Melbourne Property Investment

[Daz]

Hi people,

I've been looking for an investment property in Melbourne for some time now and just wanted to hear from like minded people. I have thought about buying in other states and including overseas markets (US) however I have decided to buy in my own backyard.

Now seems like a good time to buy, I don’t believe prices will drop much further and it certainly seems like a buyer’s market.

For those who have purchased an investment property in Melbourne, what was the driving factor, rental yield/capital growth?

Did you purchase an apartment or house & land? Why?

Any thoughts on where to invest and where to stay away from?

I’ll add to this later.

Daz

[Shoota_77]

I had good success with an apartment in Kensington a few years back. They''ve held their value pretty well but softened a little. Very likely it'll have more room to grow in the near future. Footscray HAS TO boom at some point. Has inflated but still has massive room to grow. Seddon has, Footscray has to!

That's my insignificant input!

[Birds]

Investment advice on an aging import forum?

Whatever does it for you...

[Daz]

Lol well considering its so dead in here why not throw in a new topic, and you will be surprised who reads these forums...

[HIRISK]

Is this your first investment property?

If it is, starting locally is a good idea as you can keep tabs on the property a lot easier, meet the agents in person, view and maintain it regularly etc.

If you do want to look further out you can look rural, whether it be in Victoria or Interstate, rural opportunities are where, if you do it right, you can make good money, both in capital growth and rental yeild.

I bought a property in Gladstone (QLD) just as the LNG (Liquid Natural Gas) started going nuts and now the place has 2 or 3 long term LNG projects, is at capacity and will be for the next 7 to 10 years. I am getting great yeild and have made some good capital growth.

A good rural market here in Vic to consider is Warnambool. Also Hastings as this is the area planned for the Port of Melbourne expansion to be finished by 2020.

Anyway, enough rambling from me, if you have any questions let me knwo

[blah_blah]

Lots of money to be had in the property market. It's all in the timing + area.

Personally I won't be going down that path, as unless you have alot of free cashflow it is alot of equity to lock away.

Share investments is something you can look into if you want to start small and you will learn a few things.

My 2cents

inb4Alexcomesintothisthread

[Daz]

Yes first IP.

Not sure about the rural market, type of areas I'm looking at are Glen Waverley, Mount Waverley Caufield, Mentone, Altona - house and land, Port Melbourne, Carlton - apartments. Docklands has dropped greatly mainly due to the over supply but I think for long term it should have good results. Iam generally looking at areas within 20kms of the cbd, close to transport, schools, shopping centers etc. Staying away from high rise apartments.

Bit lost

Waiting for Ash to reply as I know his in the same boat...

[R31Nismoid]

There are forums dedicated to property investment, read those

That's my input... I'm not looking at property currently. Playing stocks & starting up a business instead.

[Sunkist]

There are forums dedicated to property investment, read those

That's my input... I'm not looking at property currently. Playing stocks & starting up a business instead.

"Tra Mah Resarun"

thats what you should call it.

[R31Nismoid]

[paulr33]

anywhere that has growth basically

if your buying it for an investment as long as the value grows thats all that matters

ie no need to buy in a hip suburb if all you car about is growth

buy in shepparton or benalla or something

as long as the value goes up all good

[illblack]

I work in Real Estate as a Property Manager so if you need some advice just send me a PM, ill see if I can help.

Rentals have dropped in price in Melbourne in the last 2 years and also usually take a little longer to rent out due to so many houses being available, gets worse as you move close to new estates.

[R31Nismoid]

Rentals have dropped in price in Melbourne in the last 2 years and also usually take a little longer to rent out due to so many houses being available, gets worse as you move close to new estates.

That all depends on the surbub, a blanket statement like that is far from accurate.

I can tell you now inner burbs pricing for the property and corresponding rental price has not gone down from what ive seen.

Further to that at rental inspections, it's not uncommon to see 30+ people go through a place in a 15min period, same as it was 2/3/4/5 years ago. Those same people you'll also see over the course of a week going to all the other places in the immediate area generally. Demand is certainly not low and I would say unchanged for years.

[Daz]

Agreed depends on the suburb, generally 20km and less to the city = demand (generally a safe choice)

[illblack]

I should have replaced Melbourne with North Melb Suburbs.

Of course, the closer to the city you get the better it is. We have properties closer which are still going up in rental price.

[alr33x]

We leased 53 properties last month best month in 14 years of operation (we have averaged 40-45 per month this year/ last 18 months) should add 300 or so properties this year which is huge. We are the largest company in the area but ultimately we are dominating every other agent through our systems. I work in the fastest growing corridor in Australia or perhaps 2nd or 3rs these days but you get the idea lot of new houses & construction.

Rents are ok not as high as they were but its all relative.

It's really up to the OP some people buy for the capital growth, others tax breaks or as a revenue stream depends on your situation and where your at in life.

If you go for altona I have contacts there happy to put you in touch just pm me as I rarely look outside the wasteland thread.

[Cowboy1600]

Look towards regional Vic, such as Ararat or Geelong. You can buy positively geared property out there at the moment and while capital growth may not be quite are strong, it's also generally less volatile than the suburbs.

Ararat is in the midst of a massive expansion of the prison which means more people looking to rent/buy out there. My offsider is about the purchase his third ~$100k property in Ararat. His existing two are positively geared at about 110% combined after all costs at the moment. He advertises on Gumtree and doesn't use a real estate agent.

As for suburban/city, I would recommend talking to a professional. I can put you in touch with a property planner/mortgage broker if you are interested. Just let me know where you are and I'll find one in your area.

Otherwise, if you 're going to go it alone, Alex has the right of it. The west population is growing at stupid levels but is still affordable. I'd look for a couple of townhouses or something like that in Altona, Hoppers or Werribee (or whatever the big new estate between Hoppers and Altona is called).

FYI, I work for a mortgage aggregator.

[blk15]

capital growth + postive cash flow

[R31Nismoid]

Nothing wrong with going the other way and taking some tax breaks as well.

As stated earlier it all depends on what you want to achieve. A good accountant & financial advisor are also good people to have a chat with as everyone situation is different for what you want to do

[blah_blah]

Nothing wrong with going the other way and taking some tax breaks as well.

Negative growth and cash flow ftw!

Jakes. I know what your getting at