VIC Unbelievable prices in inner west melbourne

yeah but maybe it won't reach the heights of Reza, Maidstone but still a slight jump is better than putting your money in logan and paying ex insurance premiums, bad tenants and average growth.

 

Look at this one:

16 Menzies Street, Braybrook, Vic 3019 - Property Details

$760k! 2 Bedroom Weatherboard house, rent-able condition without too many renos. But 2.6kms to the nearest station (Sunshine) and this is going backwards from the CBD. Roughly 10kms or so from the CBD itself...That is $1258 /m2....not a far cry from say a Heidelberg Heights...

I use to frequent this area as soon as I got my licence because there was a late night La Porchetta there and friends used to live around here. TBH, it looks badass but no worse than Heidelberg West, many were under privileged immigrants...

I've said it once, I'll say it again, the only two reasons I think that is holding back the West:

1. Lack of a popular government secondary college. St. Albans is going good, however and Braybrook Secondary College is not bad...
2. Lack of a popular university, Vic Uni just doesn't cut it reputation wise vs Monash or Deakin or La Trobe.
3. Lack of Green Areas: This area is traditionally made from Volcanic Ash I'm told?

First two you could change but not number 3.

 

Thanks @Xenia mine usually is

Remember "happy husband equals happy life"

 

it doesn't rhyme....but I like

 

If you can come up with a word that rhymes with husband you get a gold star

 

let's settle for 'happy spouse, peaceful house', otherwise Xenia put us both on ignore.

 

Im using that one. @Xenia would never ignore us

 

Can u tell Vickory to pack his bags for me Hodgey?

 

It's an investment, getting into that suburb again shouldnt be the focus, maximising returns shouldbe surely?

Besides, if the market is near the top and likely to plateau for a bit (if not drop slightly), then why do you think you wouldn't be able to get back in if you sell at the top, use the profits elsewhere and then have the opportunity to buy again here, should you choose, over next couple of years of prices prob not going anywhere? Also I wouldn't ignore the fact that you're likely foregoing 30-40k per year holding this vs putting the money in a higher yielding investment, even 3 years of a flat market is the equivalent of acknowledging upfront you are likely to be worse off by up to 100k

Ultimately it's a fantastic result and of course you should do with it as you wish, just providing another pov because if I were in your shoes I'd be seriously considering flogging it off.

Even after CGT and selling fees, if you cleared say 500k (no idea what LVR you had prior) tgat cab go a long way.

Have you retired or are you in position to?

 

No way ... never.

 

Happy husband happy husband.
That's my aim at least x

 

Lol. Talk about over capitalising! What were they thinking!

 

You make a good point and one that I have thought about. Problem i have is once I sell I'll have CGT to pay and stamp duty on the new purchase. I'm leaning towards just withdrawing equity at least that way CGT isn't an issue and can still reap any future gains.
I've only ever sold 1 property and I regret it everyday!

I'm 32 so years off retiring however probably could semi retire if I sold the entire portfolio.

 

The CGT will be about 150k give or take 10% or so, with a couple of decent assumptions there, is top tax bracket, 50%cgt discount etc

As per my previous post, the amount you'd lose in potential higher income elsewhere not being earned with those funds plus holding costs here etc over next few years until next price surge will pay for your CGT IMO.

Another way to consider it is this, would you buy your property today at what it's worth , considering market sentiment and what I assume is a pretty low yield? If the answer is a no then it's really only CGT to consider as it could be one of those that was a fantastic investment up to now and potentially nowhere near as successful in the future

I personally don't believe in the whole never ever sell ethos, not unless there's something specifically justifying that ultra long term strategy because so much can change over time, it's impossible to say that a standard resi property/s bought today will still be the best way forward in 20 years but essentially that's what never selling kind of is locking yourself into

 

I've spent the last half hr trying to find this page:
Melbourne's $600k house price affordability line • r/melbourne

If you read the detail in this web page, it becomes pretty clear why the western side of Melbourne is behind the East!

 

Strong arguments, someone I know got a cash offer of $5m from a chinese developer back in '02 for a property in Sydney, it had potential to go up many stories.. He had bought it for literally less than a tenth of that a few years prior, had the $$ signs in his eyes and thought land would go up forever (commercial though, so the margin of movement is significantly different to resi)

Only 2-3 years later and he couldn't have sold it for $2m if he wanted to... ended up holding it many many years and obtained income from it, but he has mentioned that sometimes he wishes he had just sold and retired then and there on about 10-20 cashflow+ properties in Sydney.

The only accurate forecasting possible is the 20/20 hindsight vision when you look into the rear view mirror of time.

 

put it this way, as long as you dont refinance , its overflated at 1.3m, true value =900k, and falls to 900k in a crash

if there is no crash, its market and true value is 900k

then you win win!!

 

Could you maybe access equity to subdivide the block to build another house to rent out or a dual occupancy if there is room? I dunno how much subdivision is in Melbourne but you would be able to lock in the build cost until completion so you have time to save more money and just access equity at completion (depending on contract). This should allow some equity left in your property to safeguard your portfolio in the unlikely case of an extreme drop in value (maybe only be a slight correction which is unlikely to affect houses imo). I think theres a fair few people who developed in Melbourne to ask for a recommendation or two for builders. It could be safer to also to find a project manager too to ensure the building is done well too.

 

@Hodge give it to me and I can make the decision for you

 

You can take the massive land tax bill that comes with it