Investment in Melton

Hi Ajay

Welcome to the forums

There are parts of most towns that are fine and parts that are best avoided. The key is to not stumble into buying something that will hinder the progress of your investing.

Either way, while there are properties on the market in Melton for circa $250k, it is unrealistic to expect to find such a property which also happens to be CF+ and offer subdivision potential for this price-tag.

In order to not get caught up in a tangle of trying to find a property that features every property strategy going, try first deciding what the spend limit is (the bank will no doubt decide for you), how much you’re putting down in cash as a deposit (which will contribute towards determining the cash-flow position of the property) and from there decide what areas you can afford, and thereafter what “extras” you can get for your money. For instance, you might need to decide between cash-flow and big land.

Hope this helps :)

Hi Ajay

On those figures, a $250k property would need to be fetching $295 per week in rent to nudge its nose into CF+ terrain.

A $250k budget is a house in the outer ring Western suburbs of Melbourne, or a unit closer in (not all suburbs).

You are extremely unlikely to find something in Melbourne for that price that will also be CF+ and also offer development opportunity, and also growth potential. It might be necessary to focus on will be getting a sturdy property that will appeal to tenants.

Hi Ajay

Not sure you do for a living but I assume you don’t work for free.

Consequently why would you expect any Buyers Agent or Broker to do the same.

When you engage a Professional in any area of business you are paying for their expertise.

Why would you expect them to give you the goodies up front without any form of commitment.

In Qld we certainly wouldn’t even engage in conversation without 50% fee paid.

Appreciate you are a newbie investor and forum member but not sure why you would expect anyone else to do anything to the contrary.

Cheers

Yours in Finance
0-40 properties in a decade. Ask me how

Hey Richard,
That sounds quite harsh…. I had the impression that Ajay was simply conversing with another forum member (JacquiM).

I know Jacqui is a Buyers Agent, and I presume Ajay would have noticed her signature too. But in the context of a forum post and reply, Jacqui appeared to be providing a bit of guidance to a new member. As many on here do (including yourself, from time to time).

So, I am scratching my head over this from you:-

Not sure you do for a living but I assume you don’t work for free.
Consequently why would you expect any Buyers Agent or Broker to do the same.
When you engage a Professional in any area of business you are paying for their expertise.
Why would you expect them to give you the goodies up front without any form of commitment.

Now, if Ajay had showed up at Jacqui’s premises for an appointment, I would tend to agree with you – but he is simply putting questions to the forum for Pete’s sake !!

I don’t see that he has “engaged” Jacqui at all – and Jacqui (like any other forum member) is free to answer as little or as much as she feels is appropriate, given her occupation.

Benny

Hi Ajay,

I will anyways engage with property adviser at some point.

Yeah, getting a good team around you is a smart move. This seems like it is early days for you, but do be on the lookout for advisers to work with – you will want them in place before you make your first purchase.

Meanwhile, keep on reading, asking, and researching – as you learn more, the way forward should become apparent,

Benny

As I said earlier, I can’t help at all with Melbourne and surrounds – I’m Brissy based, and have only bought in this area.

Maybe look at listing your “must haves” to see if your purchase price can get those. As Jacqui mentioned, you won’t get all of them for $250k, so tell us what MUST be and what can drop off. Or look further out (e.g. regional towns) where you may be able to get ALL of those things for your price. Sometimes, our negotiations need to start with ourselves !! ;)

Benny