Hey guys, I am currently living OS but looking at buying propertty in Victtoria.
I am looking for people opinions on buying a nice unit in Richmond/Elwood (mid $200’s) or buying in Sunshine/Dandenong (mod $100’s). The rentals for Sunshine/Dandenong seem like they would pay for the mortgage however Richmond/Elwood dont, however and I know you should not put emotion into the purchasing decision however Richmond/Elwood seem like a more secure area to buy.
Thanks for your advice.
Rob
from my perspective….richmond, for better capital grown long term. Dandy/suns for the CP+ if you can find them. However keep in mind we are coming out of a 2 year bubble in realestate and with the interest rates going up you may find the capital grown smoothing off for a while.
all the best
Jack[
]oh and by the way thee is an oversupply of units in the inner city Melb so be carefull if your after capital growth
regards
Jack
RobAde, do you have anyone on the ground here in melbourne who is property savvy? This would help. Whilst it might be easy to say Richmond/Elwood might have higher CG compared to a Sunshine/Dandenong. Or alterantively, Sunshine/Dandenong may have more neutrally or +ve greared propoerty, you need to pick the brains of sales agents & property managers in those specific areas. Understand those suburbs and adjoining ones. Attend some auctions to appreciate the pulse of the market. Don’t beleive the hype about property, the sky is not falling in. Ultimately, do your homework and then make your move.
Demographically these are significantly different areas. How did you choose these areas?Georgeisj, thanks for your info. I do have a few people on the ground in Melbourne. I shall press hard the sales agents etc once I come back to Melbourne.
I used to live in Melbourne, I like the areas of Richmond/Elwood and was thinking that perhaps Dandenong maybe a good place to buy due the rental yields, basically I am just throwing ideas in the air and seeing where they land, but ultimately will make a more informed decision once I am back.
Thanks
Rob
Rob,
I think Elwood is a good choice. It’s a more “established” area, whereas richmond is considered inner-city and has a large amount of units built there- too many. Having said that, richmond is certainly charming
Sunshine is certainly in a different “league” to richmond and dandening- if ya know what I mean. Depends on whether you want possible CG (elwood) or cashflow (sunshine)
kay henry
Kay Henry, yes Richmond is charming but I am trying to not get personal opinion in the way of a investing decision however being charming that can also bring in the renters (my opinion). I know sunshine is in a different league but perhaps dandenong is not in the same league as richmond/elwood but not as `bad’ as Sunshine.
I want CG but I also want a place I can rent out easily (not to worried about yield but vacancy rate).
Thanks
Rob
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