Hi Everyone!
This is only my second time on the website and think it's so great to have so many investors sharing information and helping each other!
I am very new to property and investing. I have just finished reading Steve McNight's first book, and found it very inspiring. The idea of positive gearing sounds like a great way to start off. I have been researching suburbs of Melbourne/greater Melbourne, where this may be possible.
Yesterday, I took a trip to Geelong and went for a drive towards surf coast (portarlington, ocean grove, torquay direction). There are a few suburbs, very close to water; Clifton Springs and Drysdale, which are stil very affordable. These appear similar to the early days of all the regions I mentioned along surf coast, but not as developed and less touristy.
Dropped in by the main real estate agency (Allpoints) and was very surprised to find out that a unit and even a house can be purchased <$200,000 and rentals are in high demand. In fact, there are currently only 4 rental properties available, for both suburbs; Clifton Springs and Drysdale. The possibility of positive gearing certainly exists.
I would like to imagine that being waterfront and so close to both Geelong and Surf coast these have great potential.
Would love to hear your opinions!
Thanks
Liz
MelbourneLiz,
I just did a quick check on r/e.com.au and found 103 properties for sale in Clifton Springs, with 17 available rentals. No doubt there are many more, but the agents don't put every property on the site.The cheapest property for sale listed was $209k.
Look at this one: Property No. 103314511
http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=103314511&f=0&p=10&t=res&ty=&fmt=&header=&c=85906265&s=vic&tm=1186597860Not even close to pos geared.
Are we talking about the same Clifton Springs?
Hi LA Aussie,
Thank you for your reply. I am surprised with your net search results. I have only spoken to the actual agents, did not do my net search, yet. In Allpoints Real Estate, Clifton Springs on the weekend, and agent gave me some brochures with units/old house for around $190 000, already tenanted for around $230 p/w. They also mentioned that price can be negotiated.
Considering your example, at worst, such a beach front suburb seems to have promising potential….?
Appreciate your advice,
Thank Liz
Hey Liz,
That search was about 1 minute, so it was by no means comprehensive.
To go out on a limb,
I reckon that you can't go wrong with virtually anywhere on the Bay, especially with water views, that is within commute distance of either Geelong and Melb; especially if it is at the bottom end in price. Look at Seaford, Frankston, Edithvale; these areas were always shockers, but not now. People are commuting from an hour and a half away these days. Poor bas**rds; now THAT'S the rat-race!With affordability at record lows, the demand for all of the above can only go up.
The demand for bayside with views is already unbelievable. On the other end of the scale; bayside, water views and top end quality houses still go well; just the enrty level is the killer and the rent returns are usually crap.
Back to your comment about pos gearing; I don't think it is possible in the areas you mentioned. We just had another .25% interest rate rise today, and to be pos geared the rent return would need to be at least 10%. I can't imagine those figures are in Clifton Springs, if they are; buy as many of them as you can.
Hi Everyone,
I'm a first timer on this web site. I'm thinking of buying an IP in the S.E Region of Melbourne from Mordialloc to Cranbourne. Any suggestions from anyone?
Cheers…
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