Wow Melbourne likely to out perform Sydney this Cycle

Hi All,

Wow it looks like Melbourne is now affected by the craziness of Sydney....

For example...I bought a block in Mickleham's Trilllium 2 years ago for 125k...similar blocks are in highlands around corner are selling for 242k!

Bought a block in Wyndham Vale....288sqm.....I paid 144k...these blocks are now commanding 223k as they are within walking distance of the station. This block was bought in Jan 2017.

Block in Officer...bought for 144k in 2015..for 290sqm.now these blocks are selling in excess of 235k! I am currently building a house there as we speak....450k as of now is what the house will be worth on a 320k spend.

This pales in my Werribee, Hoppers Crossing, Melton Houses ...profits on these are heading towards 400k...crazy!!!

These areas are quite good areas and are very popular.

What I really like is rents are also going up.....I expect to be at 10% return on the older houses and 7-8% plus on the newer houses.

Who would have thought....

Geelong is the next cab off the rank...if Brisbane and Adelaide kick...then its all apples.

Wollongong and Central Coast properties are also going nuts....

Unbelievable...but will take it!

Please share some of your successes...

Cheers
Sash

 

Illawarra bought 2 yrs ago for $420. House next door, very similar just went for $610.

 

Nelson, NZ bought 18 mnths ago $390 now valued $500.

 

Hoppers bought 1 3mnths ago $450 not sure now but I'll ask agent and let you know

 

Hawkes Bay bought $210 in 2016 now $280...

 

Okay only of these is Melbourne but just goes to show its a big world out there. No need to sweat if you missed Sydney or Melbourne.

 

1. Armstrong Creek, land and house bought for 280k.
   Currently worth around 410k.
   Will be rented at 375-385 per week.
2. West (50Ks from CBD), land and house bought for 380k
   Currently around 460k
   Will be rented at 450 per week.
3. Wollert, land for 190k
   Currently around 240k.
   Should be rented for 440 per week, I believe and house value will be up at least 80k.
4. Wyndham Vale, land bought for 165k.
   Currently worth 225k.
   House might be rented at 380-390 and total value of the house will be up by 80k again.

Don't have money to spend any more, even to settle the last one for now which is due after a year's time. But will try to build all and then extract equity to buy in SYDNEY!!!!!!!

 

Bought in Sunshine West late 2016 for 480, now valued 600

 

For Melbourne it does make sense for now, as they have the highest population growth and very little reported changes on the jobs front. Not to sure about elsewhere.

 

People will only live and work in Melbourne in the future? Growth only occurs in Australian cities with current highest forecast population growth? So no one is moving anywhere else??

 

Purchased Endeavour Hills 470k 12 months ago, 50k reno now 670k.

 

Nice one! I bought similar 2 yrs ago for 340k. House across the road sold recently for 550k

 

I bought one in Point cook late 2011 for $390k , though of selling in 2014 as the price didn't go anywhere and one selling agent convinced me to sell ASAP due to more supply from upper PC but after doing some numbers crunching and looked at macro conditions , I have decided to hang on to it

The value finally moved from 2015 and now it's worth $600k and not to mentioned the yield just get better each year

Erorxxx

 

I did say "for now". Who knows what will happen in the future. Sydney & Melbourne are pretty big targets but.

A big part of our population growth is overseas migration, and without any policy changes they in the main will probably continue to end up in Sydney & Melbourne.

 

It depends on your strategy. If you're just buying one or two ips to hold long term then it may make sense just to focus on Sydney or Melbourne. If you're buying multiple ips and using multiple strategies then there are other factors and locations to consider.

 

4 in Melbourne in mid to late 2016 - all within the 500kish - now all in 800-900Kish. (around 60-70%) in one year.

 

No surprised....well done...how many have you got in Melbourne? You are killing it!..I feel that Melbourne/Geelong returns could trump the Sydney returns on a dollar for dollar basis.

 

not as many as you . i did spend a lot of time researching (sat/suns - auctions/inspections) visting shopping centres, schools, parks, roads etc and studying res dev codes. and most of my figures are pre-permit, so once they do come out should have some uptake. i'll probably buy one more to keep and that's abt it for the time being.

Geelong will be the biggest underdog - they can go 1000s of pages for other locations for feel good factors - i initially didn't think geelong will peak but as they were still places (like Heidelberg west, jacana) that could be for bought X dollar for the starting individuals, but even those have gone the place below was around the 400-500kish mark only 2 years ago was regarded as among the worst areas in Melbourne -esp this one right behind those commission flats but sold 900K over the weekend. now that is real capital growth as stuff were selling 800kish only months ago.

Geelong is the only logical options if you have X amount of money to spend for many individuals. Time wise from there to CBD on train is not much diff to frankston without the stopping. i took the train there myself.

 

some crazy figures!!! must be so many more millionaires around compared to a few years ago

 

Been looking at Werribee for my budget of $450k and I think I've actually been priced out. May need to look back at Geelong again.

I know Corio/Norlane has properties in the low 3's but I would rather purchase something at a slightly higher starting base of say 400ish to maximise growth. Time to revisit the Geelong thread