VIC Thoughts on North-West Melbourne

Discussion in 'Where to Buy' started by ELYAS, 19th Oct, 2019.

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  1. ELYAS

    ELYAS Member

    Joined:
    16th Jun, 2019
    Posts:
    18
    Location:
    Melbourne
    Hey all, looking for some direction regarding this property:
    18 Peradon Way, Hillside, Vic 3037

    18 Peradon Way, Hillside VIC 3037, Australia - Free Property Report

    This will be me and my wife's second investment after buying our house in the same area in 2013. We have an apartment in Coburg which was bought in '09 as well. Do you think this would make a good investment for consistent capital gains and strong yield? Current average is 3.2% for the area apparently... but with no real direct comparisons available for rent in the immediate vicinity, it's hard to accurately estimate what I could get for it. I would assume $450pw which would yield 3.39% if property purchased for $690,000.

    We currently owe $390,000 on our house (valued at $750,000) and paying down way overs, at $650pw comfortably. The apartment has done sweet F-all. Owe $280,000, worth $300-320,000. Taking $350pw rent and basically covering repayments on that. Was on interest only for around 5 years, just came off that as I'd prefer to start paying some more off it.

    To throw a spanner in the works, if we buy a property like this, we'd also drop $100K on our own PPR to freshen it up and stay here for a while. Alternatively we've also discussed buying an acre+ out in Gisborn or Riddles Creek for lifestyle purposes and rent our current PPR out instead. I don't think that would be a silly move either, as big land like that only an hour out of the CBD, can't imagine it not doubling in value over 20 years. Given we only owe $390K on our current PPR and should be able to get $450+pw, repayments would be well covered.

    Any help in getting my thoughts on track would be great...

    Thanks. :)
     
  2. ELYAS

    ELYAS Member

    Joined:
    16th Jun, 2019
    Posts:
    18
    Location:
    Melbourne
    ...tough crowd. :confused:
     
  3. craigc

    craigc Well-Known Member

    Joined:
    25th Jun, 2016
    Posts:
    1,229
    Location:
    Melbourne
    Sort out your short & long term goals first and then work back from there.
    Given limited info about PPR status & remaining debt, you could also potentially debt recycle for new IP but read Terry’s tax tips as not clear from information provided.
    Good luck!