Advice needed for first investment in Melbourne.

Be careful with the many ‘property mentors’ about, many are just Off The Plan sales shills who are doshing out low quality overpriced stock for developer payments.

If you feel like a professional assistance is required to start building your portfolio – it may be worth engaging the services of a buyers agent. They can be worth their weight alongside the rest of an effective property team (brokers, solicitor/conveyancer, accountant, property manager etc)

Hi there –

Welcome to the forum and I hope you can learn alot here before you take your first step to success.

I offer a mentoring service…. (nah only kidding – refer above for warnings)

Re mentoring – you just need someone to point you in the right direction – if you are in the SE you could look at certain suburbs that can provide growth for you. Perhaps something to buy now and develop later (Noble PArk/ Springvale) – or even our Ringwood way.

For a first time investor – would not recommend Off the plan apartments – too much risk. I love a town house, but in this hot market you need to choose the right suburb to provide a mix of capital growth and yield. Growth will be impacted by a number of factors including schools, infrastructure, capital upgrades, proximity to trains/ freeways. Would not recommend house and land for you.

First step – determine your strategy and borrowing power and take the excitement further with your first investment property.

Hope that helps!

To success, Ivan

Hi Tanelle,

Awesome it helped.

I have bought two development sites in the last 12 months in Noble Park – one within 500 m of Noble Park Station for $750 plus which will include 7 townhouses and another which we just had plans and permits approved for 5 t/h. I can tell you the obstacles are greater now than they used to be. Everyone will know that I love Noble Park (as an investment). You can get a 3bd townhouse in Noble Park/ Springvale sub $400k easy.

Ringwood is out of control – the chinese are heavily invested in development sites where 700sqm lots are going for $900k plus. Would not touch it.

Go a townhouse in the area for your price range – achieve rent for 4.75%+ and smell the roses. Capital growth has been strong due to the capital upgrades on the Dandenong train line ($2.5b) and Dandenong is also running hot.

To success, Ivan

Tarneit and those nearby areas are experiencing growth but also oversupply of land. Find a house you can subdivide close to transport, schools and shops. After planning approval do the mandatory works to get a title for the lot and flick it. Do one every two years and you could have some real cash in the bank. Or build the dual or triple occ and get two rental incomes instead of one and be cash positive. A townhouse or unit off the plan will take a while to see growth- unless its in the hot areas. The developer has taken his profit out and you have to wait. A recent study by RP Data ( I think) showed unit buyers in Melbourne were worse off as the growth was poor. Buy a home- it will appreciate. And find one you can subdivide and build one or more in the back, If the home is in good condition keep it as banks feel secure and then build behind. Getting approvals take tine and finding a good site which ticks the planning reg boxes is a skill.A good site analyst who delivers a permit is worth getting to know.