VIC Where to buy with $460k budget - Melbourne

Hi All,

Looking for my 2nd IP & recently discovered my borrowing capacity is now less than what it was a few months ago due to serviceability restraints (thanks APRA). So after all my research and inspections/auctions I attended, looks like I am back to the drawing board with my new revised budget of around $460k.

My goals/criteria are:
- Objective is capital growth/equity – not as concerned with yield/cash flow but obviously higher the better
- Looking for a house with some land
- As capital appreciation is the key, ideally something with potential to add value via renovation/subdivision
- Would prefer a property in Victoria, but open to the idea of buying interstate (seems like the Brisbane market overall is in a better position for growth than the Melbourne market)

Some of the areas I have come across/researched within my budget are: Werribee (although seems like I may be priced out already), Wyndham Vale, Melton, Geelong.

Curious to hear where people would suggest looking for my budget so I can narrow down my search.

As mentioned I am open to interstate but not as comfortable with the idea as I wouldn’t know the suburb as well as most Melbourne suburbs, so may look into a buyer’s agent if I did venture down that path.

Cheers,
Ash

 

I'm seeing lots of investor activity in Geelong and Ballarat for that budget.

 

Thanks Kate.

Any particular suburbs around Geelong?

 

Norlane, Newcomb and Belmont.

 

Hi Kate, What suburbs are you seeing investors buy in Ballarat? We are heading up there this Saturday to inspect and hopefully purchase..

 

+1
@KateAshmor - How do you feel Hamyln Heights & Manifold Heights compare against Noreland, Newcomb and Belmont - for local amenities, suburb quality and future value? Being closer to the city centre I would expect those suburbs & properties to achieve a higher price.

 

Only Ballarat East, @MaddyG.

Can't comment, @NWHT, I don't know Geelong. I only know what my clients are doing, so I spot the trends that way.

 

Shouldn't the thread be titled Victoria and not Melbourne?

 

Probably. Started of asking mainly about metro Melbourne suburbs but Geelong/Ballarat seem to have taken the limelight with the responses

 

where did you buy? with subdivision potential??

 

I would look at Pakenham, Cranbourne, Melton and werribee/Wyndham before Geelong.

 

Thank you for your tips, Otie! i have near 300k in SMSF, looking to recycle it by doing small 1-2 subdivisions, as it is hard to borrow to build within SMSF, except from myself or family members.

I know some Vic councils only allow you to subdivide after build a new extra. do you know where in Melb they allow straightfoward subdivision in an easy to sell market? thank you!

 

Sorry I have no idea.

 

Definitely Cranbourne West and Cranbourne for fast 20% growth.

 

Hi @ashaarrh ,

I put together a free report that you might find useful if you haven't already purchased. It's very relevant to your preferred areas and budget. Just drop this link into your browser:
ADVISEABLE | Property Advisors and Buyers Agents

You'll get a pop-up after about 3 seconds.

Regards Kate

 

don't see how you could go wrong with norlane/corio areas really, close to the water, same distance as Pakenham from melbourne, and yield is still pretty good, from what i see prices are starting to go up now and some for sale are quoted from high 3s to low 4s which one year ago wouldve been unheard of. not too sure about subdivision laws there but most houses are 650m2 plus so if u can get something like that with the 3m gap between the house and neighbouring fence then id guess it would be quite easy

 

Might still get into Werribee at that price. The property may need a fair bit of reno though. But the yield may not stack up anymore.

 

Please check Cranbourne West.
I bought a 3-1-1 with 626sqm land for $433k in August this year. The property is tenanted now and my intention is long-term capital gain.
You can still get similar properties around $450k range. Just keep an eye and make a quick decision when required.
I have considered Werribee, Melton and Geelong before deciding on Cranbourne West. Initially I thought I wouldn't get anything below $500k however I managed to get a decent one. FYI, I made an unconditional offer before the first open house.
To me, Metropolitan Melbourne is relatively safe investment than regional. Happy to accept otherwise!

 

Strong demand in Cranbourne west for owner off too which is always good. Lots and lots of young families and migrant families buying in becuase they can buy in at a reasonable price and Cranbourne has everything you need plus good fwy access and the train

 

And 20 minutes to gorgeous beaches too.
The truth is 311 average houses on over 500m2 are now over 500k in Cranbourne West.
300m2 houses can be purchased for 450k~500k.
With the new estate Lochaven with Woolworths shopping center coming soon, it won't be possible to buy any under 500k next year.
Around 500k at the moment would be a bargain if we look back at the end of next year.