Looking to buy a investment property in Melbourne. Budget is $700k-$800k.
Been looking around south (Berwick, Clyde, North Clyde) and also west (Tarneit, Manor Lakes). But it's been hard to make the decision.
Would love some suggestions for which suburbs are good within that budget and why (schools, public transport, etc).
Prefer comparatively newer house (new or around 5-6 years old).
Thanks in advance.
Any particular reason why Craigieburn?
It’s immigrant heavy and hence, primed to expand with more businesses and residential housing.
Also, Hume council is apparently going to be approving acreage land up north for housing and construction.
My ‘friend’ and a couple of his partners bought 100+ acres of acreage land in Mickleham and are preparing it for development before they start building on it, pending approval and they aren’t the only ones doing it, there’s more and more investors/builders investing in that region, given how cheap(relatively) the land is compared to the rest of Melbourne.
No doubt you can make a lot of money being acreage and subdividing it.
I'm still skeptical that existing houses Craigieburn and north of, is a great spot to invest.
Clyde to Tarneit?
Where do you work?
Tarneit
The 'Paris' of the west?
Tarneit, ironically, means white for the local indigenous mob.
You'd be hard pressed to ………
Tarneit, ironically, means white
https://translate.google.com.au/?sl=auto&tl=en&text=Tarneit%…
It's where Uber drivers prefer to live…
Paris , Texas
Why would that matter?
If you work closer to Tarneit but live in Clyde you could be up for a 2h commute in peak traffic.
Surely only the prospective tenant's workplace matters in that case?
@coxjon: Ahhhhh. My bad. I completely missed the investment part. Thanks for bringing it to my attention.
Bendigo or Ballarat…
Might as well if you're cross shopping Clyde or Tarneit
Bendigo or Ballarat…
They are 160k and 120k respectively.
Too close for the OP.
will be the center of the CBD the rate that housing is exploding out that direction…
Lived in a few of these regions and surrounds. My thoughts:
Been looking around south (Berwick, Clyde, North Clyde)
Berwick is really good - it's an existing suburb that's been around for a long time, lots of family friendly activities, shops, gardens…etc., also a bit more warm and welcoming than many of the newly built estates that are a bit lifeless. Public transport is good around Berwick with a train station and reasonably good bus network. Several good schools around the area too. Generally quiet neighbourhood.
Clyde and Clyde North feel lifeless to me, like plopping an estate in the middle of nowhere. Non-existent public transport, poor road linkages, there's just ridiculous traffic all the time because there's nothing to do in these areas, so people are always having to drive longer distances to do regular things like school drop-offs, shops…etc. I personally wouldn't want to live in Clyde.
and also west (Tarneit, manor lakes).
Similar issue to Clyde, but the public transport situation is better, especially if the Geelong V/Line upgrades go ahead. I prefer living on the east vs. west because overall you do get better infrastructure. West Gate tunnel will dramatically improve car access to Tarneit and surrounds IMO, and ease a lot of the pressure on the West Gate Bridge if you regularly drive into the city.
I wonder which suburb you must live in, Jv.
Bonnie Doon. Think of the serenity.
Plus you’d have change for a Torana
After you move the Camira.
Sunbury
Caroline Springs. Bus, train, parks, lakes, restaurants, groceries anywhere and everywhere. 2 of everything nearby Aldi, Chemist warehouse, etc. Costco opening soon about 5-10 minutes away. In between two council, Brimbank puts on great activities, Melton does too - went to a free barista course recently. We've been deliberating about selling our house for a month and can't find a suburb better (we are looking at either Berwick or somewhere in Gold coast). I can keep going and going..
Caroline Springs
Nice library there…
Did you hear about the bomb they found at the Caroline Springs library?
The locals were shocked. They didn't know there was a library in Caroline Springs.
Do you live in Caroline Springs? Who's "they"? What bomb? Anyone who doesn't know where the library is hasn't lived here long enough
@kobeduck: I live nearby and never know there's a library in that suburb lol. That stretch of land near the freeway seems never takes off as people seems in a rush to get on the freeway or rather go deep into town centre. What's happening to the planned Dan Murphy store there as I haven't seen any. Even the cursed patch of land around Masters or Burnside hub is getting more traffic.
@lgacb08: lol surely if you live nearby you don't live in a better suburb. Woodlea? Derrimut? Deer park? Thornhill park?!? hahaha
If you would like good capital growth, buy in Melton.
But thats too far right ?
hahahahha. Good one…
Out of all the places you listed, Berwick is the only decent option in my opinion. Clyde area is a total dive, nobody likes being there, it ticks almost no boxes in terms of investment grade property, Its quite possibly the most depressing place in Melbourne. Having said that, given the rental squeeze and the coming influx of almost 1m immigrants, you wont have an issue with rental income. An area near Clyde North but much MUCH nicer is Botanic Ridge. Close to Cranbourne but feels nothing like Cranbourne or the surrounding area, don't know whether its a good investment opportunity, but aside from Berwick it is the only part of the outer South East id live in.
Brave person buying an investment property in Victoria given their draconian anti-landlord regulations and rules
Whats that ? How does that affect property investors ?
Tenant refuses to pay rent and it takes a 6 mth delay in getting an eviction order at VCAT
Tenant gets a dog which has free range inside he house, pissing on the carpet, which seeps through into the floor boards.
Tenant does extensive damage to the property for which you have no chance of getting reimbursed.
etc etc
(been at the receiving end and never again!)
sounds like youre in the wrong 'business' mate!
@franco cozzo: Was only trying to offer OP some constructive advice, and as stated in my post "and never again!"
meaning never again being in the "business" of a landlord. Seriously, it is just not worth the aggro.
Mate, he got serious advice. If you're asking that question you should redo your research carefully. The latest rental reform did add extra burdens to landlord so make sure you know it all before diving in.
Brighton/Toorak
a parking space in brighton/toorak?
Plus a nice heavy walled cardboard box and you’re set
Used to live in Altona Meadows and loved it. What's it's prices like these days?
Agree.
Narre Warren (close to the North)
next to freeway, 5' to berwick, fountain gate shopping centre, lots of good private & public schools
I wouldn'y buy an investment property in Melbourne.
I think there are better opportunities in other cities. Plus rental yields are so low in Melbourne.
For an investment property, you actually don't want a 5-6yo volume builder house. I think the 40-50year old homes will give you less problems over the longer term. Plus for your money, you'll get more land value, which is the only thing that goes up (not the building).
This. For 700-800k I'd buy an older house in Fawker or Reservoir on 600m2 that will probably do nothing but go up as Melbourne keeps sprawling out. Eventually just subdivide it, build some townhouses and cash in, like has happened to most suburbs south of it.
Berwick might be a nice place to live but you don't make returns by buying what's currently trendy, you look ahead a bit.
No chance for that amount you can get a liveable property in Reservoir that can be subdivided. It essentially you have to have capital to sink in for at least 5 years to realise the gain later on. OP is looking for quick way to the property market and get someone to pay for the interest.
I personally would invest in Brisbane.
I think Brisbane has been a great option but now think it has already run it’s course.
Too pricey for what it is.
Maybe Adelaide or Perth are better options.
Deer Park has great freeway options to the city. The new train station is very quick to the city. A mix of older houses and newer ones. Good amenities and food nearby plus Kororoit Creek is an excellent pocket of nature with tracks for bike riding and walking. Will also be a cracker of a house with the budget range you have.
I'd look up public school secondary ratings and aim at one of course higher up the rankings within the zone to maximize capital gains. The current big trend with living expenses is pulling students out of private schools and seeking a great govt one. Personally I wouldn't bother unless it was a great bargain outside of that criteria.
any recommended suburbs based on the schools ?
Brighton
Budget is $700k-$800k.
Go for anything along the Monash, Eastlink or Peninsula Link I reckon.
As a property investor myself in VIC along with my parents I ask why the hell would you want to do this? There has been a public campaign chastising landlords as enemy number 1 in the MSM.
My parents are trying to sell one of their properties and the tenant won't even move out. You have to file for a VCAT hearing out of your own pocket that can't be claimed back. After our VCAT hearing and providing all evidence including 60 days notice to vacate and contract of sale via registered mail all according to the law we still lost. Our VCAT hearing was basically a kangaroo court.
My property was damaged by the tenants who moved out and I'm currently waiting on a VCAT hearing for compensation however there are 18+ month waiting periods. It's a real kick in the guts when you work your ass off at an early age and put your life savings into something only to have it damaged.
VIC property leasing laws are heavily favoured towards tenants so the government can shrug off responsibility to house them.
You're better off putting your money into a savings account and get the 4.5 - 5.5% yields they're offering without the headache of maintaining a property, all the expenses that come with it and dealing with dodgy tenants.
cap gains and tax breaks?
Not surprised you’ve been downvoted, everyone thinks property is the best investment vehicle.
My ex-colleague was spruiking Mernda to me a few years back.
Frankston
Anywhere. Guaranteed to double in 7 years’ time.
I would seriously reconsider buying an investment property, especially in Victoria.
Look at the currently publicity - you will join the ranks of the so called 'greedy landlords' just because you need rental to help with the upkeep of the property.
These days investment properties do not make financial sense. They are a loss making exercise for most small players (and if you have less than 5 properties you are a small player) - far to many costs which keep going up much faster than inflation - there's Land Tax which can be very substantial if you buy a landed property, there's all the maintenance and repairs including forced yearly inspections, insurances etc…
Also, should you get a bad tenant, it's a very expensive and long process getting them out.
And if you do get capital gain, it's subject to capital gains tax.
Run the sums - it's just not worth it. Better off looking at other investments, eg ETFs and shares.
Just spoke with a friend who spoke about buying real estate up north, in the Craigieburn and upwards region.
Apparently that’s a great spot to invest if you are expecting returns in the next 5-10 years.