VIC Why is nobody talking about Melbourne?

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

Join Australia's most dynamic and respected property investment community
  1. 380

    380 Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    1,353
    Location:
    Australia
    I have been advised by re agents that this market is in no way as hot as it was 12 months ago because of the changes implemented by government and foreign buyers.
     
    Perthguy likes this.
  2. MTR

    MTR Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    27,755
    Location:
    My World
    I am not the smartest tool in the shed, but its very interesting phenomena when investors should have been buying in 2013, they ignore a hot market, now that they see people are actually making money they want to jump in at peak or close to peak..... happens all the time. Just make sure you don't get caught with your pants down;)

    MTR:)
     
    L3ha7, BeefEater and Perthguy like this.
  3. Cactus

    Cactus Well-Known Member

    Joined:
    18th Jan, 2016
    Posts:
    1,445
    Location:
    Melbourne
    Figuratively speaking?
     
    MTR likes this.
  4. MTR

    MTR Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    27,755
    Location:
    My World
    LOL:)
     
    Cactus likes this.
  5. Cactus

    Cactus Well-Known Member

    Joined:
    18th Jan, 2016
    Posts:
    1,445
    Location:
    Melbourne
    I have untitled land under contract there at the moment. It's gone bananas for 1 year. Not sign of demand letting up. But I would look towards rockbank, armstrongs ck and Werribee Myself.
     
    Luca and MTR like this.
  6. sash

    sash Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    15,545
    Location:
    Sydney
    all markets I am close to or already in...hope you are right...word around the traps is developers are starting to slow releases....they can't cope with the work required to bring land to market...they are now selling up to 18 months out...sunset clauses now revised to 36 months....that says it all...
     
    L3ha7, Cactus and Perthguy like this.
  7. L3ha7

    L3ha7 Well-Known Member

    Joined:
    24th Apr, 2016
    Posts:
    858
    Location:
    Syd
    Has anyone heard or bought in Emanda estate in Tarneit by gillibrandproperty group????

    Aparently there are only few blocks left!!!
     
  8. L3ha7

    L3ha7 Well-Known Member

    Joined:
    24th Apr, 2016
    Posts:
    858
    Location:
    Syd
    Hi @Lisa Parker- Buyers Agent , so you are not in favour for Melton or any other surrounding areas?
     
  9. Spiderman

    Spiderman Well-Known Member

    Joined:
    29th Jun, 2015
    Posts:
    296
    Location:
    Vic
    Way out in the middle of nowhere. Won't get a full range of services for years.

    The area south of the Geelong railway has established services, schools, transport etc. Although the patch near Leakes and Palmers should be avoided as it has no transport.
     
    L3ha7 likes this.
  10. Spiderman

    Spiderman Well-Known Member

    Joined:
    29th Jun, 2015
    Posts:
    296
    Location:
    Vic
    Very few local jobs. Melton has more out of area commuters than almost anywhere else.
     
    MikeyBallarat and L3ha7 like this.
  11. sash

    sash Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    15,545
    Location:
    Sydney
    ..yes but a lot of immigrants view this positively and are piling in to build affordable houses...
     
    Cactus and L3ha7 like this.
  12. L3ha7

    L3ha7 Well-Known Member

    Joined:
    24th Apr, 2016
    Posts:
    858
    Location:
    Syd
    Hi @Spiderman thanks for your input. I kinda agre with @sash , but i don't live in Vic so I csn only go by whst the government projects are.

    So thats why thinking to buy a land now in Melton or Tarneit area and keep it for few years which may give the benefit???

    by the way, Any suburbs in south of gelong ???
     
  13. TMNT

    TMNT Well-Known Member

    Joined:
    23rd Jul, 2015
    Posts:
    5,572
    Location:
    Melbourne
    whatever the defintiin of investor is , any good investor wouldnt be buying at the peak or following the herd, so buying in 2013 would be smart,

    buying now would be just dumb IF!!!! 2017 the market was going to plateau or tank

    however if the market continued to grow for another 1year+ then buying now would still be smart

    frankly, Im scared to buy now for development because by the time permits and building start, its almost minimum 9 months
     
  14. Cactus

    Cactus Well-Known Member

    Joined:
    18th Jan, 2016
    Posts:
    1,445
    Location:
    Melbourne
    T
    The next PSP to be undertaken in the Melton area is for business zoning area to increase employment prospects in the area. Of course will take 5-10 years to have any effect. But when coming off such a low base Melton has the potential to triple in the timeframe other areas in Vic double.

    I'm already seeing prices of land increase by 10% over last 6 months.
     
    L3ha7 likes this.
  15. melbournian

    melbournian Well-Known Member

    Joined:
    2nd Sep, 2015
    Posts:
    3,038
    Location:
    melbourne
  16. melbournian

    melbournian Well-Known Member

    Joined:
    2nd Sep, 2015
    Posts:
    3,038
    Location:
    melbourne
    Some (suburbs) are at its peak. The smart move was get into the glen Waverley or Ringwood in 2013 and reap the benefits. But there are many other suburbs that will move (who knows the st albans will jump 20-30%) or like sunshine or reservoir which was not that expensive 6 months ago and land going for more than a million.

    I see people not even getting permit or even going down that path. they just throw a few photo montages of what is possible and sell.
     
    Cactus, TMNT and MTR like this.
  17. MTR

    MTR Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    27,755
    Location:
    My World
    what happens next, already happening is building prices start to soar
     
  18. MTR

    MTR Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    27,755
    Location:
    My World
    .....but I wonder if Reservoir end values make sense anymore?? I have done the numbers of recent sales and I would be making zip.
    However when you look at Croydon land is cheaper and end values ie townhouses fetch for much higher price.... homework, homework and then more homework required. Can not put everything in the same box.
     
    MikeyBallarat likes this.
  19. melbournian

    melbournian Well-Known Member

    Joined:
    2nd Sep, 2015
    Posts:
    3,038
    Location:
    melbourne
    I am friends with a Turkish builder and he was bidding on the broadway, resevoir. he put a bid at 1 million and said anything more there's no margins.

    That being said (if it is rezoned, it is different market altogether) say 600sqm in general residential zone you could put 3 townhouses (skinny small ones) due to height restriction. In a residential growth zone, there are ppl putting 5 on the same size (adding a floor to accommodate this as it is allowed 4 storeys). If you saw that glen Waverley example where it went for 6 million (once it is rezoned to growth it is a different market as the developer who bought has the option to build apartments as opposed to townhouses.
     
  20. MTR

    MTR Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    27,755
    Location:
    My World
    Builders margins are much better than a developers margin, builder may only be paying $1100 per sqm,
    as opposed to a developer $1300-1400 sqm massive difference.

    Let me get back to markets when Perth market tanked nothing made sense, the development sites everywhere had no money in it for developers or builders so they stop building.

    I guess my point is we are coming close to the pointy stick where this is happening in Melb, not all areas but it is happening. We may still see a strong Melb market but you still need to buy the land at the right time and if you need to sell you need factor in around 18 months for development.... talking 3-4 unit sites.