Hi guys,
Currently looking at some new units in Carrum Downs, they are being built, due for completion early next year (available to buy off plan), great finishes, good location and from the number crunching that I’ve been doing, looks like some of them could be casfhlow positive after depreciation. I know that over the past 5 years the area has had 154% capital growth, wondering if anyone else is investing in the area.
I’ve put together an evaluation pack on these (something I do for all deals I evaluate) which gives details about the area, number crunching, etc and it all looks pretty good, just thought I’d see what others thought about the area out of curiosity.
Happy to chat if anyone else is looking in the area.
D.
Hi, Carrum Downs has definitely had fantastic capital growth over the past five years or so. I live in Chelsea Heights (about 10 minutes from Carrum Downs) The rent returns look OK for the area, but I have my doubts about future capital growth. The prices definitely have stagnated their in the last 2 years or so. I have two groups of friends who bought there in 2003 and have added $0 from the day they purchased. On the flip side, if it is positive cashflow with depreciation benefits. You are already in front.
I suppose that Carrum has leveled out with most of Melbourne after the big peak, the benefit that I see with the suburb is the water, they aren’t making anymore ocean.
Thanks for the feedback, definitely thinking about going ahead with these, there are quite a few units in the complex that are available, I can’t buy them all though. As I said, I’ve put together an info pack on these, so if anyone else is keen on having a look, more than happy to share my investigations with you.
D.
G’day Chris,
Just on your comment on cap growth, the Herald Sun 8/12/2006 pg 21 states that Carrum Downs has had a capital growth shift of 40.3% growth over the last quarter. Looks like your friends may have bought during the level out and its back off again.
Dave.
dear D
I am interested
if you can call me ph 97966888/ mobile 0405470994dr zaman
I live near that area (not right now – I’m in L.A) and know it quite well.
Carrum Downs is in the ‘corridor’ between Frankston and Dandenong, and has exploded in size and value over the last 3-5 years. Buying there right now is a bit ‘missed the boat’ on capital growth I’m afraid.
Long term will be good, but I don’t think you will see a lot of growth for about another 3-5 years. There are a lot of Jennings style ‘cookie cutter’ houses popping up.
As well as that, the rent returns haven’t kept pace with the cap growth so the returns aren’t too attractive.
Maybe a commercial property?
By the way; how many beds/baths are the units, how many sq/m for building and land, car spaces/garage and what’s the price?Cheers,
Marc.
[email protected]Interesting to hear LA, some valid points. Also interesting to read that his friends bought there in 2003 and have had no cap growth, but over the past quarter the area has grown by 40% or so.
The units I’m looking at have quite a good rental return, but horses for courses, unfortunately no one has a crystal ball.
I’ll email you through the info pack that I have if you’re interested and you can see all the details of the properties, a lot to re-type [thumbsup2]
Thanks for your feedback.
Dave.
Dave,
I would definitely be interested in seeing the info pack to make a better decisiion and give better guidance. The 40% sounds like huge growth, but I like LA thought you may have missed the boat. Please email through to [email protected] or call me if you want to discuss further 0432 482 512[biggrin]
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