VIC Where is Melbourne on the property clock?

I am also looking to buy... which suburbs are undervalued if you don't mind sharing

 

Although the general consensus is that if the strategy is hold long term you can't go wrong, maybe narrow down "Melbourne" a bit more. There's market within market.

Within the same suburb/area, there's pocket of space which is considered better/worse. Then there's debate around apartment/townhouse/house, OTP or not, etc.

Agree with all the aforementioned post, assuming you can service the loans, you may want to consider "splitting up" approach instead of "all in" approach.

The feeling of "Having a place called home", as we are talking about feeling, cannot be quantified by dollars. But if there's a way, simply look at the opposite approach, what is the $ turnaround, and then ask yourself if the $ is worth the feeling.

All in all, time is on your side, but then again, nothing will happen if you're not taking actions.

 

With a 300k deposit I will be looking at Melbourne and forget abt Brisbane. You are a in different level and strategy with that kind of money. Brisbane is good but with that kind of cash for deposit you better of getting a place in Melbourne with potential for sub division, development and has a higher chance of growth. Having a higher yield is only one area of one investing and to focus solely is really just one sided. You could easily buy a cottage in an upcoming suburb do a upper storey extension or even buy a property to get permits in the back. Also auction culture and demand is vastly diff in Brisbane and melbourne

 

Thanks porkbellylover.

I've been thinking lately what's financially a better idea: to buy IP and rent or buy PPOR and live in it?

I'm struggling a bit to stack the numbers.

 

Depends. Pure financially, assuming you spend the same amount of money in rent to the income you'll get from your IP, if your IP is either neutral/negative geared, you'll be better of with IP.

Search this forum for Tax tips in the finance section or speak to some of the finance expert (plenty in this forum).

Bottom line is tax. You can claim tax deduction from your IP related expenses, including the interest you pay on your IP, while PPOR doesn't give you any tax benefits.

 

ABS statistics and stuff like these are all macroeconomic factors looking at overall market. Melbourne has so so many sub-markets. Doveton is not a balwyn, or St Albans is no Mentone or Point Cook is no brighton. To make generalizations on a city itself is pretty general. you can pick suburbs in Melbourne that hasn't boomed or think out of the box how to make some coin.

Unless you are on the ground with eyes at auctions and going to inspections seeing the vibe, houses in stock, analysis on suburbs (infrastructure, planning, developments etc) how can one make an assumption that because it has grown, that it will not grow again. There are many other factors to consider. Obviously if you buy in a surburb like glen Waverley say 1.8 million dollar house you aren't expecting to grow to 2.4 million anytime soon like in 4-5 months. But if you go to suburbs buy 540K and it is now worth 650K. in 6 months that is still possible. Happened to my friend who bought auction result yielded that amount.

 

http://www.heraldsun.com.au/realest...m/news-story/864f5b8db1419d193c1ba629cfd68146

This is the latest one, with Melbourne, Adelaide and Sydney listed at 9pm, which is rising market, so that looks like Sydney's actually backed up a bit.

But one thing that ****** me off a bit about this clock, what's with having places like Orange, Burnie and Mildura in it, yet ignoring a a particular city that's about the 12-13th largest in the nation? Has Geelong been excised from Australia??

 

I would be looking at carrum downs, cranbourne. These areas are hot but still affordable and has a lot of growth drivers. I think they're underrated which is why I personally bought in carrum downs myself. I think with that kind of money you're better buying in Melbourne in some of the less desirable places with house and land attached that you can one day develop if you wish. That is if you're not chasing yields.

 

TBH, the auction culture ****** me off in the current hot market of melbourne. Anything a bit decent is for auction.. and you have to wait a few week until the auction finally starts

 

hey Albanga, could you give some examples of such suburbs that you speak of?