Which Suburb(s) in VIC to Invest

Lkld1 on 13/11/2017 - 09:38
Last edited 13/11/2017 - 12:20 by 1 other user

Hey Ozbargainers,

Trust everyone had a good weekend and happy Monday! :)

I and my partner are thinking of buying an investment property. We are thinking of buying a super old house with decent land size and in a few years time, once we save enough money, we can pull the old house down and build 2 townhouses.

Which suburb(s) would you recommend? Any tips from anyone who has done this? Our budget is very modest at $600K.

Thanks guys.

Edit: sorry, forgot to mention, we are in Melbourne and looking for a property in VIC.

Financial

Comments

  • RockyRaccoon on 13/11/2017 - 09:50
    +5

    Welcome to Ozbargain

    However being serious.

    What planet are you from?

    How much of this so called $600K are you prepared to lose?

  • TheBilly on 13/11/2017 - 09:59
    +3

    My first recommendation is don't do it. If you can't figure out why I am saying this, then really do not do it.

    My second recommendation is, you can't afford anywhere in Sydney - so focus on Brisbane and Melbourne. Similarly find any place that you can afford to buy in, ask the local council what the requirements are for that area and then narrow your search to the houses in that area that fulfil those requirements.

    • godofpizza on 13/11/2017 - 10:02
      +1

      OP, profile is melbourne. But really need to state which state their looking at.

      • kld1 on 13/11/2017 - 12:22

        Thanks TheBilly and godofpizza, I have updated the post. We are looking for a property in Victoria.

  • coxjon on 13/11/2017 - 09:59
    +1

    A suburb or even state you’re interested in might narrow things down, especially with the ATO removing claims for travel expenses.

    • railspider on 13/11/2017 - 12:01

      Has this change been legislated yet? Wanted to make the Christmas trip home (to the investment property) tax deductible

      • coxjon on 13/11/2017 - 12:08

        I'm not 100% certain as my wonderful tax accountant takes care of this (our property is in our state, but I have relatives in NSW with properties here)

  • godofpizza on 13/11/2017 - 10:00
    +2

    good luck on your search

  • SharedSugar on 13/11/2017 - 10:03
    +1

    In Adelaide there are short courses you can take to learn about property development and/or you can work with a property development company.

  • Ughhh on 13/11/2017 - 10:25
    +1

    Leech

  • CLoSeR on 13/11/2017 - 10:42
    +3

    DYOR.

  • [Deactivated] on 13/11/2017 - 10:54
    +3

    A house with development potential for $600k. Lol. they all sold 10 years ago when the housing bubble suppose to pop.

    • original15 on 13/11/2017 - 17:35
      +1

      A derelict house that's on a regular sized block but cannot have townhouses or apartments put on it sold on my street for 900k. 45min train ride east of melb, 50min drive down eastern depending on traffic
      OP better be looking rural

  • GetOffMyUnicorn on 13/11/2017 - 11:12
    +1

    I recommend central Sydney. The prices are very competitive;)

  • holdenmg on 13/11/2017 - 11:31

    super old house?

    Could be heritage or National Trust.

    maybe settle for old…

  • pyramid on 13/11/2017 - 11:32
    +2

    Weribee

  • Baysew on 13/11/2017 - 11:54
    +2

    My tip would to buy in the suburb you know most about.

    You should have the inside knowledge of public transport, school zones, shopping, employment. (Also Bikies HQ's and drug dealers)
    It maybe a suburb you grew up in or worked in. You just need to have a 'locals' knowledge of what is going on. This will also help guide you in pricing and redevelopment outcomes.

  • [Deactivated] on 13/11/2017 - 11:55
    +1

    Tottenham, Sunshine, Deer Park and Frankston

    • cassidy02 on 13/11/2017 - 13:05
      +1

      shudder

      • stirlo on 13/11/2017 - 13:54
        +6

        That's the point, they have big blocks, close to city/transport, affordable. Once the drug dealers move out they're ripe to gentrify and increase in value

    • godofpizza on 13/11/2017 - 14:34
      +3

      i honestly don't think you can buy a house with a decent land size for under 600K in sunshine anymore.

  • Andym on 13/11/2017 - 12:26
    +2

    There are property investment groups and consultants that spend a lot of time researching the areas that are currently under priced but will have large growth within the next few years due to more demand. Most of these areas have good local facilities, schools, good freeways, public transport, park lands, shopping etc.

    I'd do some research and find a good group or consultant.

    Saying that Australia is way over due for a property shake up. We have been riding on China's economic coat tails for decades now with record levels of growth, but next time they sneeze we will get influenza. So buying low to start with should not have that bad effect on you. The big cities where properties are currently way too overvalued is where the hurt will be. It is just a question of when it will happen.

  • barbarella on 13/11/2017 - 13:25
    +1

    How about looking around Drouin and/or Warragul (Gippsland) area? The older houses there are on huge blocks. Both of those towns are on the train line and popular places for commuters to live.

  • usmanyousaf on 13/11/2017 - 14:47
    +1

    I live in Northern suburbs of Melbourne.
    It is definitely very good way of investing money to buy an old house. Rent it cheap. Get the approval for townhouses, sell it as it is to builder or build it yourself.
    I belive Glenroy is really good spot for investment and is very hot with townhouses.
    Look at Glenroy but not sure if u can buy a property for 600k but i highly doubt.
    Next is broadmeadows but it is still a bit rough area…
    Having said that…it is also a question needs an answer if it is right time to invest or hold the cash?

    • dasher86 on 13/11/2017 - 19:59
      +1

      Nope. Glenroy boom is almost over.

      • usmanyousaf on 13/11/2017 - 21:30
        +1

        I think…it is not over… It is actually getting pricey…

  • chumlee on 13/11/2017 - 17:38
    +1

    Look around Sunbury snd Diggers Rest

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