VIC Why is nobody talking about Melbourne?

True, but without it, I don't like chances..I suspect, looking at the list, that location was number 1 driver for their growth. Even from an expensive base eg something like Canterbury 10 years back...

 

Check out this apartment that sold for 150k in brunswick west on the weekend. Maybe not the city's best cap growth prospects but 11% yield!

http://m.domain.com.au/listing/2010732073

 

Thought I'd share; I bought a renovated IP in Meadow Heights about 18km north of Melbourne cbd, for under 335k on 630sqm land. Rented for 340/week within 2 weeks. Bought largely due to the land component and proximity to city with a view to develop in a few years.

 

Good buy man, even if someone else has already manufactured equity (e.g. profit) for yourself. Have you done a bit of research on development opportunities?

 

I'm a bit of a novice in investing to be very honest. Still learning.. But in a few years hope to have enough information to take the leap.

I only bought the IP this year and saw plenty such opportunities in meadow heights. Also looked at Dallas and coolaroo, but didn't like the area (coolaroo felt very industrial and Dallas was in flight paths)

I bought my own PPOR in Glenroy and got my introduction to the opportunities in Northern areas

 

Here's our anecdote re Melb;

we bought a property very late last year for $660k.

Went to an auction last sat in the next street; similar position, but slightly smaller block. (ours is 785sq/m, the auction was 675sq/m).

The auction house sold at auction for $737,500k.

Based on this; a conservative increase in 12 months on our property of approx 11%.

 

Nice, don't you just love boom markets, its easy money, you don't even need to be a smart savvy investor you just need to have the cash ready and pull the trigger.

I purchased my Croydon, Vic property in Melbourne for $520K 18 months ago now and sold it with DA for $752000 I think that's around 43% gross profit, I also had long settlement... I decided not to develop and flip to a builder.

MTR

 

Glenroy has had a brilliant run.

I really like this corridor, the locals don't like Broady etc... but these areas are absolute gold, where can you buy development sites this close to CBD in Melb???

 

Actually Melbourne started booming same time as Sydney in 2013

Many investors followed the herd and jumped straight into the Brissy market last year seeing this as value compared to Sydney and totally ignoring the Melb booming market which was also significantly cheaper than Sydney, historically Brissy booms after Sydney but of course we know this did not happen.

Moving forward I think the smart money has already jumped into Melb and have made their gains.

What will 2017 bring? not sure, but unless you are buying in Melb to add value or areas that have not yet taken off I would not rely totally on growth because from what I am reading markets may soften in 2017, this with interest rates increases means it may not necessarily be smooth sailing. Just my opinion, but what do I know...

 

Yep.

Even nicer if it wasn't even planned for to ride an upcoming boom or bought because of a current boom.

 

20 km from Melbourne city...cheap land or eatablished properties !!!

I am keen to know -Please advise few suburbs.

Ps:I am not from Vic or Melb.

Thanks

 

smart move than to tie your money up. Saw this one in reservoir bought 610K and sold 820K (4 townhouse permit around 1 year.

 

I agree! I almost bought in broadly but missed out on a deal and went over to meadow heights (I figured it had no percieved stigma and was primarily owner occupiers so had a good feel to it) I can be taken as a bit biased but I love the amenities in the area. Everything (Station, Glenroy and Pascoe vale market, Coles etc.) is walking distance and a 30 min train ride to city (sitting, not standing!)
Ive also found it to be really safe and am blessed with amazing neighbours (found two other woman like me but with the bonus that they have lived in Glenroy for years and very happy to share information.)
I bought in early 2015, it's a new townhouse on just 250 sqm but has had a 60k appreciation.

 

Look towards north and west of Melb cbd. You will find cheap suburbs within 20km.
Some have a stigma attached to them (Broadmeadows) but have the infrastructure (in my opinion) to outlast that stigma. Things I'd watch out for on top of the usual are probably flight paths.

 

I am sinking cash into USA market, one of my strategies has always been to identify rising/strong markets and generate profits this way, you don't need to be a genius when the trend is doing all the work for you.

MTR

 

@sash is from Syd but doing stuff in Melb, start reading some of his posts my suit your strategy

 

I wonder if strata fees will kill the deal and perhaps under 50 sqm, harder to finance??? Not sure, just throwing out there

MTR

 

We purchased development sites for our clients in Melbourne during 2013-2015.

Some of our clients are actually on selling with DA in place, they have made their money and the clients that are building are basically holding, or rationalising so they create cash flow income.

What I am seeing in Melbourne with regards to development sites - the land has soared in price the end values are no longer stacking up for builders/developers.

I assume those buying development sites today/now are either land banking or have very little knowledge when it comes to the real numbers. Either way, its a long term hold proposition.

@MTR recently sold her site in Croydon, I was involved with the DA process, this site sold within one week to a builder, the difference here was the DA did stack up, as end values for townhouses in this area have also increased significantly, not the case in all areas/suburbs in Melbourne.

Melbourne may slow down in 2017, in particular development sites, once they make no sense the builders/developers will stop buying and then stock will increase which will push prices down.

Lower markets may hold out as long as FHB are in the market to buy and do not get spooked by interest rate increases.

 

I wish i had the courage.. and the knowledge!!

 

your avatar.....Open your hands if you want to be held