Hi All
I am interested in your thoughts with the new home and land packages in Melbourne. I have been looking in Morwell and Warrnambool as well as Sunbury as it is slightly closer to the CBD. My intention is to ensure it is CF+ but as I am an out of state buyer I would like local experience and knowledge. The Governement is giving 20k to new homes and 26k to New homes in regional Melbourne.
What are your thoughts on both regional and metro?
Rental Returns aren’t so bad, from what I have seen in all 3 suburbs.
Looking Forward to Your Thoughts
Pete
Frankly these are third rate locations for investment. <moderator: delete advertising>. A bad investment will stop you investing further.
Nigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
Hi Pete,
Given the estates are 'eligible' for financial incentives this implies, to me, thet the estates are targetting first home owners. If this is the case you are likely to be surrounded by larger than normal numbers of people who are very susceptible to interest rate movements and thus your property is likely to suffer from it's proximity to such owners.
For me you would be better off looking at something more mainstream where your neighbours are more representative of society demographics.
Rent returns are only one part of the whole equation.
Hi Pete,
Good returns are available in rural and semi-rural areas, but you need to do a heap of due diligence before you make a decision. What are the numbers involved in each option and why are you buying :Is it for cash flow, capital growth, a lump sum when you sell etc?? I have a property coach at RESULTS Mentoring and they are great when it comes to helping you sort the wheat from the chaff when you're looking to buy. They help you work out what research you need to do to mitigate your risks and what profit (or loss!) you can anticipate for each property you might be looking at. I'd think you'd benefit from having a coach guide you in making a decision – especially since you're interstate. The area's you're looking at may well be good, but how do you know unless you've done some really thourough due diligence.
Happy to give extra info if you want to know more.
Cheers
RochelleHey Pete
What state are you in?
We don't do much in Melbourne ourselves as we don't feel the numbers are there.
When looking for an investment you need to consider 3 main factors.
Infrastructure
Government Spending
Population Growth
Growth on your property will be totally relevant to how much of those 3 factors exist.
If you have a little Infrastructure, a little government spending and a little population growth, then you will get a little capital growth. If you have these 3 in bucket loads, Like Mackay, Gladstone etc, then your opportunity for growth is huge. This is the same for rental growth as long as the demand out weighs supply.
QLD has a $10,000 government grant until the end of April, so there are other benefits in other states also.Hi Kouts, Have to agree with Anthony here. Gladstone region is the place to go based on the market indicators. I would add one aspect to the three he suggests. Current rental returns being achieved through these 3 factors in the area you looking in. An area may have all 3 factors but currently achieving 3-6% yields like most areas we have in Vic, and the rest of Australia. But in Gladstone, the 3 factors are there in spades, and currently the rental income goes a long way to covering the holdings costs. If your going to invest, why not seek the area where the tenant and taxman pays the majority of your investments holding costs as your property grows in value?<moderator: delete advertising>
kouts86 wrote:Hi AllI am interested in your thoughts with the new home and land packages in Melbourne. I have been looking in Morwell and Warrnambool as well as Sunbury as it is slightly closer to the CBD. My intention is to ensure it is CF+ but as I am an out of state buyer I would like local experience and knowledge. The Governement is giving 20k to new homes and 26k to New homes in regional Melbourne.
What are your thoughts on both regional and metro?
Rental Returns aren’t so bad, from what I have seen in all 3 suburbs.
Looking Forward to Your Thoughts
Pete
Umm you planning to live in the home and is it your first property purchase? The government is giving FIRST HOME OWNERS who live in the house the grant not investors.
Re sunbury there are currently 96 houses available for rent (according to realestate.com.au within the suburb with plenty of these houses being brand new! )
We have our family home in Caroline Springs because when we decided to get our PPOR 10 years ago the land was cheap and the facilities planned were fantastic and we got to build what we wanted. Having said that I would not buy an investment property here. Like sunbury and a lot of new estates there are plenty of houses on the market for rent. Caroline Springs has over 100 houses available for rent right now!
Your CF+ calculations assume you will find a renter on day one and it will never be without a tenant! With another 96 vacant properties for rent that probably wont happen without reducing the rent to below market which then might not make it CF+
If you want CF+ forget Victoria because you wont find it. Seems QLD and to some extent Tasmania are the main areas offering CF+ potential investment but these areas are actually having negative Capital Gain at the moment as well!
The Govt grant may cover the stamp duty & other costs but if the location is not attractive there won't be much of capital growth and a small cash flow positive investment can become a break-even capital investment if you can't find tenants quickly as noted above by Jadamo76 (also see properties for rent in Point Cook – which was a hot area for investors several years ago). And if this is the case, why bother buying? And my friend, if you don't know the area well, why would you invest there – don't you think it will be more or so like gambling your money? leave your money in the bank until such time you have found a place you want to invest in in your neighbourhood. Believe me I have seen so many interstate people buying properties in Victoria with a hope that their money will grew – never happened as the strategy only sounded great on a piece of paper.
If you look at Sunbury there is nothing but vacant land between there and Ballarat. If you want to throw away your money buy there. Mining areas are much better but will cost a lot more. I would look at inner city Brisbane as well as it is undervalued at present.
Nigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
anandd wrote:see properties for rent in Point Cook – which was a hot area for investors several years agoBecause it was being heavily (& 'successfully') marketed by organisations to investors.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
