Unit in reservoir for $400-420k?

I am looking at buying a two bedroom unit in reservoir in Melbourne in the next nine months or so.budget no more than $420k.god knows how much prices will rise by then but hopefully not too much.
Anyone have any experience with investing in reservoir?its a huge suburb,would love some ideas on what areas to avoid
Thanks A lot

 

Whereabouts in reservoir ? There are so many parts to it

 

Preferably near the station,west of high street away from the more dingy areas

 

@Amber83 U talking more towards edwarnes lake etc and more to gilbert rd?
there are 3 stations in reza as well - reservoir, Ruthven and keon park ( anything close to broadway is going to be expensive) if you can get landed unit 420K then that is a good buy.

 

My experience (apart from growing up in Rezza), is having bought a townhouse in 1998 for 147K (3Bed,1bath, 1 car, own street frontage and driveway), and sold in 2010 for 421K.

Latest purchase is a 2bed/2bath/1car unit for $381, currently being rented for $400/wk.

Yes, near Broadway and oakhill estate has gone up quite a bit. In my opinion the couple of streets North of Donath Reserve are still undervalued, and you can now see some gentrification taking place that will ultimately push prices up in this pocket. The shopping strip along Johnson St has started to pickup, and this is evidenced by a few restaurants that have popped up along there (it had a slow death in the 80's, State Bank moved out and many shops closed, and stayed closed for a decade or so). The owner of the bottle shop will be building units/ apartments on top of his premises, and work has already begun on the townhouses on the old petrol station site. The recent apartment development adjacent to the squash courts has a high level of owner occupiers in there, so this is a good thing (this is my actual observation, talking to people, and some of the REA's that I knew from when we were kids.) My understanding is that the squash courts will be developed partially into apartments and an independent supermarket (taking up the carpark).
The train station is all of a minute walk away.

Some of you may say its not gonna happen, (to close to industrial area across Keon Pde, and the power substation), but seeing Reservoir transform over the years, I can easily see this pocket, especially close to the train station, pickup.

 

Thanks for the info!i need to do some good research about this.i think reservoir will be a good growth suburb Long term given location to cbd and other great northern Suburbs like Thornbury.when dos you buy your most recent property?was it easy to rent out?i don't know what vacancy rates are like in the area