VIC Why is nobody talking about Melbourne?

Discussion in 'Where to Buy' started by ej89, 12th Oct, 2015.

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  1. ej89

    ej89 Well-Known Member

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    Finding it interesting that everybody is talking about Brissy and Adelaide, but there are so many suburbs in the northern and western parts of Melbourne that are still priced either below their previous peak or at a similar price. What's everyone's view on Melbourne? I know the yields are a bit lower but north (19-20km) you can still pick up houses under 300k and rented at around the 300-350/week mark. Out west 12-20km from CBD you can still get houses around the 300k mark that are rented about the same. What's everyones views on Melb? Are we worried about job losses? Are we worried about oversupply of units and unsure how that'll affect the housing market or the uncertainty of how so many H&L packages may affect the market. I would've thought spending 300k, 20km from Melb CBD would probably take peoples money a little further than Logan which is 25km from Bris CBD for similar price in similar low socioeconomic areas.

    What's everyones thoughts?

    p.s i'm currently out of funds so not buying anything atm, but seems like Melbourne is where Sydney was 1-1.5 years ago.
     
    Last edited: 12th Oct, 2015
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  2. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    I think you raise some very good points @ej89, there are some good opportunities in Melbourne.

    One of the things that's turning people off Melbourne at the moment (and in general) is the price point and the rental yields. These are fair points but there are still opportunities and there are plenty of locations with reasonable yields, good demand and are still cheap enough to be affordable.

    I don't know that I'd go 20km out West. The yields are good, but much of the outer West will continue to develop until they hit Geelong or the Ballarat State Forests. These are also quite volatile locations, they have growth spurts, but they're also the first to drop in value when there's a downturn.

    In the outer East there's numerous locations that are next door to the multi million dollar locations. The prices are highish, but there's fundamentals indicating that they can enjoy more growth (if you can put up with the average yields).

    Outer Bayside and South East has quite a few spots with good returns and reasonable price points.

    There are opportunities all over the place with different price points, they're just not obvious and the noise of overheating in the blue chip locations is making these opportunities harder to see.
     
  3. Mel_C

    Mel_C Well-Known Member

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    Yeah I am wondering the same thing...suburbs like Melton ? I have only just started researching VIC but am also wondering why everyone is so quiet on potential of Melb and its surround suburbs up to 20km from city. Suburbs like Melton seem a lot cheaper than respective Brisbane suburbs that everyone is talking up...
     
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  4. ej89

    ej89 Well-Known Member

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    Yeah I thought maybe the yield would be an issue for investors. I did a 15km radius search for suburbs in relation to Melbourne CBD and found a fair few homes under 350k both North and West. They are low socioeconomic but you'd think being so close they prices will lift due to affordability.

    I have noticed some suburbs with potential in the east as well. Boronia, Croydon South and The Basin are both quite cheap/affordable and about 35-40 mins from CBD, which is normal in the east.

    Do you consider Albanvale as too far west?

    From all the experienced investors I speak to and Melbourne locals, Melton is in the middle of nowhere and they would never live there, although it is cheap and yields are good.. I think @sash 's worst IP is in Melton @Mel_C and he'd prob recommend staying away as well
     
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  5. ej89

    ej89 Well-Known Member

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    I have attached a 15km radius map of Melbourne.
     

    Attached Files:

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  6. The Y-man

    The Y-man Moderator Staff Member

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    Everyone's not talking about Melb because they're too busy out there buying :D

    The Y-man
     
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  7. Mel_C

    Mel_C Well-Known Member

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    Thanks @ej89 . I know nothing about Melbourne suburbs at the moment ....quite familiar with Brisbane as I live on GC so am swaying to my next IP being there but just not 100% convinced on the growth drivers for Brisbane whereas as you say I see Melb being where Sydney was at a few years ago.
     
  8. Steven Ryan

    Steven Ryan Well-Known Member

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    @Peter_Tersteeg makes good points.

    I'd like to add:

    - Most eyes have been on Sydney which has overshadowed Melbourne. If Sydney was dead from 2012-2015, there would have been a lot more talk about Melb and probably a lot more investor activity. It's done well in the background.
    - Given that Melb has moved a bit, lots of investors are seeking to get on the ground floor (Adelaide) or first floor (Brisbane) so again, not so many eyes on Melbourne.
     
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  9. Bayview

    Bayview Well-Known Member

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    I thought it was because there are bugger-all folks on this site from Vic.
     
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  10. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    More than you know, they just don't get on their soap box as much as most people.
     
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  11. Bayview

    Bayview Well-Known Member

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    Maybe they've got better things to do unlike me!!:p

    Hang on; when am I on the soapbox? I sold most of my joints - total failure. o_O
     
  12. ej89

    ej89 Well-Known Member

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    I think Melbourne moving is for Melbourne as a whole but there are suburbs which have only just started moving now and many still close to their previous peak price. I'm finding it so hard to read these suburbs though. I'm still yet to see regions similar to Mt Druitt move which I thought they would've already due to affordability. I'm not too worried about land developers in outer suburbs tbh as they release like 30 lots every 3-4 months
     
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  13. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    I meant everyone else.
     
  14. 380

    380 Well-Known Member

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    @ej89

    ssshhh.... please keep it quite.. :):):):):)

    Let forum members jump on bandwagon of Brissy!

    We have been buying in Melbourne since beginning of the year for our clients... our own project is out of ground and seeing some strong market activity from Investors and FHB.

    We chose Melbourne based on actual fact and Data from various govt agency. we even posted some info on forum not long ago.

    Melbourne seems attractive for following reasons:

    Barista Economy
    Not affected by mining
    Pro Development councils
    Stamp duty concession calculation method
    State govt is spending significant $ on infrastructure.
    International and Domestic migration.
    Rage of universities appealing to international student market
    Cost of living is cheaper then Sydney
    Lower AUD is attracting Tourism $$$$, next and following quarter report will indicate this!

    Just have to find right property at right price.:)!
     
    Last edited: 12th Oct, 2015
  15. ej89

    ej89 Well-Known Member

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    haha I better delete this thread quickly. When's your next meetup? Would love to learn from you about the Melb market. I can't buy atm but have about 4 mates looking to purchase there. Do you only go for development sites?
     
  16. juzzy

    juzzy Well-Known Member

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    Melton is cheap for a reason. It's a fair hike from the CBD and is surrounded by empty land.

    I live in Taylors Hill and there is SOOOOOOOO much land between here and Melton it's ridiculous.

    Not to mention, you can go a little further out to Bacchus Marsh and it is a MUCH nicer suburb with a really good Grammar school. People who can't afford to move closer to the city move there just to get their kids in to the school.

    Great yields, but I can't see CG in Melton for a while.

    But I'm new to this whole investing thing, so I could be way off the mark. :p
     
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  17. See Change

    See Change Well-Known Member

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    Ok , so where could I buy and well located property in Melbourne grossing > 6 %

    Cliff
     
  18. ej89

    ej89 Well-Known Member

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    Dallas, St Albans, Deer Park, Broadmeadows just a few..
     
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  19. WattleIdo

    WattleIdo midas touch

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    I'm a bit surprised too. Maybe it's because some areas have only just started to move beyond previous peaks as already suggested.
    The yields aren't really amazing. I would think there are probably plenty of fhbs. That's a good thing as far as I'm concerned.
     
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  20. JamesP

    JamesP Well-Known Member

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