New House in The New Western Suburbs or New Townhouse Closer to Melbourne City

Zviar on 05/01/2021 - 20:40
Last edited 05/01/2021 - 22:58

I am wanting to buy a property but confused.
Option 1:
Buy a new House in newer western Suburbs
35-40km away from city
Land Area : approx 400 sqm
Price :approx 550k

OR
Option 2:
Buy a Town House little bit closer in City West (Footscray/Maidstone/Sunshine)
12-15km to the city
Land Area : approx 160-180sqm
Price : approx 670k

I have learnt that property value rises pretty well in newer suburbs, and there are long term benefits of investing there. Not fully aware what other benefits are there.
Also the other side, this increase doesn't happen much closer to city from what I learnt.
So does this mean, its a risk buying a (old or new) property near city?

Reason for me, being inclined towards city:
1) I ride a bike as main means of transport and recreation
2) I am so used to the facilities and conveniences being in city ( like most ppl do )
3) Liveliness within inner city

But confused ever since this search has started.
So seeking advise.

P.S: Is this a good time to start looking for property? I am hearing about further dip in real-estate

Home & Garden

Comments

  • holdenmg on 05/01/2021 - 20:41

    1

  • iNeed2Pee on 05/01/2021 - 20:51

    Will you still ride if you go with 1?

    • Zviar on 05/01/2021 - 22:32

      Yes. Also I hope to do. I am not into any other sport or activities apart from bike riding.
      And I did visit a few of those western Melbourne suburbs, looking at place and the infrastructure available there, I might ride irrespective of place, but I doubt if I would be able to sustain the same levels, if settled there.

  • Quantumcat on 05/01/2021 - 20:52
    +5

    Depends where you want to live? If you can work some days a week from home, or there's good public transport (you don't have to change buses/trains more than once or walk too far) or you plan to have a family at any point in the next couple of years or have a dog then I think the house in the suburbs is a no brainer.

    If you can't drive or love going to the theatre, live music, comedy, go out drinking most nights etc then the townhouse in the city is a no brainer.

    If in between you have to decide for yourself.

    Personally I wouldn't live in an apartment or townhouse in the city unless I was renting - you could have neighbour or body corporate problems, and it isn't where you will want to spend the rest of your life (unless you want to stay a trendy single or childfree trendy couple forever).

    What about buying the house, living in it long enough to qualify for any stamp duty concessions you can get, then renting it out and renting a pad in the city? When you're ready to settle down you can move there. And you get the capital growth of a proper house in an up and coming area and no risk of anything too bad with the pad in the city.

  • Drakesy on 05/01/2021 - 21:00
    +3

    Wouldn't be buying property in sydney/melbourne, the market is peaking.
    Others states are probably well set though.

    How much do you value your time?
    To be honest if i could halve my daily commute for an extra cost i'd more than likely do it.

  • jjjaar on 05/01/2021 - 21:00
    +3

    Which one would you prefer another 5km lockdown in?

  • Hybroid on 05/01/2021 - 21:02
    -1

    I love renting in the CBD, definitely convenient and hassle-free, but I wouldn't buy in or even near it. I would want my own larger space and slice of heaven in peace and quiet.

    Where are these brand new 500k houses in the West? The new Aerotropolis?

    • kerfuffle on 05/01/2021 - 21:17

      The OP listed Melbourne suburbs …

      • Hybroid on 05/01/2021 - 21:28
        -1

        Fair observation, not familiar with them.

        • Zviar on 05/01/2021 - 22:36

          Yes mate. I am referring to Melbourne Suburbs. I Just updated the title with Melbourne.

    • lgacb08 on 05/01/2021 - 21:30

      Melton

      • Zviar on 05/01/2021 - 22:37

        Yes that's one of the suburb, when referring to far west.

        • Hardlyworkin on 06/01/2021 - 07:32

          Do the houses out there come with a free Commodore?

          Are you buying this place as an investment or your home? It seems this answer should answer your question on which option to go with.

  • Some Guy on 05/01/2021 - 21:08
    +1

    "I have learnt that property value rises pretty well in newer suburbs, and there are long term benefits of investing there. Not fully aware what other benefits are there.
    Also the other side, this increase doesn't happen much closer to city from what I learnt.
    So does this mean, its a risk buying a (old or new) property near city?"

    You state that you are confused and this para confirms that, but where have you learnt this? REA in Bizarro World?

    • Zviar on 05/01/2021 - 22:49

      I came to know that from a colleague and also did inspect few properties for sale end of 2019 and beginning of 2020.
      One of which is a pre owned TownHouse in Vine street, Braybrook, VIC. 3 Bed, 1 bath, 1 car park with total of 140 sqm.
      That was 2nd resale of that property over last 6 years.
      In the last 2 sales, the price has increased a bit but not much. I was almost ready to buy this one, based on location.
      But my friend/colleague has pulled me back saying its not worth it.

      Even I was Ok to let go later, I noticed the property had some visible issues too. ( different story altogether).

  • yellowfever on 05/01/2021 - 21:19
    +2

    if you are buying to live in long term, buy where you feel most comfortable to live in and gives you the most happiness.
    the demographic in the further further west different to the inner west. I'm not going to say here whether it is better or worse, you can visit the area, go to the shops, drive around at night and assess for yourself.

    From your 3 suburbs, Footscray is generally more expensive and you will get less space for the money. Maidstone is the next best in terms of value and proximity to Highpoint, however north of Ballarat Rd is typically more expensive (and better) than south of Ballarat Rd.
    You really have to split each corner of the suburb to find the best value in these inner west suburbs and its pros & cons.

    Also less options for online food deliveries in the further west, hardly anything other than pizza, Maccas/KFC/HJ.

    If you are buying to invest, obviously location is KING, but the land size is going to be your biggest asset.

  • GourmetFoodie on 05/01/2021 - 22:12

    Wow I thought I’d gone back in time looking at your price estimates for inner city Melbourne.

    To check myself I looked up Footscray townhouses….assuming standard 3 bed, 2 bath, 1 car space are minimum $800k+

    Maidstone was similar but slightly cheaper. Mid-high $700ks.
    Sunshine slightly cheaper than Maidstone.

    $670k for something good inner city sounds highly ambitious. But perhaps you are thinking a 2 bedder high density style?

    Regardless….I think you need to provide more info before people can give opinions.
    Generally speaking though, inner city ALWAYS delivers higher capital gains long term if it is a standalone piece of land with no body corporate or shared driveways/joined walls. But at the end of the day is this an investment or are you buying your “forever home” because in that case it’s all about the lifestyle you want to live. For many in post COVID world…commute has become largely irrelevant and people just want space.

  • brotherfranciz on 05/01/2021 - 22:41
    +1

    Reason for me, being inclined towards city:
    1) I ride a bike as main means of transport and recreation
    2) I am so used to the facilities and conveniences being in city ( like most ppl do )
    3) Liveliness within inner city

    Option 2. You sound like you are inclined to pick option 2 anyway. Do what makes you happy and what fits into your desired lifestyle.

    • Zviar on 05/01/2021 - 22:57

      yes I am.
      I would be really happy to settle down with Opt 2, But in a dilemma at the moment.

  • AustriaBargain on 05/01/2021 - 22:42

    I'd pick the townhouse, for convenience reasons who cares about near term resale value if you plan on living in it. You can always rent a cheap beach house for a week if you need to get away sometimes.

  • dtxau on 05/01/2021 - 23:02

    35km from CBD would be past Werribee and be around Manor Lakes/Wyndham Vale. If that's the case, I personally would go with Footscray/Maidstone/Sunshine. It would be hard to get into Footscray with your budget but Maidstone and Sunshine should be fine.

    • Zviar on 05/01/2021 - 23:12

      yeah mate. When saying Footscray, I actually meant adjacent suburbs like Maidstone, Braybrook.

  • hoey888 on 05/01/2021 - 23:42
    +2

    Why not spend 6 months or a year trying option1 and/or option2?

    I know rent money is dead money; but purchasing a house is a lot of money. Better to try before you commit to buy.

  • Meho2026 on 06/01/2021 - 07:47

    Option 2, closer to the city and the action. Save option 1 for when you have a lobotomy

    • Zviar on 06/01/2021 - 10:40

      I had to google to understand 'lobotomy'. But understood what you meant.

  • dasher86 on 06/01/2021 - 08:39
    +1

    Sounds like your current lifestyle option 2 is the best for you.

    May I ask what is driving you to want to buy a property?
    Is it for investment or is it to live / or both?

    Have you tried renting in any of the locations that you will be purchasing in?

    Investment in a townhouse doesn't make as much sense as investment in a house.
    Living in a townhouse for an inner city lifestyle makes sense but living an inner city lifestyle in woop woop doesn't make sense.

    As suggested above.
    If you want to give into the pressure of purchasing a property and have that inner city lifestyle - i would suggest buying in woop woop and renting in the inner city.

    • Zviar on 06/01/2021 - 11:17

      Good question mate.
      I have been renting forever and want to have a home to live and a way of investing too.
      No I haven't tried renting in any other location.
      I have rented a few places, but every time along tram line or Train line convenience around Essendon. Because I don't drive and got so badly used to convenience.

      Also By saying "i would suggest buying in woop woop and renting in the inner city."
      In this case, I would be paying 2 places right?

      • dasher86 on 06/01/2021 - 11:47

        yes essentially you will be paying for two properties - rent income hopefully offsetting for one of them.
        The property you own will be an investment property - rented out and most likely negatively geared.
        You will have all the pros and cons of a negatively geared rented property (speculation for property growth, tenants, tax benefits etc).

        Then you just rent where you want to live.

  • stirlo on 06/01/2021 - 10:21

    Is your work in the city? How are you going to get to work? If public transport those new suburbs are terrible.

    • Zviar on 06/01/2021 - 10:39

      I am working near Airport West since 5 years. Usually Tram 59 or bike ride into work.
      And after the lockdowns and so, I have been working from home all the time.

      • stirlo on 06/01/2021 - 10:46

        If you're working near airport west then you'd be mad not to go the townhouse that's within cycling distance of both your work and the city.

        What would you do with the extra space at Melton anyway? Traffic is only going to get worse on that side of town as well.

        • Zviar on 06/01/2021 - 11:02

          Frankly, I have no idea what I would do with those extra space.
          I definitely would use Room 1 as bed room, Room2, as my studio sort of a thing ( Music and stuff ).
          Room3, wfh and zwift ( indoor bike riding ).
          Room 4, may be guest room or generic storage.
          Oh no. I started filling rooms.

          Unlike now, I am living in a 1 bed room, which looks like dorm. Almost everything in my bed room.

  • OzHunterNSW on 06/01/2021 - 10:39

    I thought you were suggesting a "real town house"…. in the City…. but you are in areas one would require a gun for safety. But then again, do you really want to commute 1H to work, of a leisurely 10min by tram?

    • Zviar on 06/01/2021 - 11:08

      At this stage, Hands-down I prefer few minutes of train/tram-ing. I really love to live around places that have trams.
      But I see, every place that tram touches are drastically expensive.

  • 82norm on 06/01/2021 - 11:01

    What are your future plans, marriage, children. Will the townhouse suffice, short,medium term based on the scenario?
    There are pros and cons and I’ve been there. We bought a semi detached, terrace house inner west of Sydney (5km CBD) and it was great, but when kids arrived we out grew it. We sold and moved to a full house with yard etc. it was still close to the city, so no big deal, but had it been 30-50ks away, I think I would have regretted my decision.

    However, if you buy in the burbs first you wont need to relocate if that were to happen and in someways start all over again. Eg , moving house, refurbishing, possibly refinancing, house repairs/mods etc.

    That all and said, go the townhouse, convenience, time saved commuting, lifestyle etc. Families of 4-6 use to live in shoeboxes and they managed to get by.

  • pyramid on 06/01/2021 - 11:11

    Probably check point cook..you may need to extend your budget upto 6-6.5 but 25km from CBD and nice suburb..

  • nishakhurana on 06/01/2021 - 13:05

    Go with what you see yourself being happy. Once you buy a house, will be hard to change it unless you got enough savings.

    • Zviar on 06/01/2021 - 15:26

      Thank you. It would be one off.
      Definitely I don't want to end up buying twice or change immediately.

  • ShahAU786 on 06/01/2021 - 13:15
    +1

    All the best for your new home. Sharing this from my personal recent experience:

    Learning from lock down situation, I am glad we have a massive backyard in our rental property.

    We have recently bought a land in outer South East Melbourne (Berwick), not a huge city fan for living. May be because I don't work there. City is too busy for me. Another reason to buy the land in outer suburbs to have a decent land and home size for a young family. Our priority was schooling and decent land and home size with a backyard. It ticked all the boxes.

    If is is right time for the housing market? I have been told my many that don't buy the land in pandemic, wait till it is over. It is not over and house / land pricing are not going to go down. Ever! I am glad that we bought that land. If you think you're ready to buy a house, it is the right time then. Not before, not after.

    Hope this helps :)

    • Zviar on 07/01/2021 - 10:54

      Congrats mate. Berwick is pretty good place. I think Eastern suburbs are very well established and more expensive than west.
      Schooling haven't thought about it yet.

      Thanks for your word about — time of buying.

  • avoidfullprice on 06/01/2021 - 14:37
    +1

    If I work 5 days a week in the city, I'd live closer to city.

    Too many owners in the townhouse strata can be problem when comes to community spending. Wouldn't pay for pool maintenance. Parking at townhouse can also be a bitch for guests. You know, some residents might have more cars than their garage can fit. YMMV

  • Zviar on 07/01/2021 - 10:47

    that's something new to me. Does that mean, in near a large community with dozens or over hundred of townhouses would have a problems? I thought the other way, because it being a big one, they could pool in money easily and get things in place faster.
    I am asking this because, there is a builder near Highpoint area, with constructing in progress having plan of 40 or 50 THs, and is constantly alluring me to invest.

    And parking thing, yep I agree.

    • dasher86 on 08/01/2021 - 09:26

      Yes.
      Try getting a hundred or dozens of owners on a strata to make a decision.
      Not everyone wants to spend money on maintenance, or make decisions on common areas.
      To get anything approved you need to go through the owners committee.
      And then you have the other problem of terrible strata managers.

  • enjunuet on 08/01/2021 - 09:46

    I think you need to look at your current status and needs and then have a 5-10 year plan. It looks like you have no kids at the moment so don't really need a bigger place but this might change in the future. If this is the case, convenience now would be more relevant and space would be more relevant in the future if you think you want kids.
    Have you thought about buying a place in the west and renting it out whilst you rent in the inner city until you need more space? This way you get best of both worlds in that you get to live close to the city now, but get your foot in property as well and have a plan for the future. The rental would be an investment so you can negatively gear it.

  • HeWhoKnows on 08/01/2021 - 16:06
    -1

    Nobody here can help you on this one OP

    You are asking to decide between chalk and cheese

    Everyone has different priorities and tastes
    Contributors will simply give you a choice based on their own priorities and lifestyle which has nothing to do with yours Im afraid.

    Which one do YOU prefer?

    Have you considered asking your partner????

    That answer is the one that counts the most!

    • Zviar on 11/01/2021 - 11:53

      Another person asked me the similar question.
      I am single. Not in relationship either.
      so decision is solely on me.

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