Melbourne Property To Buy (Suburb Recommendation): 500K budget

yjun355 on 19/02/2018 - 13:31

I have following investment criteria:

500K
House/Townhouse
Preference towards smaller place in a nicer suburb and better location.
Investment

Domain has auction results: https://www.domain.com.au/auction-results/melbourne/

Can you suggest me some suburbs which i should look at to fit above criteria? I am from sydney and have no clue on where to start. Another thread suggested getting a buyers agent is an overkill for that price.
My friend suggested Point Cook couple of years back. It seems the prices are over 600K in that area now.

Home & Garden

Comments

  • dasher86 on 19/02/2018 - 16:29
    +1

    Glenroy but $500k might be pushing it already.

    • serpserpserp on 21/02/2018 - 15:18

      2 bedder at the back end of Glenroy near the ring road could probs be a goer at that price.

      • vinni9284 on 21/02/2018 - 16:40

        That's more Jacana. However agree.

    • PAOK11 on 22/02/2018 - 09:44

      City link robs the North worst roads

      • dasher86 on 22/02/2018 - 10:39
        +1

        It does but that part of town had excellent public transport links - if you can even call our public transport excellent.

        • PAOK11 on 22/02/2018 - 10:52

          I have lived in Glenroy. I had no family there & don't know anyone. Constantly travelling to City for work/family/friends, if your just moving there because its cheap you will be disappointed due to the roads unless your happy to pay citylink

  • bohn on 19/02/2018 - 17:05

    Somewhere between Pakenham and Warragul.

  • yjun355 on 19/02/2018 - 18:43

    how good is Point Cook considered as a suburb?

    • Cyphar on 19/02/2018 - 19:02

      Very. But prices are skyrocketing.

      • [Deactivated] on 19/02/2018 - 20:59
        -2

        Very shit. It's a terrible suburb. And it's still dirt cheap.

        • cloudy on 20/02/2018 - 09:14

          Funny u said that.

          News just in.

          https://www.triplem.com.au/news/melbourne/breaking-shots-fir…

        • magic8ballgag on 20/02/2018 - 09:25
          -1

          @cloudy:

          This happens in a lot of suburbs in Melbourne.

        • Cyphar on 20/02/2018 - 14:39

          @cloudy: That shit happens in Toorak too.

        • [Deactivated] on 20/02/2018 - 17:08
          -4

          @Cyphar: lol, no it doesn’t

        • Cyphar on 20/02/2018 - 18:40
          +1

          @Burnertoasty:
          Yes
          it
          does

          Have you actually contributed anything factual in this thread?

        • Baysew on 20/02/2018 - 18:51
          +2

          @Cyphar: You first example is from 2016, your other examples relate to South Yarra.

        • Cyphar on 20/02/2018 - 18:53

          @Baysew: Which is still indicative of the fact that it still happens. Be it poorer outer Western suburbs or leafy inner city suburbs.

        • [Deactivated] on 20/02/2018 - 19:51

          @Cyphar: South Yarra is not Toorak and that jewellery store robbery was Apex. It was also unprecedented.

        • Cyphar on 20/02/2018 - 20:16

          @Burnertoasty: why does it matter who did it? The fact is that it happened.

        • [Deactivated] on 20/02/2018 - 20:26
          +1

          @Cyphar: A rarity, you’re delusional if you think the suburbs are comparable in any way.

        • Cyphar on 20/02/2018 - 20:37
          +1

          They are not. Your claim to incidents not happening in Toorak is the argument here. Not that they are on the same level. It's like you forget the point you are trying to make.

        • 2ndeffort on 20/02/2018 - 23:34
          +3

          @Cyphar: But in Toorak it's the butler shooting a pheasant!

        • [Deactivated] on 21/02/2018 - 00:22
          +1

          @Cyphar: You’ve found one isolated incident. Point Cook regularly features in the paper with headlines mentioning murder, hooning, shootings, gang violence etc.

        • Baysew on 21/02/2018 - 12:29
          +1

          @Cyphar:

          Which is still indicative of the fact that it still happens

          Just not in Toorak, at the rate of Point Cook incidents.

          Three people killed in Point Cook Christmas Eve crash

          Point Cook road rage incident

          Worker threatened in supermarket hold-up

      • Chewiebacca on 20/02/2018 - 12:07

        Point Cook is considered a dump by us in the SE lol, along with all of the western suburbs.

        • smartazz104 on 20/02/2018 - 16:44
          +9

          Yeah but that's because some of you are pretentious arseholes.

        • [Deactivated] on 20/02/2018 - 17:27
          +1

          @smartazz104: or because it is a shithole?

        • smartazz104 on 20/02/2018 - 20:19
          +4

          @Burnertoasty: Thanks for proving my point.

        • Chewiebacca on 21/02/2018 - 00:10

          @smartazz104:

          Lol, I don’t mind getting negged, just speaking from my own experience. It’s not about being pretentious, all the best things Melbourne has to offer imo are on the SE line, shops, bars, activities, schools etc. Crime rate is lower, roads are better, and for many industries there are more jobs available (look at Seek if you don’t believe this).

        • serpserpserp on 21/02/2018 - 18:29

          @Chewiebacca:
          Mate the SE suburbs are ok, if you live West of Caulfield, otherwise it's really outer suburbs.

          Lotsa good bars in the City/Docklands/Northern suburbs.

          I would argue that the roads in the SE are just as unfun as the rest of Melbourne. As for industries, well, lots all over Melbourne (as you say, check Seek). All other points a little negligible .

      • dufflover on 20/02/2018 - 20:57
        +1

        Point Cook is "very good"?
        I'm only in Altona and consider it "far" from my place. It's "not bad" but I would hardly call it "Very good", and that's ignoring current news topics. At least some spots of Williams Landing is near the train station.

        But sadly the whole property bandwagon has driven prices up. But as I see in this thread you're asking as an investor? In that case couldn't care less go for your life LOL

    • ade on 20/02/2018 - 09:20
      +2

      Long commute, lots of me too houses which were thrown up very quickly and limited facilities.

      • Frozensage on 21/02/2018 - 08:45
        +2

        Point Cook is just a massive estate with one tiny road leading in and out of it. You seen how shit tge traffic is down there? Infrastructure is lacking big time. Houses all look similar. The land is completely flat. Used to just me swamp land. No different to watergarden, pakenham or any of the other new estate suburbs gone up in last decade from the boom. Has a premium tag because it was one of the earlier ones to be setup.

        As investment. U can make money from rental anywhere. Best getting it near good public transport and near a uni or tafe.

        • haymo on 21/02/2018 - 12:09
          +1

          What are you talking about..? There's more than one road leading to the freeway. In fact, there are 4 entrances/exits…

          Infrastructure/PT could be better, although I don't catch it, so I'm only going by what the other half has experience on the occasions she's had to commute using it. There are loads of buses in the area now with developed estates, and as for trains, well… it's probably safe to assume it's not the best overall in Victoria. The problem is the west has one line at the moment.

          A lot of the houses do look the same, but you'll find that to be similar to any new estate. It also depends on which part of Point Cook you're talking about. Some estates in PC are much nicer than others in the area. I live in Alamanda, which I have no problems with. You pay a body corp, but that includes access to the gym, pool and conference rooms. FTTP as well, since this was one of the first trial areas. Unsure if the newer estates have the same setup, but I assume it does.

          Plenty of facilities (including sporting), shops, etc. and not far from larger shopping centers like Werribee. The new East Werribee precinct will see a spike in prices again. Also really close to big trade shops/outlets in Hoppers, which is awesome.

          Travel to the city can be a pain (~40mins - 1hr in the morning via car), although that can change significantly with breakdowns on the Westgate or in the Tunnel. No tolls to the city either, which is great. Dreading the development of the Westgate tunnel, but whatever. Been doing this for 7 years now and you get used to it.

          One thing that hasn't been mentioned is education - which I think you have plenty of good options to choose from, but conversely, there are mediocre ones as well.

          I also find the demographic really good. Very diverse, and generally white-collar working professionals. It is definitely an area where I would have no concerns in raising a young child.

  • yjun355 on 19/02/2018 - 21:03

    So, seems there are options:

    Tarneit: Seems like good value but unsafe?

    Melton (big property for under 450K): https://www.domain.com.au/4-mason-court-melton-vic-3337-2014…

    Point Cook (townhouse for around 500K-520K)

    • mysterytal on 19/02/2018 - 21:34

      Seems overpriced for Melton…as…well…it is Melton. Should be closer to $375,000. I'd offer $350,000.

      I mean what's the point. It's currently let for $300 per week. It's just a 3.3% gross return based on a purchase price of $469,000. Then you've got to deduct your buying costs, stamp duty, your management costs, mortgage interest, council rates, water rates, building insurance, eventual selling costs…maintenance etc… it's just not worth it.

      Put the money in the bank and you'll get a much better return.

      • gidxg03 on 20/02/2018 - 08:03
        +1

        I don’t think this is the strategy with an investment property if investing for the long term. Our advice was take out interest only mortgage. Rent out the house to cover the repayments and concentrate on paying off our own house. Once this is done divert what we were paying off our mortgage to investments property and get this paid off asap. Investment property mortgage is now getting rent payments and mortgage repayments so repayment period is accelerated. Continue this until paid off and your left owning a property that possibly has doubled in value with no mortgage.

        • mysterytal on 20/02/2018 - 14:09

          Doubled in value…that's gambling.

          As to the repayments covering the mortgage. The $300 a week the property achieves in rent will not cover the interest charged on the mortgage if purchased at the advertised price of $469,000 so where's the excess money coming from. If you put your 10% deposit into a bank account and add $100 a week to it each week it will double over the next 10 years. There's no gambling involved and the money is accessible at any time.

          The particular property referenced earlier isn't worth the asking price. It's worth $350,000 maybe at best $375,000 but not $469,000 which is what is being asked.

          You need to find value where the rent will definitely cover the mortgage. This property isn't that property.

        • gidxg03 on 20/02/2018 - 18:45

          @mysterytal:

          Ok yes 479k interest only is $1500 PM so good chance you’d have to add money to the loan but the benefits of positive/negative gearing can reduce your tax but I’m not an expert and this where it gets technical. Btw I’m not advocating on this particular property just on the potential benefits of investing in property for the long term.

    • cloudy on 20/02/2018 - 09:16
      +2

      Melton is so far away, lol the price growth in that suburb has been below par for ever now because no one has wanted o move out there. I would only consider buying there if I worked nearby, not worth taking the Vljne in.

      • Cyphar on 20/02/2018 - 18:56

        Melton is so far away

        Melton is 32 minutes by V/Line (36 with a transfer @ Sunshine if needing to get to Flinders St) and with the duplication of the line near completion, will see trains run more frequently. At 32 minutes, this is shorter than most trips people take from equal distance from the North, East or South. Used to take me an hour to get in from Frankston and 45 minutes from Bayswater.

        lol the price growth in that suburb has been below par for ever now because no one has wanted o move out there.

        It's the fastest growing area in Victoria. One of the fastest growing in Australia. House values have increased on average by $200k in the last 3 years. None of that indicates that "people don't want to move out there"

        • cloudy on 20/02/2018 - 22:16
          +2

          I'll just go with the anedotal figures given by you and OP. If melton gained 200k in the last 3 years and OP is seeing massive houses for 450k right now, you're telling me melton has circa doubled in the last 3 years. If that is true Australia is truely missing this diamond in the rough. But I've been reading property news for a while now, and not once in the "Best growth burbs of 201x" has Melton made it for best % growth.

          Something doesnt add up.

        • DingoBilly on 21/02/2018 - 00:46

          @cloudy:

          I imagine it's just cherry picking the evidence they like.

          The shitty rubdown place 3 years ago was 250k, and recently they saw a brand new place going for 450k! So 200k growth! Easy money.

          As others mentioned it's all a bit of a gamble though. If the buyer goes in thinking average growth then great. If they go in thinking 100% growth then they're morons.

  • HeWhoKnows on 20/02/2018 - 07:56

    As near to the bay as possible. Water front would be best

    • ade on 20/02/2018 - 09:20

      Chelsea?

    • kolorijo on 20/02/2018 - 10:58
      +4

      In the water, 100 meters off the beach

  • ELH05 on 20/02/2018 - 11:17

    Somewhere on the Mornington peninsular

    • GG57 on 20/02/2018 - 14:01

      Recent press that the current vacancy rates for rentals are <1%. Not sure on purchase prices, but the rental demand is apparently there.

  • LayG on 20/02/2018 - 11:55
    +1

    What about Lara guys. Its two stops from Wyndham Vale still the same metro ticket and peaceful (at least for now)

  • danger163 on 20/02/2018 - 12:27

    Look north.. Mickelham/Donnybrook

    • vinni9284 on 24/02/2018 - 10:11

      Wow, you would think that the outskirts of Melbourne ~ 36KM away would be cheaper.

      To step in to a new Estate in Donnybrook is at least $550K+

      Was there a few months ago having a look to see … gorgeous serene view of the valley/mountains.

      Cheers

      • danger163 on 24/02/2018 - 11:00

        You can get a house in 500K unless you want a land size >512sqm.

        • vinni9284 on 24/02/2018 - 11:28

          The cheapest block I have seen @ the Annadale Estate (Dec 2017) was $193K SOLD.

          It is a puny 213m^2 block 8.5 x 25m .. and there has been delays with titling I have heard. Forecast Nov 2018.

          It will probably cost you around $200K to place a house with all the fittings (internal and external) which will be around $500K as you have stated.

          Spending $500K for a house on a 213m^2 block 36KM North of Melb is absolutely ridiculous.

          That's my view.

          Cheers

        • danger163 on 24/02/2018 - 13:38
          +1

          @vinni9284: ok. Look at Botanical, Mickelham. Cheaper than donny

        • vinni9284 on 24/02/2018 - 13:47

          @danger163:

          Thanks mate.

          Will do.

          Cheers

  • swilso on 20/02/2018 - 12:49
    +2

    Don’t suppose you were in Lidcombe last night ? ;)

    https://www.9news.com.au/national/2018/02/20/09/27/man-hit-b…

  • Trying2SaveABuck on 20/02/2018 - 13:24

    kings Park, Deer park etc you will make a killing in 5 years if i wasnt getting married and travelling that's where i'd be putting my $$

    • yjun355 on 20/02/2018 - 14:00

      Why do you say that?

      • Trying2SaveABuck on 20/02/2018 - 14:28

        Sunshine and St Albans have hit the roof the past 3 years it is only natural the next suburbs go up following suit

  • jerjergege on 20/02/2018 - 13:37

    25, haven't had smashed avo.

    Automation Engineer for a bit over 2 years.

    I recently bought a house and land package in Clyde North for ~530K.

    So a couple suburbs past that and you can easily get it under 500k.

    I know someone selling (transfer of ownership) at the moment too.

    Savannah NEW YORK - Officer $530,000

    Savannah NEW YORK - Officer $530,000

    Lakeland GRANDE 22 -Tribute Drive, Pakenham $505,450

    Sark Street, Clyde North, $533,000

    PM me if you are interested, some of them are already sold but haven't asked my broker any updates on them since I already bought mine.

    • yjun355 on 20/02/2018 - 14:02

      Thanks. Couldn't PM as it might be disabled. Please share the details. Over 500K is over budget though

      • Lucky13 on 21/02/2018 - 03:15

        Hey, just looked how to PM for you. Looks like you go to your account then click on messages and type in name of OzB'er that you want to message etc. Hope helps :)

      • jerjergege on 21/02/2018 - 21:12

        http://houseandlandoffer.com.au

        Here have a look at their floor plans. i'm sure you can squeeze an extra 30k

  • yjun355 on 20/02/2018 - 14:04
    +1

    Summary so far:

    Melton : Its cheap. Pros and cons. Seems it would be place where you go as low as possible with biggest property available. Not worth spending more than 400K here.
    Don't buy new houses in general.

    West:
    Tarneit (safety seems to be a concern)
    Wyndham vale
    https://www.domain.com.au/38-weavers-street-wyndham-vale-vic…
    https://www.domain.com.au/45-whiton-grove-wyndham-vale-vic-3…

    Other Suggestions (45 minutes from CBD):
    Sydenham
    Kielor
    Taylors Hill

    So

    Wyndham Vale seems like a good spot. Around 45 minutes from City. Good decent 3 bedroom houses in early 400s.
    Low crime?
    Tarneit is bit closer but safety seems to be concern.

    What else do you guys think?

    • Trying2SaveABuck on 20/02/2018 - 14:33
      +1

      If you think Melton is any safer then Tarneit you have never been to Melton

      Wyndham Vale is not a bad bet if you can get a decent sized block i wouldn't buy a unit there

    • sd on 22/02/2018 - 12:08

      I just purchased a house in Tarneit and been living here for 3 months now. 3 bedder for under 500K, was being rented for about 1700 pcm. I have heard that it's not that safe but no issues so far.

  • gooner85 on 20/02/2018 - 16:46
    +2

    So for someone that has been buying in this range recently.

    West:
    Werribee (lots of infrastructure, trains, good shopping centre) Cons: bad traffic into city
    Wyndham Vale: same as werribee but newer places

    West:
    Watergardens, Sydenham, Taylors Hill: All great accessibility and trains are quick to city.
    Probably stretch at 500k for a house even Delahey.
    St Albans is also a good look very close to everything with hospital uni and 2 freeways

    North:
    Look at Craigieburn, Jacana area
    Feel free to PM if you would like more info

    • serpserpserp on 21/02/2018 - 12:16

      St Albans big land blocks makes them fairly expensive now.

  • idonotknowwhy on 20/02/2018 - 17:05
    -3

    Bitcoin

    • Dr Techno on 20/02/2018 - 23:33
      +4

      username checks out ;)

  • jnathanc on 20/02/2018 - 22:50

    Narre Warren/Hallam, South East of Melbourne. Hovers around 500k, great family location.

    • Dr Techno on 20/02/2018 - 23:32
      +1

      might be able to just slip into Dandenong/Endeavour Hills in a 2 bedroom townhouse.

  • Cheapsize on 21/02/2018 - 05:15

    Chelsea and surrounding areas are a perfect investment rental returns are frequently 1 percent of the current value or greater weekly which is what you want plus year on year growth consistently. Very resilient compared to other newer areas and properties sell within the month and are in short supply. It's a very safe and desirable area and you find a 2 bedroom under budget easily. Beach, amazing park , decent cafes and good food, sporting clubs even close to a winery and waterski theme park. Frankston line has express services now which means 40 mins into city. Close to Frankston and Dandenong and within range of Chadstone and Southland. My 2 cents hope it helps when you do your research.

    • JIMB0 on 21/02/2018 - 06:48

      Frankston line has express services now which means 40 mins into city

      You'd only be at South Yarra in 40 minutes, thats if your're lucky and the train is on time.

      It's a very safe and desirable area

      When catching the train into the city from Frankston it is in Chelsea where a lot of the rat bags seem to hop on. Last time it was a bunch a of young teens on scooters riding up and down the carriage yelling at people and playing loud music. Other times it's junkies.

      • serpserpserp on 21/02/2018 - 12:25

        So 45 minutes to the CBD? South Yarra only two stops out?

        But I gotta ask the people that live in Chelsea and Bonbeach: Any side effects from having the massive Melbourne Water treatment plant 2km or less away? Does it smell or cause problems with water based insects?

        • Cheapsize on 21/02/2018 - 14:50

          No, it smells if you drive past it. Which you don't tend to unless you are heading towards Cranbourne or Patterson lakes 30 seconds of smell which reminds you to avoid driving to Cranbourne.

      • Cheapsize on 21/02/2018 - 15:22

        Kids with scooters the horror! Junkie looking people! Here's the facts https://www.crimestatistics.vic.gov.au/explore-crime-by-loca… in Kingston theres a lower crime rate than surrounding areas both in total crimes and crimes by population based on 2017 figures. Demographics are that there's mostly young professionals, young families old people and a small housing commission bit at the very back of Chelsea. The main drug affected people are elderly stoners. Which if I had a choice in drug affected type it would be those people as they just keep to themselves. Its a gentrified area that has strong public transport links. Median house prices for 3bdr is about 800k to 1.2 mil depending on area and growing year on year. 350k appartments 5 years ago at 420k now.
        35 mins from most major shopping centres in south east chadstone Southland keysborough Dandenong Frankston. Glen Waverley is close enough to go on a regular basis. point is great road accessibility and public transport is very accessible

  • FatBlanket on 21/02/2018 - 06:35
    +3

    500k won't even get you a cab to the auction

    • idonotknowwhy on 21/02/2018 - 06:40

      That's why uber is "disruptive".

  • digitalbargain on 21/02/2018 - 09:27
    +1

    500k is tight.. with dandenong you;d be able to find something I'd think.. but probably doesn't meet your 'nicer' suburb requirement..

    I think if you look to the foothills, you could probably find something along the trainline in that budget (upwey, tecoma, upper ferntree gully, ferntree gully) - much 'nicer' suburbs and within an hour to CBD on the train..

    i don't really know the westside all to well

  • freakatronic on 21/02/2018 - 11:39
    +1

    Nicer place
    Sub 500k

    Choose one.

  • SupeNintendoChalmers on 21/02/2018 - 11:47

    You can get a decent House/Unit in Patterson Lakes

    https://www.realestate.com.au/property-unit-vic-patterson+la…

    • Ametric on 21/02/2018 - 15:04

      I believe this will be sold at around 600k, so doesn't fit in OP's criteria…

  • [Deactivated] on 21/02/2018 - 12:30

    Cant believe those are the 650K area now.

    Sunshine West, St Albans among the best bets for Melbourne investors.

    http://www.news.com.au/finance/real-estate/melbourne-vic/sun…

    • [Deactivated] on 22/02/2018 - 10:30

      Great areas with strong time proven primary industries. No unions to collapse the industry either.

      Meth.

  • kindra on 21/02/2018 - 13:25
    +1

    There was a similar post from before (not to long ago) asking the same question.

    https://www.ozbargain.com.au/node/358890

    • serpserpserp on 21/02/2018 - 15:06

      Feels like a new one every week these days.

  • lunartemis on 21/02/2018 - 20:29

    We got a land in Thornhill Park (new suburb in the west) in Nov 2016 for 160k and the bank valued it for 190k this week and we haven't even built anything yet…

  • scbrother on 22/02/2018 - 13:03

    All these suggested suburbs are so far from the city and depressing to think about. Get a 2 bedder in Reservoir. 12-15kms from city and has the established look and feel with plenty of amenities.

    • serpserpserp on 22/02/2018 - 15:05

      Just make sure you go South Reservoir, Central Reservoir has a real "brown" feel to it. Houses are a little depressing.

      Don't live on the Broadway side cause it is depressing and looks like all the shops are closing down! (except for the only decent café out that way Lady Bower).

      • scbrother on 22/02/2018 - 18:49

        I agree though I quite like the hood charm of many of those shops lol…. And I'd happily live in any part of Reservoir than 50kms out west

  • 4valor on 22/02/2018 - 15:03

    The Ozbargain community will to do anything to save a buck, but willing to pay ludicrous prices for trash Melbourne property out in the sticks? Seems not even you are immune…

    • serpserpserp on 22/02/2018 - 20:09

      What is your suggestion for OP then?

      • mysterytal on 22/02/2018 - 21:40

        Increased superannuation contributions.

        With my super I can elect to invest in property….commercial property but it's still property and I don't have the hassle of managing the property portfolio myself. The money is invested with thousands of others to spread the risk over hundred of properties.

  • accountant4Jesus on 22/02/2018 - 18:22
    -2

    Don't buy any property in any capital city in Australia. It's way overpriced, and the housing market here in Australia is overdue for a GFC-style crash. If you buy now before the crash you'll end up having a loan that's at least 50-80% more than the market value of the property, and the value of the property will never get back to what you paid for it.

  • [Deactivated] on 22/02/2018 - 20:36

    franstain

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