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VIC Where to Invest Sub 400k in Melbourne

Discussion in 'Where to Buy' started by BigL, 1st Sep, 2016.

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  1. BigL

    BigL Member

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    26th Jun, 2015
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    Victoria
    I will finish renos on my first IP soon and am looking to buy my second one in the next 3ish months. Im just after some advice on where would be the best place to invest for under $400k. Possibly looking at run down units in nicer suburbs. After somewhere I can renovate straight away and can manufacture some CG.


    Goal: I will be returning to Uni soon so wanting cashflow neutral or positive as income will be limited. And decent CG to fund next purchase in 2 years.


    Any advice is appreciated as currently got analysis paralysis :s Thanks
     
  2. Lil Skater

    Lil Skater Well-Known Member Business Member

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    What do you class as a nicer suburb? Where would you ideally like to buy?

    I'd say your best bet is either inner west (Footscray-Sunshine) or down Dandenong-Frankston way. I think the main issue will be that those areas have a lot of FHB and new development going on, which may have a little bit of impact on CG. Also be mindful of over capatilising on renovations, which can be quite easy to do on little units.

    You could get away with some one bedroom units in different suburbs, but given the choice I would choose a two bedroom over a one.
     
  3. BigL

    BigL Member

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    I've been looking all over. Was originally looking at houses in Jacana / Broadmeadows or sunshine west area and holding long term but might be a bit late to invest. Bit worried there might be little growth over next couple of years and may be better options for my money.

    And have looked at sunshine area for units. I'd prefer it to be close to CBD within 20kms. So I can possibly move into it in 1.5 years and do some renos if it's a house and then claim PPOR tax exemptions.


    For unit Reno was looking at two bedders and Id do most of the work my self plus have some cheap tradie mates so unlikely to overcapitalise.
     
  4. Otie

    Otie Well-Known Member

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    You can just get a house with your budget in those suburbs. I would go a house with a bit of yard over a unit as then you always have options and growth would be better. You can only do so much with a unit.
     
  5. BigL

    BigL Member

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    I'd prefer a house in somewhere like jacana but I'm just concerned with Melbourne being near the peak tho. Can't decide if I should invest or wait a couple of years and put my money into shares or some other investment. I don't think there will be a crash at worse maybe a slight drop. But more concerned about stagnant growth for a few years. As I said analysis paralysis ...
     
  6. MTR

    MTR Well-Known Member Premium Member

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    Perth, Melbourne, USA

    Have a search on PC, there is a list of affordable/cheapest suburbs in Melb

    MTR:)
     
  7. The Y-man

    The Y-man Moderator Staff Member

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    I went for units in Epping and Lalor - not sure if it was a great decision. Been a few years, and very little price move / turnover of older units.

    Cash flow's ok tho - we bought in 2013 for $280k ea, and they get over $300pw in rent

    The Y-man
     
  8. Otie

    Otie Well-Known Member

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    I think if spending less than 400 then a crash can't really hit those properties too hard- I think it would hurt those spending 800+
    I think it would be unlikely for anything under 400 to be affected if a house in a crash