What to buy for around $500K to $650K budget in Melbourne

Hello everyone,

I am looking to purchase a $500K to $650K IP in Melbourne.
Thinking about Werribee, Broadmeadows, Cranbourne etc
Wondering what you guys think? Any suggestions?

 

I bought my first investment property in Broadmeadows. Sold it with a loss. Low socio economic.

Werribee many house and land stocks. CG might be not too bad, but there are many properties for rent. Different story for properties in Werribee SC zone. So if you do buy, better buying in that zone.

I haven’t looked at Cranbourne, but also seems many house and land offered in the area.

I chose Frankston North. Limited stocks and less than 5 km to the beach.

 

Hows the Frankston North home going? Isn't that a low socio economic area too?

 

Yes but these days people are looking for place to live closer to the beach. With limited supply and high demand, it pushes the price up.

We bought an IP there for $455k in March, spent $40k on reno. Leased within a week for $400 pw. Not bad yield for Melbourne suburb, I guess. These days houses there sold for high $500k- mid $600k.

We were considering Werribee back then as the prices were similar. But considering there are so many newer properties for rent, we decided not to buy there. These days older houses in Werribee sold for low $500k. And just checked realestate.com.au, there are 180 of 3 bedrooms offered for rent
Only 17 properties offered for rent in Frankston North

 

I bought in 2017 and just sold it. I couldn't wait to get out of there. Frankston North is a true **** hole and I hope I never have to go back.

To top it all off I got a call from my real estate agent the day before my first open for inspection saying the Frankston Police rang him to let him know that some ice head in the street was being arrested out the front of my house.

The guy convinced the police that someone was in my investment property was in danger and was about to be murdered. The police then called the fire department who came, broke in through the back door and screwed up all the plaster and framing around the door. They left an ambulance Victoria blanket in my kitchen and took a crap in my toilet and used a face mask as toilet paper which wouldn't flush.

 

Spend the money in Brisbane. You'll get a better place closer to the city with better tenants. I regret not doing that instead of buying in the outer burbs of Vic.

 

oh my goodness…

Well, my tenant has complained about people jumping into the backyard, and found some needles at the yard. Hopefully not getting worse. Just look at the numbers

 

There's always going to be heaps of houso bogans there but I do think you bought at the best time. Lots of people sold their investment properties quickly and for cheap during Covid so you could pick up some bargains. Most houses are selling $570k to $600k now, more for the better ones on big blocks. Either way you're up. Hopefully you have better luck than I did!

 

What about a 2-br unit in Ringwood? Closer to the 650k mark though

 

Shaking my head...I've heard too many of these stories before....took a gamble in lower social places only to find out later it was a bad gamble in hindsight. My 2 cents - purchased in Heidelberg West back in 2017....50k over I reckon on hindsight. Found it really difficult to keep tenants as most bished the place was too dangerous.

 

Well I guess you are getting the rewards now

 

Go regional; 650 can still get you a decent CG property in say a Ballarat;