VIC Western suburb options

Hi all,

I'm targeting to buy a IP at max of $650k (purchase price). I'm considering suburbs like St. Albans, Altona Meadows, Deerpark, Hoppers Crossing (based on my experiences with some of them and also reading through this great forum) due to their relatively close distances to the CBD. Among them St. Albans and Altona Meadows are my top choices. St. Albans has a lot of advantages like 3 stations, hospitals, close to freeway, close to shopping centers and Asian markets. Altona Meadows is also close to freeway and also pretty near water. However St. Albans has way higher crime rate compared to Altona Meadows. Their price ranges are pretty similar and within my budget. Rental yields are almost the same. Both have potential to subdivide.

They're very different suburbs that also makes me harder to choose. The most important thing to me is capital growth (I plan to hold for long terms - 5-10 years). Both is next to strongly growing suburbs Sunshine and Altona respectively.

Could any one please shed me some light? What would you choose if it were you? Also I'm a starter so I don't know much about property investments. If you have any suggestions on other western suburbs (I don't think I could afford other parts of Melbourne with similar distance - I think distance is a key factor to decide where to buy and hold for long term - correct me if I'm wrong) please let me know.

Thanks

 

What about Sunshine? And Sunshine West?

 

Hi Harry30, both are out of my budget range (max $650k). Forgot to mention I'm looking for houses only with block of land about 600m2+. Also sunshine West doesn't have station.

 

Maybe just outside for Sunshine West. However, if you go south of Wright St in Sunshine West, in the old Ex housing commission area (most have been sold off), $650k will get you a house with >650sqm of land. Not everyone likes that area, but it is changing rapidly. Close to the creek is also good.

 

Thank you. I'll keep an eye on it. Would you mind explaining why people don't like the area. Sorry I know very little about this suburb.

 

Most of the houses are ex-housing commission so housing stock is somewhat poor quality v other parts of the suburb. And there is still some stigma associated with it be a former housing commission area. But this is changing, like much of the western suburbs of Melbourne. Good luck with the search.

 

Altona Meadows does not have its own train station. You have to go to Laverton or Aircraft which is not easy (a lot of traffic). Schools are not great even compared to the Western suburb standard. St Albans has high crime rate, lots of cashed up Asian buyers pushing the price up. Hoppers Crossing boat has sailed and now is stagnant. Deer Park is quite segmented. So none of them look really promissing. With your budget, you can also look at Eppings. A lot going up there. Hospitals, employment, etc. Werribee is also a good choice.

 

In terms of st Albans have a close look at the zoning, it can have a big impact on how much garden space you would required if you developed (info via one of the other forum members).

 

Thanks @hieund85, I'll have a look at Epping. Would you mind explain:
- what do you mean by saying Deer Park is quite segmented?
- why Werribee is a good choice in your opinion?

 

Parts of Altona Meadows are a 5-10 min walk from Laverton Station via the bridge at Grace St. Not the nicest walk though.

 

St.Albans everyday of the week on those choices. If long term hold is your game then take a look at the Melbourne future planning out to 2050. Sunshine is pinned as one of the central hubs of Melbourne and will only get supported more once they finally build the CBD>Airport Rail. St.Albans has better schools, a uni and hospitals closer.
Me personally I wouldn’t get held up on crime statistics. Sure St.Albans still holds stigma but it’s diversifying and the Best Buying is done just before or during that stage. If you wait until all the riff raff move out to Melton then the boat will well and truely have sailed my friend.

My only concern is your budget. Not sure what your getting in StAlbans for that on a splitter block? There are definitely less desireable areas in St.Albans.

 

Agree but that part is not the nicest part in Altona Meadows. Too much traffic and noise.

 

Werribee is also tipped to become of of the central hubs. Unlike St Albans, there are still lands around Werribee but it is much cheaper than St Albans. There are also hospitals, unis, CSIRO, etc in Werribee. If the education city goes ahead (I doubt so in any near to mid future), it will be a big plus. There is employment precint, Avalon international airport, the link to the fastest growing regional centre (i.e. Geelong). Overall, Werribee is very underrated imho. Of course, I am not saying Werribee is better or worse than St Albans to invest. It is just a different but equally good option. P/S: I am not holding any stock in Werribee.
@reainvestor

 

LOL I grew up and lived in St. Albans for about 18 years and we were burgled only once in 2003. I moved to Chadstone and we got broke in whilst we were moving. My parents subsequently moved to Glen Waverley and were burgled pretty much within 2 years they moved in. The worst areas in St. Albans imho were back then was around the station - the block of flats on the Main Road West side. I attended the school way back in the 90s when it was pretty un-academic LOL.

 

But your missing one key factor which you note in your post and that is the price of land. Why is the land in Weribee so much cheaper?? Because simply there is land a plenty! The wider area is still under heavy development but people have the choice to either buy established or if not go a touch further and buy a block in say Point Cook and build.

There is land pushing out as far as the eye can see and that IMO is always going to suppress house values.
Y would I pay 1mil when I can buy a block for 350k and put a better 350k house on It and be out for 300k cheaper? Yeah I’m outside a bit further but I’ll take the 5 minutes drive and pocket the 300k.

There simply is no option to purchase a block of land in St.Albans and it’s surrounds anymore.

 

I grew up in Kealba so know the area well. We got broken into once in 20 years. At StAlbans I got chased once when calling my mum off a pay phone (junky thought I was talking to him!! Haha)
I have since lived in Southbank, Richmond, Boronia and now Niddrie. I have experienced more crime in ALL these areas compared to when I grew up. Yes times are changing and I’m more open to seeing and experiencing things but it’s why I think looking at crime stats in isolation is flawed.

 

Fwiw...I live on st Albans (we wanted Footscray, got priced out of sunshine and finally got a place st Albans) - nice street, all the neighbours know each other (good people too - some have been their since birth). Good schools close by and public transport a plenty...oh and more than enough pho places.

 

I agree with your point regarding land supply but I think you are too biased here. The comparison of St Albans vs Werribee is pear vs apple, very different price range. You can buy a house with 600sqm land for around $450k-$500k in Werribee while it is impossible in St Albans. Land price now in Werribee and nearby areas is damn high, $350k only get you a 400sqm block. You build a normal house and the end price is min $550k-$600k and you are so far away from the town centre and main amenties. The only thing that you get is a new shiny house. And the land price is not going to go down to $200k. Land release is well controlled by both council and developers. Not much land left in Pt Cook. Your argument about saving $300k is not appropriate since it will take a long time until Werribee reach the 1 mil mark which is more than double the median right now. It may take 10 or even 15 years from now. At that time, land price is not $350k anymore, will likely to be double. And build cost will also increase significantly. That means it still cost more to buy land and build than buying an existing house in the established area. And remember that Werribee centre is classified as a ACZ, similar to Sunshine while St Albans is not.
Again as I said before, Werribee is different to St Albans. They are both good investment options. Just different.

 

@hieund85 I never said Weribee is not a good long term investment. I’m comparing two suburbs in isolation and my analysis of the two has St.Albans in front. You may be right that I am biased but I have been a big supporter of the area going way back to the Somersoft days of me posting these forums. If only I had listened to my own voice (I have been stuck in a long term development)!

Now that’s not to say that Weribee isn’t ahead of hundreds of other investment choices in Melbourne because It Is! But in reply to this post then my money would be well and truely headed to St.Albans even if it doesn’t buy me as much. You said yourself prices in Weribee aren’t going to be in the 1mil for a long time but they will be there much quicker in St.Albans. If you are saying median is 500k and it could be as long as 15 years to reach 1mil then that’s fairly small gains in terms of property.

 

As other members have discussed here, the property cycle may change due to the tight lending environment, low (wage) inflation. Property will not double every 7-10 years anymore. It will take longer i.e. 15 years to make that happens. And I agree with that view hence I think werribee will need to wait a good 15 years to reach the 1 mil mark or even longer. And it is true to any other suburbs (in general of course). But anyways, everyone has his/her own view so we will need to agree to disagree even though I do not think we have much different view on investment fundamentals.