VIC Where to buy first IP in Melbourne under $540k?

Who cares...is it cheaper....and does it have amenities? Questions only you can answer...

 

Hi

Um....probably not.

Taking into considering what the OP is looking for, the North West Frankston area is impossible to offer a property to keep them happy. At a budget of $540k the only thing the OP will find is a very old apartment built in the late 70's to early 80's in a run down building or a boatshed that I admit will have fabulous views.

After looking in south east Frankston I was able to only find one property that could satisfy the OP's requirements and have provided a link to it below:

2 Casale Court Frankston Vic 3199 - House for Sale #125578402 - realestate.com.au

Perhaps the OP should consider looking at other parts of Frankston such as Frankston North "The Pines" which is the North East part of Frankston and perhaps parts of Karingal which is to the east of Frankston.

Regards,

alicudi

 

Thanks for your help everyone.

Alicudi, I did see 2 Casale Crt but I'm not a fan of the location - in a bit of a dead end of Frankston, not close to the shopping centres or public transport, and the biggest factor - it backs onto the main road/a reserve.

Thoughts on this one? 10 Camden Frankston Vic 3199 - House for Sale #125678614 - realestate.com.au

Checked it out today and it seems to tick all the boxes. Need to do some further research and due diligence but it's looking like the right first IP. Especially if they accept an offer of say $515k with a 30 day settlement to sweeten the deal. Tenants are currently living in there on private arrangement and want to stay.

 

Hi

Ok yes this property is in a much more central location v's the other property for sale in Casale Court. It is also much closer to Karingal Hub as it is less than a 1km walk.

Whilst the property you have found does have a location advantage I do think that the residential property market is very heated at the moment and we are at a peak of some sort so if you are wanting to resell with some capital gains in the short to medium term maybe it is best to hold off just for now?

Regards,

alicudi

 

Only concern with this property is that I won't know if it has termites until/if I get a pest inspection done... But I guess this risk and unknown comes with all similar properties.

Agree the market is heated at the moment - but just want to clarify that I'm definitely not looking to resell or flip in the short to medium term. I'm looking to hold the property and see it as a long term purchase which will hopefully return some decent CG to fund subsequent IPs.

Has anyone got any tried and tested strategies for how to present an offer to an agent?

 

There is a 2.3m rear easement on the 576sqm block - approx 16.5x33m.

Just want to keep in mind future potential for the property.

Is this something of concern - should I avoid properties with such easements? There doesn't seem like enough backyard to fit a second dwelling behind the existing, however I think there is plenty of space for a dual-occ or 2 small townhouses/units in the future?

 

Not every property needs to have development potential

 

Great point - thanks Greyghost!

 

OK I think I'm going to put an offer in for 10 Camden - 10 Camden Frankston Vic 3199 - House for Sale #125678614 - realestate.com.au

Asking price is 540k but agent is saying that 530k will buy it. No other offers at this stage so I'm tempted to offer say 515-520k however the vendor is apparently keen on 530k plus.

What is everyone's thoughts around this? Is this a valuable purchase? My only concern is that I'm paying too much for the property and will be on the back foot when it comes to building equity.

Also being my first property I'm extremely nervous!

 

Have you looked at other options in Frankston?

 

Yeah I have, these are 2 other options:
2 Casale Court Frankston Vic 3199 - House for Sale #125578402 - realestate.com.au
27 Berberis Crescent Frankston Vic 3199 - House for Sale #125603950 - realestate.com.au

I've ruled out many other Frankston options due to auctions (want to avoid completely), small or crazily irregular blocks, poor floorplans, second-rate locations, out of price range, etc.

The variance in listing prices and the median price of $515k for 3br houses in Frankston is making the decision quite difficult. Gut feel is telling me that 10 Camden is "overpriced" - but can you really snag a good deal in this market anyway?

 

I am probably going to get everyone in here disagreeing with me, but in a hot market "overpriced" depends on what market value is, which is very difficult to estimate correctly. What was market value just a couple of month ago can be very outdated information. Also if you refuse to pay 10 or 20k over what you "think" is market value, you might end up missing out over and over until everything is far out of reach.

This happened to me when I started looking in Sydney 3 years ago. I sure as hell wish I paid 20k (or even 40k!) over what I "thought" was market value for properties because I ended up paying a god damn lot more and for a worse place by the time I accepted that "market value" was well over what it was when I started looking (even though it has done very well in the 2 years since I eventually bought). God what an expensive lesson that was trying to save 10 or 20k, jesus christ.

Below market value is an important concept to understand, but make sure you understand more clearly how the meaning differs in a rising market and the consequences you may face trying to save it. Think about 20 years down the track when you have a couple of mil in equity in your portfolio - how significant is 20k really?

I also find that basically nobody on this forum discusses opportunity cost of waiting. I have not seen one single comment about it on this forum.
No one knows if we are actually at the peak and people who listened to the "no no don't buy now" mantra from 2.5 years ago really screwed themselves over massively. There is a risk to buying at peak for sure. There is also a risk to waiting. Don't discount this risk because it is real. You need to consider both of these two possibilities because they both carry risks. Unfortunately there is no clear answer and you are not "safe" by erring on any one side.

Anyway, expecting a bunch of people to disagree. Go ahead.

 

I personally prefer 27 Berberies Crescent. Rentable from day 1 without needing refurbishments or renovations. The other two looks like it needs some work.

Nope, I fully agree with your sentiment.

 

You can try for the lower quote but I think Frankston is still a rising market. Things might have cooled a little with the weather? I hope you're not creating competition by putting it up on the forum. Nice little house. The whole point of Frankston is you get a family house with a backyard.
Only thing is, are you confident that you can hold if the market suddenly changes? Rent is good there at the moment but probably won't fully cover costs for a long time. Vic yields.
Disclaimer: I have a house in Frankston.

 

On a totally unrelated note - I agree 100% with your signature.

 

Have you looked at those below? They are cheaper that 10 Camden crt and you won't be able to sub divide on any of the discussed in this thread anyway, so why pay more? With the budget you have you won't be able to buy in the best pockets of Frankston with current prices.
4 Stanford Court Frankston Vic 3199 - House for Sale #125500662 - realestate.com.au
1 Saltbush Glade Frankston Vic 3199 - House for Sale #125627370 - realestate.com.au

 

Completely agree with you Anthony, there is definitely a risk both ways and while I do feel I may be overpaying, the prices will continue to go crazy particularly when more FHBs hit the market after July 1. Had I bought 6 months ago, I could've bought under the 500k mark so I've been a victim of playing the "waiting game"...

 

Thanks everyone - I'll take a closer look at 27 Berberis and 4 Stanford.

Rook2017, are you able to elaborate on subdivision potential - is this because the blocks are less than 600sqm? What are the must-haves when it comes to subdividing in Frankston City council?

I feel that I may be overpaying in Frankston at the moment... and might need to look at say Werribee more closely.

 

Question for the forum: Do you think the onslaught of new estates and more "new" land in Werribee is going to be a concern? While in Frankston the land is more scarce and so that's where future value may lie?

 

personally I don't think it would impact there are pros and cons of both areas. It will depend on immigration.

Don't just read ppl hyping an area but try to read into the plans growth, visit the area. Werribee has a lot of infrastructure plans coming in. Similar to pt cook but prices of land have jumped 100K more than 2-3 years ago.and house prices are moving

Frankston has pros to being pre-existing and close to the bay, beach etc