east compared to west.
     
  14. Beanie Girl

    Beanie Girl Well-Known Member

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    All of Jacana is generally okay from what I remember, single level brick houses for the most part on good blocks of land close to the city. Well located with respect to its amenities. It's a 50-60 year old suburb I believe. The original residents are now mostly elderly pensioners but young families are moving in. Check the Hume Planning Scheme for overlays on the property you are interested in.

    Link on this page
    Hume City Council - Planning Guidelines and Zoning
     
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  15. Otie

    Otie Well-Known Member

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    Thanks. I have fallen in love with the old weatherboard/brick Glenroy homes on big blocks, but can really only spend 460k max, and that is pushing us really cashflow negative. I can probably just find an ex commission property within my budget in Glenroy if I'm really lucky.
    I can easily get something in Jacana quite under budget, on a good sized block. I haven't actually driven around Jacana as far as I know, but I have driven around Broadmeadows and to be honest it's first impression was pretty bad, I just pretty much did a u turn and got the hell out of there!
    Is Jacana as ugly/ghetto ish as Broadmeadows?

    Old houses don't scare me but Broadmeadows was just so ugly and confronting.
     
  16. MTR

    MTR Well-Known Member Premium Member

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    Then you won't like Detroit, you need a gun to view properties in this city:p
     
  17. Otie

    Otie Well-Known Member

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    Ha ha!
     
  18. MTR

    MTR Well-Known Member Premium Member

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    Jokes aside, is the property in Glenroy a potential development site? I have not looked for years now.
    I was buying in Broady during GFC.

    Another area that may suit is Thomastown, you still may get into this area, land has risen significantly over the last couple of years. I started a thread on my 4 townhouse Thomastown development you may want to view this.

    Thomastown and Lalor tick many boxes, relatively close to CBD, good infrastructure, rail

    MTR:)
     
  19. Barny

    Barny Well-Known Member

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    Your buying an investment property right? Won't matter so much what Broadmeadows currently looks like as its quickly changing. Most of those houses on huge blocks that scare you are being redeveloped with 3 townhouses per block or more. The area is also a major transport hub, trains and busses will get you anywhere you need to go. Id prefer Broadmeadows over jacana any day.
    Glenroy is a good location and I've always liked it, but your buy in price is 200k more than Broadmeadows and it's only a few minutes up the road. If your looking at buying a place and hoping it goes up in value then Glenroy would be the go from a everyday perception point of view. But having other options now, such as development might make you more cash overall.
     
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  20. Beyond Wealth

    Beyond Wealth Active Member

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    How do you define 'not too far'? There's a big CBD distance difference between St Kilda and Epping, for example.