Thinking of a house with decent land for possible duplex/triplex development. Why is the area cheaper than other areas this close to the CBD? Is the airport an issue? Flight path, noise etc.
There are a few threads over on Somersoft on Sunshine. Quite a bit of competition for 600Sqm blocks. We just bought two weeks ago. I think it will do well long term.
Things and prices are changing in Sunshine. I just had a client message me saying that a home has sold for 815K. Flight path or noise is no issue, I live in a nearby suburb called Deer Park and to be honest the noise is no issue. Look at the bigger picture
Sunshine suffers the usual stigma in the western growth corridor - however, poximity to the city is the key consideration, it is 12 km to the CBD with great train access, the 'revitalisation' will change the landscape in the coming years - perfect for the investor imo. Choose carefully - look for townhouses for the investor and developers are hunting to find the right deal. Cheers, Ivan
Hi pins - depends on the objectives of the investor, a house for me does not produce a 4.5%+ yield whereas a TH can. A house is for the developer, i.e buy and develop and TH is buy hold and earn capital growth and yield... Depends on the individual and purchase price. Still proximity to the city means Sunshine has great prospects going forward. Cheers Ivan
Sunshine. Just do it. It's definitely an excellent area to invest. It just has the west-side stigma. No doubt, more people will realise the practical benefits of living so close to the city.
Which suburbs will benefit from Sunshine's improvement and growth? How far will it ripple out? Albanvale? Deer Park? Kings Park?
I ve been taking a close look at sunshine for the past few months trying to secure my first IP. However I finally gave it up and moved to somewhere else. There are two major things stopped me from keeping looking in that suburb. 1) extremely low rent 320pw, which means more ongoing cash burden. negative gearing. 2) there do has lots of good things going on in that suburb such as infrastructure improvement, in great melb plan as western hub, anticipated population growth etc, affordable price and good transport makes it has potential strong demand, but my concern is on the supply side, there is still fair amount of land vacant and undeveloped in and around sunshine let alone outer west. if supply can catch up with the demand, I can not see the housing price there will beat average growth in the long term. we do see price is up dramatically in the past 24 months however i reckon it s mainly pushed by developers keen to grab a bargain land in current hot market. Michaelidis asked question about why this area is cheaper than others with same distance to cbd. I think it s his bad name (used to be called scrumshine ) that keep most people away. personally I do not think it will change its reputation any time soon. though we do can the cosmetic reno is taking place in the area. I am new to the site and to property investment. does my thought on sunshine make sense?
That’s a good analysis of how Sunshine is here and now. However, rent will increase over time similar to CPI. Melbourne’s population is increasing by 90,000 people per year so they’ve got to live somewhere. Melbourne is a fairly well planned out city in the sense that there is plenty of land in all directions. However, eventually that population is going to catch up and we’ll see people willing to pay a premium for being within a close distance to the CBD. Areas like Richmond used to have reputations for being bad areas but now they are million dollar suburbs. Richmond will never be Toorak but it doesn’t matter as long as the land is increasing in value.
Yes. I was thinking the similar concept. I will continue to look at other areas, maybe East or north abit further out from the city if that's the case.
I was struggling about the idea of giving up in that area due to its affordability and great public transport system and network. It is in the process of transformation .no doubt about that, but just not sure how long it will take. rent in that area will not rise any time soon if you have walked around that area, you will know what I mean. It will put lots of pressure on my future cash flow and unfavour my serviceability when it comes to borrowing. I prefer playing a safer card by looking at areas with land scarcity and potential undersupply. not sure where to look.. it seems price soaring everywhere in current hot market.
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