VIC Why is nobody talking about Melbourne?

Isn't that the suburb that's close to Tasmania?

 

Please, let's not get @datto involved in this...

 

Anyone had any success stories with land and house packages?? curious, when markets are rising always a good time to build??

MTR

 

@sash is building one in Melb soon I think. He's doing well with it the last I heard.

 

Yes, I do recall him mentioning this, be good to find out where if he cares to share.

MTR

 

You can get 4bdrm house and land packages in Cranbourne/Clyde north, Officer and Pakenham for 330k that will draw 380p/w rent. I suppose those provide a good return. Personally I think the blocks are too small and they're rather inflated in price compared to 650sqm+ blocks closer in to Narre, Berwick, Cranbourne. Can put 3-4 units on a 320k 950sqm block in Cranbourne central/West, yield and capital gains will be far superior.

Cranbourne North you have the older area near the station, and the new area near Casey Fields/MAC that's planned to provide 12 000 jobs, perhaps a station some time within 15 years or more. Officer would be my pick of the bunch if you can get a 4bdrm for sub 330k and draw 380p/w. Has big infrastructure plans circa 2030. Cranbourne North near Casey Fields should be a solid investment given the medium-long term infrastructure plan. Cranbourne North unlike the other area's around it is boxed in by suburbs, the endless paddocks soon become Clyde North, perhaps less land supply issues.

We've lived in Berwick and watched them pop up estates from Clyde rd to Tooradin for the last 10yrs. Would never buy there! Not as a primary investment anyway, could be a good "set and forget" to add to a portfolio. And the traffic is terrible!

 

EJ/MTR.....the land I bought near Craigieburn is now $173k....I paid $125k for 280sqm odd.

The build cost is about $175k....so a 17sqm 3x2x2 house for 300k.....try buying a similar one for less than $350k now!

 

If only melbourne had better yields there would be a number of suburbs that would be super attractive right now (in addition to those few that have ok yields)

After buying cash flow -ve in sunshine, need the next one to be neutral at least.

 

My gut feel is that Melbournes demand in areas that are moving up in price is less due to investors and more due to PPOR buyers currently.
Probably why there is less talk about Melbourne on this forum, as its not so much investor driven.....gut feel.
I deal with a lot of people daily who buy an old dump in the eastern and bayside suburbs to build a shiny new house on....not to make $$$... It's for thier PPOR.
I predict that over the next 10 years this will be a much larger piece of the construction pie than it has been over the last 10, as Melbourne rebuilds itself in high land val areas. The general population start to realise its not that hard to do when they see new homes pop up in the streets they live in all the time, being built by volume builders.

 

I agree with your points, but will add FHB are in the box seat and buying lower end, close proximity to city

 

I have actually noticed a huge amount of properties being listed in the last few weeks. I think everyone is seeing the good prices their neighbours are getting and deciding to sell

 

Isn't there always much more stock available in Spring?

 

Plenty entry level H&L package deals are available around Melbourne outskirts:

http://www.realestate.com.au/buy/property-land-in-mickleham,+vic+3064/list-1?source=location-search

for example, plenty land at above link for under $150K (if you drive hard bargain, you may be able to secure it $10-$20k cheaper)

NOTE: This is not our recommendation of area or property type/selection. such estates could be another future Melton. please carry out your own Due Diligence and check if it aligns with your strategy or not!

 

WI
I love Mornington Peninsula, but for me I would want a holiday in this area. Never looked at it any other way, so is there real value in this area?? Perhaps I can have both, maybe one day

 

Because the market is rising its just going to get harder to source cf+ properties, especially if you are trying to source property on larger land component, which I think is what you are trying to do?

Alternatively, you buy a new product ie townhouse and with depreciation there is your cash flow.

MTR

 

Maybe one day, let's hope so. From what I've heard, the peninsula really is lovely. I was even surprised at the pleasant atmosphere and sea breeze when I stayed in Frankston briefly last year (2 night to inspect property lol). Two different areas though. One, an area to retrwat - the other an affordable and promising area to buy a first or last home. Frankston is still an area with a long way to go. I think it is happening though. Certainly, anyone in health or education would find plenty of work there, I would think. Or real estate.

 

ND you are spot on...those pesky PPOR buyers are everywhere. They are snapping up the standard 265-350 sqm affordable lots in Melbourne 25-30klms west, 25-30 klms North, and 40-60 klms southeast for 130-200k like ice cream. Most will not title for at least 9 months. Such is the demand.

If you buy well..it is possible to get something for a price point of 305k (land 130k house 175k) with a return of 380pw. Deals like these are getting rarer. Usually the house will be 17 sqm with 3 brms, 2 bths, and 2 garages and 1 living area. I find that Melbourne people don't like T/H and Villas as much. The smaller well built homes are now really popular across the entire spectrum of age groups.

Geelong is also interesting....I found the houses are mostly older..so there are plenty of renters for the new suburbs as these are only 10-15 min from the Geelong CBD. The expect Geelong's population to increase from 270k to 500k by 2050. That is about a 2% increase in population given that Sydney is growing at 1.4% and Melbourne at 1.7% odd.

Agree FHB are in the box seat....lot of areas within 30-50 klms of Melbourne which are having lots of infrastructure being put in.

 

I would love to buy a holiday house/unit overlooking the water over the cliff side at Mt Martha. My favourite little rock fishing spot is there, not many fish these days (mostly pinkies) but very picturesque and just a fantastic spot to sit back and relax (the walk back up is a PITA though). Wish I'd bought there a few years ago...pretty pricey now.

Mornington is also a nice place. The main strip is fantastic (and has the best pizza shop in Vic - poor old Crust pizza right opposite is always empty when I'm there).

 

Might have some of the best stamp duty laws, but probably the most expensive stamp duty in the country.

 

it does, but the exemption from duty for spousal transfers more than makes up for it!