VIC Where to buy with $400K

Hi Guys

I used to stalk the forum quite a bit so thought I may as well make an account.

I started investing in 2014 with my first property being bought in frankston north for $250k. I then bought another one in frankston north for $260K. Both have been valued at around $430K to $450K giving me around $400K equity which is pretty good for a couple of years.

Anyway the bank has just given me a new loan for $400K I could possibly stretch this to say $430k if need be.

My question to you guys is where do you believe to be the best for capital growth with a purchase price of low $400's.

I was thinking Melton but apparently there is only bad to be said about the suburb.

Next I was thinking maybe Doveton or other areas.

I would prefer to only invest in VIC as i love to see the property in person.

What are your thoughts.

-Zyzz

 

Hiya

Do you have to stick with VIC?

Could you go a slightly cheaper property and pay for a BA in a different state/city?

Cheers

Jamie

 

I thought you were dead?!?

 

Hi,

Check out threads:

Melbourne or Canberra for an investment in 2017?

or

Has the sky fallen in Rezza?

 

for that price werribee would be the best option

as said elsewhere frankston north is rough but at 250K below the median - it had to rise some how and it did. congrats.

 

As I said in another thread(s), almost all sub $500K suburbs have issues, just people taking calculated risks in which part of the suburb is the best out of the bad lot.

 

I suppose it is a calculated risk - can't have everything - even clayton back in the day had issues (when i was in uni) and springvale (with the drug dealing on the streets). Ascot Vale some guys wanted to pay 1-1.3 mil for cottages (have u seen the Churchill st and ascot vale housing comm there?). Heidelberg heights was rough with the housing comms, now townhouses selling off haig street for 700-800K

 

I've seen 70s/80s non renovated but livable single story units (no shared driveway) in Heidelberg Heights thats going for mid 600ks to 700k. HH hard to say man, it doesn't give me that rough feel, especially towards Waiora Road/very deep south of HH but you do pass the odd overgrown grass/car carcass in the front yard house in every street in HH!

I don't think things have really "cleaned up" or gentrified in said suburbs to be blatantly honest. There is still the underbelly in those suburbs it's just that young families have moved in.

Google Weribee, Doveton etc and there is news of drugs, people being bashed or something bad. Heck Chaddy was in the news the other week, lucky to be alive!

Interesting fact: Camberwell in 2005/2006 Financial Year was ranked 10th in the number of welfare recipients (not sure of pensioners are on that list) and also 9th in terms of gang members recently, shocked me!

 

What are your thoughts on melton south. Very cheap buying at 300kish or do you think it's worth paying the extra 100k and going back into Frankston north? To be honest bad suburbs don't deter me. None are actually that bad in the scheme of things.

People were telling me not to buy in Frankston north because it was drug filled. Now I've made close to 500k in 3 years.

I have a feeling about melton near the train station.

 

I prefer Melbourne merely because I can actually go to the property and touch it. I can also do cosmetic work myself when need be.

 

What exactly is 'bad' about Melton?

I bought in Melton South and have absolutely no issues with my tenants. It's really not as bad as some people perceive it to be. @sash has also bought in the area.

I assume you're looking for an investment and not a PPOR? With $430k you'll be spoiled for choice.

 

Yeah just investment I still live at home lol.

I've read only bad things. People claim that as there is so much land in the west it will take a while before melton increases significantly. They also claim the rail line is not adequate to service the city.

 

This is true but I assume you're in it for the long haul? Or were you looking for a quick flip then moving your money elsewhere?

I also assume you're looking to buy an established property on a decent block of land? If that's the case then you needn't be too concerned about all the empty land or new estates popping up. Just avoind them.

You can still buy a decent property on a large plot, very close to transport, schools and shops.
For e.g: 28 Exford Road Melton South Vic 3338 - House for Sale #125333906 - realestate.com.au
A stone's throw away from everything!

Although not as crazy as Melbourne prices there is some growth in Melton. I believe @sash bought his a couple of years back for $150k (correct me if I'm wrong @sash) with comparables now selling for $340k. I bought mine not too long ago and I saw a recent comparable sell for $30k more. I know it's not much but I'm in it for the long haul.

Baloney! Rail line is more than adequate and it's currently being electrified. Only 40mins into Melb CBD.

Melton is far from being a very well connected, established suburb. If it was then property would cost a lot more. That's why I believe it's a great time to get in now and reap the rewards in the future. Just my opinion.

 

i bought for 155k....a friend bouhght in 2011 and paid 200k for a 1000sqm with house. he is planning to auction with above 460k plus

incredible rubbish feom people who have not been to melton boots on ground is super important for DD

 

Couldn't agree more Sash. @Zyzz, I encourage you to actually visit the area yourself and then draw your own conclusions. I've been there countless times before making the purchase and don't regret it for a minute.

 

Get a 1 bedroom unit around Elwood or St Kilda West in an old walk up block which needs a reno.

 

Hobart

 

@Air_Bender I've been there a few times and it does actually seem like an okay area.

And yes you are right, my strategy is just to buy and amass a portfolio so I guess I shouldn't be too worried about capital growth at this stage. I think I've just gotten a bit greedy with my quick frankston profit haha.

Thank you for the advice i really do appreciate it.

 

No problem at all. There's nothing wrong with asking for some advice now and then but you should always do your own due diligence.

Good luck with your search.

 

I would buy in F North, but I don't think you will get in for under 400. I had recently been looking and everything seems to bring closer to 450k. As you would know, the rental yield is still low so you will be forking out the difference.