Sub dividable blocks under $400k

What about around sunshine like sunshine west/north , st albans - Have a look at Realestate.com.au at sold prices there are some good buys still around. Not as familiar with Jacana though so not sure what is better but seems that there more infrastructure around sunshine and spending going on.

 

What is it about jacana and Broadmeadows area that you like?
Not saying it's bad, just curious

 

Have looked (only online) at St. Albans and looks like there are still some properties that could work well for me, haven't actually been out there and gone to auctions/opens yet, that's my plans for Saturday, my main concern is they mostly appear to be a little more than I was intending on spending and the low yield initially. Not too stressed about yeild if CP is great though and with the infrastructure being put in place that's seems like a real possibility

 

Don't know too much about the area to be honest, the main things that I've noticed is the ability to get a property with some development potential that still gets a decent yeild until I'm ready to develop.
For example a corner block currently renting for $350 per week (apparently) will sell in the mid $300,000s, I don't think it would be worth trying to develop it straight away but would be ideal for me to sit on for 5years.
The other thing is working with the numbers above I would almost immediately be ready to purchase another property, where as a property (st Albans area) where I pay over $400,000 and get only $300 week per rent will limit my serviceability for my next property.

 

If you have any negative thoughts about the area is be more than happy to hear them @Barny
The more thoughts about the area the better!

 

I tried to buy in Broadmeadows 4 years ago. Was looking to buy a place to retain the original house and build another one at the rear. Every time I found one, I was outbid at auction past the profit margin by a home owner. Tried to buy prior to auction but no go. I got fed up with the area and moved on with a different deal elsewhere. I should have bought a big block back then, and developed the whole thing properly today. I like Broadmeadows and if your numbers stack up, I'd buy.

What you seem to be doing, is pretty much what others are doing. People are priced out closer in, and just buying slightly further out within budget.

REIV - Median Prices

Going by the map, all the lighter colours have medians under 450k, and both St. Albans and broady fall into the similar buy in prices.
I like Broadmeadows as it has a big transport hub. You have buses/trains that can link you anywhere you need to go.
St. Albans I didn't like, only because I couldn't stand the smack heads around the place when I had to visit my bro when he was living there years ago, and heaps of crime. When they moved out and leased their house the tenants turned it into a drug lab. That was interesting as the agent was involved. I don't know if the area has changed, and I don't know enough about it from an investment point of view.

In in regards to cashflow, if you're going to build later and it's negative now by 50per week compared to Broady that's 2600'per year. In 5 years that's 13k.
13k isn't massive if your gonna make a serious profit from your build, if that is.
So you need to make sure which area you like the best, and has the best possible speculative outcome for the next few years. I say speculative, cause if your numbers don't stack up from day 1, then you can only sit with it, and hope it increases in value while it sucks money from your pocket each week.

 

That's interesting about Broadmeadows, it's probably a positive that people are buying the houses as PPOR, not that it helps while trying to get into the area though.

I think it's pretty tough to find any areas around Melbourne that you can subdivide straight away and make reasonable profit (unless you're a builder and make money on the build).
You're 100% correct though I am just after some land as close to the cbd as possible (obviously a few other considerations) within budget, my view in the simplest form is that they're not making any more land so keen to get my hands on a few nice blocks and bide my time to a certain extent then get into a position to develop them myself, I'm only 26 so time is on my side.

That sounds horrible about St. Albans but I suppose there's nothing you can do if the agent is in on it too!

The $50 a week isn't the big deal in terms of paying it (I'm a tradie so can always do a few cashies to increase cash flow it's more the extra $60-80k loan and how the banks view it for serviceability, but you're 100% correct in that finding the best property/area is number 1 priority