Sunshine West VIC within earshot of station

Discussion in 'What to buy' started by ELYAS, 16th Nov, 2019.

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  1. ELYAS

    ELYAS Member

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    Hey there, just wanting to get some opinions on Sunshine/Sunshine West, specifically within walking distance (20 odd min) to sunshine station?

    Looking for something immediately rentable that has a decent prospect of capital growth.

    This property looks good to me, would this be a good example/heading in the right direction?
    50 Glengala Road, Sunshine West, Vic 3020
     
  2. Qdog

    Qdog Active Member

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    Yep, good. Great area but on a busy road. No potential for subdivision. Old kitchen. Rent will be low maybe 380pw

    Cate Bakos a well known buyers agent out of Yarraville recently went 50/50 with her son in sunshine west. She is also open for a chat if you are serious and want a pro's opinion.

    Have you looked into the sunshine "super hub"?
     
  3. ELYAS

    ELYAS Member

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    I understand the Superhub will be focused around the station so this might benefit pretty well from that? Any chance they’d re-zone and allow subdivision after the superhub is complete? Not really too hell bent on subdividing anyway but it would be nice to have the option down the track.

    We went to the open last week, the street it’s on is semi-busy, true. Will probably only get busier but at the moment it’s the closest to the station and doesn’t require immediate attention out of what’s available.

    Thanks for the reply mate.
     
  4. Qdog

    Qdog Active Member

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    Everything is a relative chance I guess, who knows unless your a developer with insider knowledge. Wouldn't be banking on a long shot (which you aren't) just focus on sound fundamentals (which you are) and let the purchase price and then the location do the have heavy lifting.

    The market is already moving in this area so I'd get in fast but dodge the emotional buyers cos there is some crazy prices still getting paid!
     
  5. ELYAS

    ELYAS Member

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    Yep, I was at the auction yesterday. Went for $690 after a quick fire battle. Couple of lessons learned but one being that we gotta get in asap.
    I think this little Sunshine West pocket on or off Glengala and as close to the station as possible seems to be it at the moment.
     
  6. Qdog

    Qdog Active Member

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    Honesty, expand your area. Look at a 20min-ish walk from both Albion and Sunshine stations if you are set on this area.

    I'd ask why this area? If you're not planning on living in it now or as a possible back up for the future because your from Melbourne, Australia should be your market. Some trusted and proven buyers are nation wide and run constant analysis such as Empower Wealth and Metropol to name a couple. What's 5-10-20-30k spent and advice and services when your dealing with 100's of k over 10-20 years.

    You might be more of a expert than I so I'm just randomly throwing that out there, may help
     
  7. Qdog

    Qdog Active Member

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    I love the area but for my own very specific set of circumstances
     
  8. ELYAS

    ELYAS Member

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    Nope, I’m definitely no expert mate.

    I guess it’s just ignorance and trying to keep a sense of comfort Qdog. I know the area, have a decent understanding that the area has everything it needs to experience good capital growth.

    I’ve never thought to use anyone’s “services” in property investing because the only experiences I’ve had took my trust when I was younger and screwed me, it left a sour taste in my mouth and I don’t trust anyone claiming to help me invest my money for a fee any more. I wouldn’t even know where to start or how to tell the honest ones apart.

    Maybe I’m still ignorant, are there really people out there that will advise you what and where to buy, where it’s not their own development or they don’t have a financial interest in it? I may be willing to change, but I’ve always thought you’re on your own in this space.
     
  9. Qdog

    Qdog Active Member

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    Unfortunately you story is a common one.

    Yeah, the is a whole bunch of trustworthy advisors out there. You can pay for someone to seal the deal on a property to reverse engineer back from your retirement goals to figure out what yield or cap growth you require in the next acquisitions.

    I have buyers agents, accountants, mortgage brokers, lawyers, property planers, real estate agents or builder mates I can lean on well as data apps I subscribed too. None of this is necessary depending on your individual needs/ wants but some pro advise can't hurt... unless you get hit by a sprukier

    Do you listen to podcasts or willing to try?
     
  10. schmucky

    schmucky Active Member

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    Market running hot in Sunshine.

    81 Monash Street - Sold 1,097,000 on 23 Nov 19
     
  11. Qdog

    Qdog Active Member

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    There definitely is an upturn in Sunshine but "Matthews Hill" has a premium price tag anyway.

    Check out this one. Growth Zone ambitions gone crazy! 16 Westmoreland rd - $920,000.

    $595,000 for a 2 bed until also
     
  12. Mark

    Mark Well-Known Member

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    Have you considered investing interstate? You should be able to find properties with better cash flow and capital growth potential in other capital cities. Different cities are in the different stages of their property cycles. Timing is important in property investment. I greatly benefitted from investing interstate.
     
  13. ELYAS

    ELYAS Member

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    Apart from Rogan on youtube, I don't listen to any property podcasts Qdog, but I am open to suggestions if you have any mate, especially if they're geared around the here and now.

    Define "considered" :) - i mean, yes I've considered it, but have I actually gone there and studied and seriously thought about putting my money in a property across the country? No. I did consider Tassie, but apparently the capital growth ship has sailed and it's more of a high yield investment.
     
  14. Mark

    Mark Well-Known Member

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    I entered the Hobart market a couple of years ago. It is not a good time to buy there anymore. Have you considered Brisbane, Perth and Adelaide?
     
  15. ELYAS

    ELYAS Member

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    Same answer regarding consideration my friend. Tell me more about them. What are your thoughts about Brisbane, Perth and Adelaide? Personally i think they're cheaper to enter into, but also will be growing at slower rates than Sydney and especially Melbourne over the next 20 years.
     
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  16. Mark

    Mark Well-Known Member

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    If you check the property data of the last 20+ years, you probably will find some cities did better than Syd and Mel. The main reason that Brisbane, Perth and Adelaide did not experience the boom as Melbourne and Sydney is poorer economies. However, this will not be like this all the time. Once the economic condition improves and more jobs are available, the high rate of growth will come. Please also keep the affordability of housing in mind. More people will move to states with cheaper housing when they are priced out of the states they are currently living in. Prices in Mel and Syd can not keep going up as it is not sustainable. This is why we had a downturn in the two cities in the last two years.
     
  17. Qdog

    Qdog Active Member

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  18. Qdog

    Qdog Active Member

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    I agree with everything you've said previously but I will argue that:

    1. If your looking at a 20 year time frame like you mentioned, "timing the market" is mostly irrelevant (I'm not talking about boom towns) and buying a property with great fundamentals when your cash flow allows is mostly what matters. Focus on how to hold first and foremost and go from there.

    2. Property prices in Melb & Syd are not sustainable is a complete falsehood IMHO. I could go on about this topic for a long time! Look at other "international cities" around the world, add in Melbourne's most livable city tag and the prices look cheap! But yes, I totally agree that these 2 cities provide a ripple effect to regional markets and other cities because of affordability.

    3. The downturn had little to do with prices being to high (markets go in cycles regardless) and everything about the macro pru's implemented.
     
    Last edited: 28th Nov, 2019
  19. Mark

    Mark Well-Known Member

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    1. I agree that it would be hard to predict which city will do the best in 20 years of time as these cities could be at different stages of the property cycles after 20 years. However, I believe it would good to achieve the max gain in the medium term (e.g. 5 years). It will give you lots of choices with lots of equity in the property. The low yields of the properties also make people lose money if there is little growth for a long time.

    2. I think property prices would be sustainable if the growth rate exceeds wage growth too much. A responsible government will also intervene in the market to maintain the affordability of housing and maintain the stability of the economy.

    3. Even if the government bodies do not intervene to curb the booms in Mel and Syd, these two markets will slow down by themselves due to affordability and more supply. The government got in to avoid a crash as it can be destructive to the economy. The Ireland property market crash is a good example.
     
  20. Qdog

    Qdog Active Member

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    We'll have to agree to disagree. Our root philosophy around property is clearly different and my opinion had EYLAS in mind.

    I wouldn't advise a beginner in EYLAS to invest in property with as little as 5 year outlook when obviously he/she clearly won't be an "active investor" and more of just a buy hold strategy, wouldn't you agree
     

The shift to the regions has been quite profound with Millennials and Gen X leading the way. It seems affordability, lifestyle, and working from home have been the key drivers from which these generations have been able to take most advantage.