VIC Werribee 2019

Discussion in 'Where to Buy' started by LLKK, 20th Apr, 2019.

Join Australia's most dynamic and respected property investment community
  1. sash

    sash Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    15,604
    Location:
    Sydney
    I sold mine...I bought it for 130k in 2007...sold for 426k at auction.

    I took this decision as the house required quite a bit of maintenance as it was older and weatherboard. The rent once I did a spruce up was only going to be about 300-320k. So I took the profits and will redeploy this somewhere else.
     
    Never giveup likes this.
  2. Mark

    Mark Well-Known Member

    Joined:
    11th May, 2016
    Posts:
    312
    Location:
    Sydney
    Many real estate agents would tell you something to serve their businesses. I have not bought in that region but did some research of that area. I think it is an area with long term growth potential. I think it will still go up In the short term mainly due to the lower rates and more relaxed lending policies. However, I think the overall growth in the next 3-5 years would not be great because of its current position in the property cycle. Importantly, poor affordability will slow the growth no matter how good the economy is. The negative cash flow of these properties also needs to be factored into your decision making. Although I do lots of research in property investment and have invested heavily in properties, my opinion could be biased due to my limited knowledge and experience. I suggest you talk to a couple of experienced investors with many many years of experience and then make the decision. Do you intend to buy or sell there?
     
    Never giveup likes this.
  3. Never giveup

    Never giveup Well-Known Member

    Joined:
    13th Oct, 2018
    Posts:
    1,537
    Location:
    Sydney

    Hi @Mark , thanks for the information.

    We bought in 2016 and being an interstate investor we are feeling that Victorian Law is bit tenant biased moreover local Property Managers are ok but not to the level we expect them to provide service hence ended up doing all the leg work.

    We are planning to go down next year and will speak to number of agents at the end it be our decision as being an IP it does provide bit of negative gearing. Current rent is approx 380pw.

    @sash has been investing in that area and many more but I am a very small fish compared to his portfolio ;)

    If we do sell and after paying CGT we can pour thatoney into PPOR we have bought recently and do some DR (as required).

    Let's see what future hold.
     
    Gypsyblood likes this.
  4. Mark

    Mark Well-Known Member

    Joined:
    11th May, 2016
    Posts:
    312
    Location:
    Sydney
    The property must have done very well since you bought it in 2016. My situation is different from yours. I am still in the accumulation phase and I would not sell a property if there is no considerable downturn risk. If I reach my borrowing ceiling, I would sell low growth potential properties and replace them with higher growth potential ones. Saving 3-4% interest on PPOR loan does not interest me.

    If you do decide to sell in 2020, I think there is no hurry to do that immediately in the new year. You may consider sell it in the second half of 2020 as I think Mel is experiencing a small boom at the moment. Personally, I think Werribee has more potential than most other Mel suburbs.
     
  5. Michelle Evans

    Michelle Evans Well-Known Member

    Joined:
    18th Oct, 2017
    Posts:
    257
    Location:
    Bacchus Marsh
    Victorian law will be a challenge for some once the new changes come in, but a lot of these changes are happening in NSW and QLD too. I still think property is the way to go. If you have a proactive agent who knows what they’re doing / has a good relationship with your tenant then it should be fine.

    Some of my owners in Werribee have done very well / capital growth wise, modest renovation, renting to long term tenants... but have also seen some pay too much for very poorly maintained properties, then not budget to fix it properly to attract a quality tenant. They then give a poor quality applicant a chance because they’re financially stressed then get upset when the rent isn’t paid on the day it’s due (which is the day their mortgage is due and they have no buffer).

    After 3-4 years some are selling so they bring in the capital growth reward. Long term, I still think there’s room to grow, you just have to prepare for the lower socio-economic demographics as part of your overall plan to succeed.
     
    Never giveup likes this.
  6. Omnidragon

    Omnidragon Well-Known Member

    Joined:
    17th Oct, 2015
    Posts:
    1,693
    Location:
    Victoria
    Pretty pricey for not too much more distance advantage vs some new suburbs