VIC West Footscray, Mainstone VIC

I will be attending a few auctions in these area for 3 bedrooms townhouse in the next few weeks.
All those townhouses are starting 750k which most likely above 800k after auction.

My intention of buying those townhouse is to invest for the first 2 years and turn into self-living. After that when my kids grow up I want to move to east side of Melbourne.

So my concern would be :
1. The living area of these townhouses which are all around 150m2, is it overpriced for that small living area? Because I have noticed some of eastern area, price of many properties are already droped 5% or more.
2. I want to live 10km near to City because I work in city, I dont want to spend too much time on public transport.
3. I prefer east side of melbourne, but they are too expensive. However, I have seen some 2 bedders with two bath selling at 700k around Ivanhoe, is it worth purchasing??
4. Any suggestion If I invest in those townhouse in west footscray or maidstone. How is my investment will go in the next 5-7 years?
5. how about a well-condition 10+ years townhouse with larger area (a back yard and a front-yard )vs brand new townhouse with comparably small area (a small front-yard)? they are nearly same price, which one should I buy?

 

Also I really want to know where do you guys check out the government or local development news or plan? I am a newbie to those things.

 

I would preference West Footscray over Maidstone as it has a train station. Older properties are generally better value as they are usually bigger, cheaper and also give you room to renovate and generate growth. I'm not sure about two bedroom townhouses but I would avoid unless they are in a premium, high demand area as they could be more difficult to sell. That's just a guess though - maybe someone else can comment further.

No one can tell you what is going to happen in five years unfortunately.

 

Thanks for the reply. A simple question, When should I have a property check (professional helps)? before signing a contract or after???

 

Depends. If you make an offer subject to inspection that is accepted, do it after acceptance. If you are buying under auction conditions do it before.

 

Hi Jimkee

It depends on a few things

Are you wanting the benifits of tax depreciation on a new property? If so not sure if this would be affected once you move into it.

I live in Footscray on the boarder of West Footscray and would advise if your going to buy a town house you choose the closest IP to Barkley st with the shops and station a short stroll away. Banbury village oppisite the western bulldogs is now 8-7 years old its built on the Olymic tyres site might be worth looking at.

As a rule the closer to summerhill rd to the east is where I would start. Ashley St to the west boarders Braybrook tends to be more value over location. If your south of essex st then prices are higher as its a short stroll to Barkley St shops

Saying that Im in Footscray on the oppisite side of Summerhill rd and its only a 10-12 min walk to West Footscray station same to the Barkley shops

Older type houses seem to be built better over new somthing to note.

Happy Hunting

 

I like that area as well. However, the price is kinda over my budget which is 800k. I went to auction last Saturday, a two bedder townhouse were sold at 760k. This is ridiculous.
Currently, I look at the south side (on the other side of railway.), I have found an property at Robert St, with pretty good land size as a townhouse (approx 250m2) and with three bedrooms and two living which easily convert one living into a bedroom, but the property was built 12 years ago.

I am pretty struggling deciding if I should take this one (will be auctioned between 750k-800k). and I am also worried if that is something broken/need to be repaired internally which will cause extra money on this property. Also renting maybe an problem on this side of west footscray.

This is my first IP, I have so many concerns..

 

I lived in West Footscray for years mate and like many others I think the market's at the top of its boom in the area. I don't get why you'd want an IP in WF? Why not invest elsewhere where you don't have pay so much money? $800k for WF is ABSURD money, I don't care how close it is to the city and stuff, that's crazy money for a townhouse in WF of all places. You're going to live in the East for your kids (I'll be doing that too), why -vely gear yourself so much? Some points to ponder.

 

Hi Westie, well said. What you have said which is completely what I have thought before. That's the reason why I am wondering If I should put my hand on this area. Maybe I should save up my money and keep my eyes on the market.

 

Yes, broaden your horizons. Look at the 'Rat.

 

Agreed.
I was born and bred in West Footscray and currently own property in Maidstone.
If I had that much money to spend, it would not be on a townhouse in either suburb to be honest.
For 800k I'd look for some serious land component elsewhere(if you are prepared to negatively gear) or spend less in another suburb...

 

800k for a townhouse??? Crazy.

 

Yes...market is crazy nowadays but still people buying it...

 

You don't have to participate in the craziness too