VIC VIC $500,000 recommendations

Discussion in 'Where to Buy' started by K168, 23rd Oct, 2021.

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  1. K168

    K168 Well-Known Member

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    Hi All,

    Looking for investment recommendations in VIC.
    $500,000 budget
    Prefer larger land block sizes 600-700m2 +
    Older house that can be rented, doesn't need to be new

    Getting priced out of Melton, Werribee and Pakenham with that price range.

    Would consider rural, but know nothing about it.
     
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  2. HonestShiba

    HonestShiba Well-Known Member

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    Thinking you'll probably have to go regional. Land alone for a block 600-700m2 will be round 500k
     
    momentum26 likes this.
  3. The Y-man

    The Y-man Moderator Staff Member

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    It is good that you have some parameters - but why that combination?

    eg why not a townhouse on 200sqm?

    The Y-man
     
  4. K168

    K168 Well-Known Member

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    • I find that larger land has done me well in the past and just basing the future on past experience
    • If I buy a townhouse, I am just paying the developer for a premium
    • I eliminate my future prospects of developing myself
    I just haven't seen the value a townhouse can provide. Cashflow is thousands-tens, but capital growth is tens-hundreds. I could be missing something completely.
     
  5. Westie

    Westie Well-Known Member

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    Some areas of Geelong fall in that range.
     
  6. Calder&Scale

    Calder&Scale Well-Known Member

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    I'd be looking at Bendigo or Ballarat at that price, Wogonda or Traralgon would be a bit cheaper.
    For 500k in Pakenham and Werribe you might only get a 400sqm house and land, there 5 million houses EXACTLY the same as yours and they just keep releasing more land - how can you expect price appreciation?
     
  7. D.T.

    D.T. Specialist Property Manager Business Member

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    Probably priced out of Melbourne, consider other cities
     
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  8. K168

    K168 Well-Known Member

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    From some basic level research I have done the other cities such as Brisbane and Perth were not providing the same level capital gains for buy and hold. They really required timing the market and selling or developing.
    What is your opinion on this.
     
  9. momentum26

    momentum26 Well-Known Member

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    Why not bank on the gains whenever & whereever you can. Don’t you think that would be over analysing it? Just my personal thought.
     
  10. K168

    K168 Well-Known Member

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    just havent ever used this strategy before so I am not familiar. Do you rotate buying between capital cities and bank the increase and purchase into the next capital city based on the different market cycle.
     
  11. sash

    sash Well-Known Member

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    You must want things diamond encrusted....last time I looked heaps in Melton for under 500k....so long as you are looking for blocks 500-600sqm. I see amateurs keep looking for the unicorn...and then market moves and they never get in. Why only 600-700sqm blocks?
     
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  12. K168

    K168 Well-Known Member

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    600-700 can usually fit three townhouses on but a 500-600 can only do dual OCC.
     
  13. sash

    sash Well-Known Member

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    Hmmmmm.....TH in Melton huh?

    Are you sure you want to do this?

    165k per site...plus 250k plus per build...add another 50k for DA, sell and hold costs.

    Do ya thunk it is worth it? Break even is 465k.....to make a decent profit you need to sell for 580k....25% net margin.
     
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  14. K168

    K168 Well-Known Member

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    Wouldn't build now, only a few suburbs in the multi million dollar range can make margin at the moment. It will be land banking until overseas migration return and material costs return to normal. Not restricted to Melton, open to other areas - just explaining my criteria.