VIC Where to buy in Melbourne for $1M investment?

Hi all,

We are planning to buy an investment property in Melbourne, around $1M-1.1M mark. Started to look around, no pressure to buy as the prices are still softening.

Long term goal:
- Capital growth: we may renovate and sell when the time is right. If Not, happy to hold on to it.
- Good public secondary school: just as a preferred option to prepare for our son and good schools will have better impacts on house prices.

We have a few options but want to ask for your thoughts on which would possibly deliver better capital growth:
- A house in mid-ring East (preferably Box Hill): leafy suburb, good school, a lot of developments, 2nd CBD as we keep hearing, etc. Now Asian money slowing down, so perhaps may get a good deal as Box Hill prices has dropped significantly. We may need to stretch with out budget. We went to an auction last week. 45 Pendle Street, Box Hill sold for $1.1M, perhaps the worst house in the best street.
- A house in inner suburbs (e.g. Northcote, Thornbury): close to city, Northcote High School, higher rent, perhaps more demands for rent.
- Any other suburbs that we should look into

Thanks in advance.

 

Doubt u would anything livable in those suburbs in those price range.
I was going to say Rosanna or Heidelberg, but you would need to stretch your budget a bit to get something livable.
Some examples
90 Hodgson Street Rosanna Vic 3084 90 Hodgson Street, Rosanna, Vic 3084
This needs lots of work
5 Leon Avenue Rosanna Vic 3084 5 Leon Avenue, Rosanna, Vic 3084
Sold prices
Corner block
82 St James Road Heidelberg Vic 3084 82 St James Road, Heidelberg, Vic 3084
54 Quinn Street Heidelberg Vic 3084 54 Quinn Street, Heidelberg, Vic 3084
Viewbank is cheaper, but public transport is poor and nothing there other than lots of nice park lands and good schools
Other option is outer east, mitcham and ringwood, should get decent house on decent land for 1.mill, look for ringwood secondary zone or Vermont but need to move away from train lines

 

Thanks Triton. The plan is to rent it out for the next 5 years, so a bit rundown or need some work is fine.

$1.1M is a bit hard to get something in Box Hill. But I think the price range is still ok for Thornbury. e.g. 20 Woolton Avenue Thornbury, private sale at $1M, nearly 400sqm. The house condition is not great but still livable, still have some tenants for the many years.

 

North is dirt cheap

 

Past reservoir, yes

 

You sure? Woolton ave looks like a townhouse development, you won't get anything in thornbury with 400sqm for a mill

 

Ops, I meant 120 Woolton Ave. Def approx. 400 sqm or close to. I have been to one inspection. Agent said they had had offer for $950k but the vendor is after a bit higher. She mentioned $970k couls work.

I think it depends on where about in Thornbury. If between High Street and St Georges, it may be difficult to get something for 400sqm for $1M. But if on Victoria Road/Street where it's not close to train/tram, it will be more feasible in this market.

 

Hi Bidi
One good option for purchasing property for investment is to buy a development site.
2019 is a very good time for this and then you can quickly escalate the value via. development in one form or another.
There are many ways for this to work for you and your exact goals/aims should determine what shape this takes and where.
Getting Town Planning Permission for units in some ways adds more value than a renovation would and is obviously much cheaper and easier. Whether you build the units or whether you flip with the permit can be decided later.
We have done this ourselves many times and also help a lot of clients do the same.
Development directly for the property owner is very much a 2019 option.