Having recently moved from Perth, I’m not very famililar with Melbourne, so I was wondering if there were any cheap suburbs ($200K or less) left in Melbourne that is still relatively close to the CBD & surrounds. I was hoping to buy an IP that we could renovate and sell. Any suggestions on what suburbs to focus on?
ThanksHampton Park area is reasonable for what you are looking for. You cant Pos gear the properties but my personal opinion is that it still is quite cheap and has good movement potential. But make sure you do your due dilligence!
Kevin
[email protected]Astute Property Investors
Starting out or want to maximise your portfolio?I have low cash down, instant equity, low mainternance investment properties! Just send me an email!mrsimba2
What’s your definition of “relatively close” to the CBD? I would interpret that as within 10km, say, and I think you’re pushing the proverbial uphill.
Plus you need to think about WHY a suburb is cheap. Usually there’s a very good reason! That doesn’t always mean things don’t change, of course, but I would suggest that instead of putting a cap on your price to choose a suburb, you might be better looking for a suburb that is relatively undervalued compared to its neighbours. You may well find that buying in the undervalued suburb gives you better returns in the long run than picking a cheap suburb.
Try getting the latest issue of Australian Property Investor, sit down and go through the list of median prices. Have a map of Melbourne in front of you and write the median prices on each suburb. You’ll soon get a good feel for the market in various sections of Melbourne, and can then start to work out whether a suburb is undervalued or cheap & possibly nasty.Keep smiling
Felicity
To clarify further, I am looking at suburbs that are approx 15 – 20kms out of the CBD as I know any closer would require double if not triple my budget.
mrsimba2,
Areas such as Glenroy, Dallas, Coolaroo, (some in) Thomastown, West Heidelberg; to name a few. They are all less than 20km from CBD. Be aware though, that some of these areas do have Ministry of Housing or ex MofH properties, except for Thomastown which has a large number of industrial sectors to it. They aren’t the most popular areas, so Capital Growth won’t be high, but rental returns are good for the money spent. You can often find a property for 200K or less (BUT IT IS GETTING SLIMMER).
Hope this helps,
Jo
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