hi all
i saw an ad promoting houses in Point Cook in Melbourne and was intrigued cos they look so cheap—a 4-bedder house with land size of 600 square meters costs only around $350000! of course i did a bit of research but still have very little knowledge about that area since i live in Sydney.
basically what i learned were: it’s 20 minutes drive from downtown; not too far from both airports; in the west so some ppl may not like it; developer offers rental guarantee between 4%–5%; will be completed in early 2007; and the most important thing is: compared to house price in Sydney, it does look very cheap!
so i’m just wondering if they are really cheap if you take into account its location…..? i guess there are quite a few Melbourne locals here. i’m looking to buy cheap properties in cities like Melbourne and Queensland with good capital gain potentials…
any feedback would be greatly appreciated,
AOPoint Cook, Victoria … It is also the location of RAAF Base Williams,
A lot of the houses are probably DHA houses
(Defence housing) May be worth seeing if any houses are available from the defence housing. Rentals owned by investors but managed by DHA for RAAF tenants. Smart investor this month has a small article on the conditions and pro’s and cons of DHA..Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
hi thanks for your comment.
actually i’m not seeking financial advice here. i’m not asking “should i buy or not?” i’m just asking to see if there’s anything negative about that area, anything that could be an instant turnoff to other buyers—i personally wouldn’t buy properties in Auburn, Macquarie field and Redfern in Sydney.
any other Melbourne locals here could point out one thing or two regarding that area?
thanks a lot in advance
aoI live in Dromana (have been in L.A for 15 months) on the other side of the bay from Point Cook, but one of my mates used to live there.
The area is in the growth corridor between the city and Geelong; a satellite city about 1 hour from Melb. A lot of people live in Geelong and commute to Melb. Point Cook is on the way.
Point Cook I reckon will be an ongoing growth area similar to Carrum Downs on the other side, but there is a lot of development around that side of the city, so I don’t think the prices will go up anytime soon ( a bit of a glut). There used to be bugger-all at Point Cook apart from the RAAF base, but there was nothing in Carrum Downs 20 years ago either.As for houses being ADVERTISED for $350k, that doesn’t sound that cheap to me. It may be cheap compared to other parts of Melb, but that side of Melb is going through a development boom and a lot of new, inexpensive estates are popping up.
Was the ad through Harvard Securities or Banc Real Estate? If so, run a mile.And you have to ask youself; if the properties are being advertised, and there is also a rental guarantee, then how much of the purchase price is funding for the ads and the rental guarantee?
If the rental guarantee is for 2 years @ 5%, then they are probably overpriced by $35k – maybe even more to cover the expensive advertising and sales commissions.I would say, with my limited knowledge of the area, and without even seeing these joints that they are overpriced, the rental guarantee is a joke and don’t buy one unless you can get it for about $290k not a cent more. Even then you wouldn’t be getting it cheap; you would be paying market value.
I think the area is good for long term growth, but check out the sale prices in the area for an EXISTING 4 bedder first, and ask all the agents what the rental returns are lately.
Cheers,
Marc.
[email protected]AO,
Hi to all. This is my first post and the subject you are discussing is very topical for myself and area at the moment. I am from the sunny Qld state and the town in this situation is Laidley. In recent REIQ reports this area is one of the fastest growing in Australia. The town is quite small (4000) shire 14000. Laidley is 1 hr from the Brisbane CBD and 1-1/4 hours to the Gold Coast. I work for GJ Gardner Homes as a sales consultant and my brother owns the franchise. GJ Gardner homes are a quality product and well respected Australia and World wide.
I have at our disposal 30 blocks of land ranging from 500 – 860 sq mtrs and priced from $75,000 to $95,000. We are promoting the Estate with house and land packages and the deals are quite exceptional. All blocks have underground power, town water, sewerage and are all level blocks. They are all in the centre of town, 600 mtrs from the CBD, opposite the state primary school and has a medical centre and child care centre next door.
The deals GJ Gardner are offering are as follows;
First in best dressed with the selection of block of land. The house and block of land package are as follows;
(1) ‘The Kellie’ – 127.95 sq mtrs – $226,850 (inc GST) – 3 bedroom, 2 way bathroom, single garage, brick veneer, tiled roof, driveway, path, floor coverings (tiles and carpets), clothes line, brick letterbox, in other words just move straight in for this price.(2) ‘ The Emily’ – 153.9 sq mtrs – $255,150 (inc GST) – 4 bedroom, 2 bathrooms, single garage, brick veneer, tiled roof, etc as above.
(3) ‘ The Jackie’ – 219 sq mtrs – $292,750 (inc GST) – 4 bedroom, 2 bathrooms, double garage, brick veneer, tiled roof, patio, open living/dining etc.
(4) ‘The Magellan’ – 220 sq mtrs – $298,120 (inc GST) – 3 bedrooms, theatre room, office, open living/dining, double garage, etc.
I am sure you will all agree these are great opportunities for the investor and there are no hidden costs involved.
Should you wish to contact me do so on the following no’s or this forum.
07/32818678 – 0431453700
Cheers,
Bisho
Hi ao,
You have to be careful when you read developers advertisement like that. $350k house in Point Cook is not very cheap. The 20 minute travel to city is non peak hour travel time. You would use West Gate bridge to travel to Melbourne city and its like a parking in peak times. I think the “real” travel time is anywhere from 40-60 minutes.
Also, you cannot just simply compare the prices of houses in Point Cook with that of Sydney. They are two different markets. In fact, $350k house is few % higher than the Melbourne median price as well.
Point Cook and some other suburbs around it (Tarneit, Hoppers Crossing, etc) are on Victoria’s growth corridor. There is lot of development happening and with the slow down in the property market, there has been (to some extent) an oversupply of land and properties in the area. Not long time back, I saw ads in the newspaper where a land developer was giving a free Barina (I think) with the purchase of a block.
That said, Point Cook itself is a nice area. I have gone there couple of times. And I don’t believe the RAAF base is operational anymore. I am not convinced about long term rental demand in the area. The new estates like Point Cook are more owner-occupied.
Hope this helps!
SanjivHi Bisho,
this is a discussion forum, not a sales campaign. Most people on this forum understand that land packages are seldom the way to get a good deal. Somebody else has already made the profit in the project.
I do not mind if Richard offers his service, when somebody asks specifically for a good MB. But he has already posted over 2000 posts in the last 3.5 years helping countless people in the process. Maybe it is a smart advertising strategy of his. But he has invested many, many hours answering questions. If by doing that he convinces others that he knows what he is talking about and attracts their business, GOOD ON HIM.
So before you start advertising your product, which is probably not what most of us are looking for, start by showing the rest of us that you have any idea what we want and how you can help us other than just selling your stupid product.
Just my two cents, I think the south western corridor has great potential. Maybe not necessarily Point Cook though with they’re overpriced new houses but other existing pocket suburbs in and around there such as Altona Meadows, Hoppers Crossing, Laverton, Werribee.
And I can vouch that it is only a 20 min drive to the CBD via the West Gate Freeway most times of the day. As for during peak hour, well almost any middle/outer ring suburb will take 40-60 minutes to get to the city -not just the west. Try the Monash – parking lot from 8am -9am, Eastern, Tulla, – all the same when its peak hour. But any other time its a dream run. I bought a 3 bedder house for around 200k a year ago, 10 minute walk to a Zone 1 train station. Where else can you get that in Melbourne? rents well, 20-30 minute train ride to the cbd depending if you get an express train or not. The raaf bases are both very quiet dormant bases these days with little training going on there so not sure how you’d go with defence housing.
Cheers
ShereeI am pleased to announce that GJ Gardner Homes SA has done the right thing and agreed to replace my floor tiles. I am now satisfied that GJ Gardner Homes South Australia are the builders that listen and I am now proof of that.
Went for a drive to Sanctury Lake the other night and noticed there was TONS of houses for sale??? WHat on earth is with that?
Hi blogs,
Could be due to people buying overpriced houses 1-2 years back and now finding it difficult to make the repayments.“There is no passion to be found playing small – in settling for a life that is less than the one you are capable of living.†– Nelson Mandela
Hi Guys,
My parents just had a similar situation. They have bought their first IP property but when they went to the bank for a loan the bank valued the house $40,000 less than they are paying for it. Their reasoning being that the property is in a new area and their are no similar houses to compare prices. I feel very nervous for my parents at the moment and they signed the papers on Wednesday.
A couple of other questions: If you buy a house @ land package do you have to pay full stamp duty on the house and land or do you just pay stamp duty on the land? What if you buy some land and then build on it later, does this incur only stamp duty on the land?
Also, “bridgebuff” mentioned that people seldom buy land packages because someone else has already made the profit. If this is the case then why do people ever buy house & land packages??? Is their more negotiation on house & land packages as opposed to an old house? Also, wouldn’t you at least have the advantage of a new house that you get the maximum depreciation on the house plus you don’t pay stamp duty???
Can someone please explain the advantages of buying house & land packages over say a 5yr old house??????
Thanks
PaulI think what B.B means is that you will find that experienced investors won’t buy house and land packages.
Average people, first home buyers who are owner occupiers usually buy them.
Sometimes an experienced investor will buy a package, but it is usually at a good discount and they know the likely cap growth for the area will be good. the tax benefits are good too.The advantage of buying a 5 year old house over a package is that usually the 5 year old house is in amongst other houses that have been bought and sold within that period, thus there is a genuine price/value attached to it via past sales.
There is also still 35 years worth of building depreciation on the 5 year old house, so the tax advantages are nearly as good as the brand new package, but the price is as per the market forces, not the developer’s profit.
Stamp duty is usually charged on the completed product, thus you pay more for a completed package. If you buy “off the plan” you can save some stamp duty as the building is not there yet, so the S.D is calculated on the land value only.
But quite often the property is overpriced anyway, so you don’t really save any money “off the plan”.
Cheers,
Marc.
[email protected]“we get sent lemons; it’s up to us to make lemonade”
I wouldn’t feel right to comment on the price of the property your looking for as I’m still in the process of purchasing my first IP. However, I do live in Altona Meadows which is a suburb very close to Point Cook. I can tell you that within point cook, there will be another supermarket built as well as a cinema in the same complex.
Also, plans for a large Marina (Wyndham Cove) are on the cards in Werribee South (a few mintues drive towards to the bay) although this does not yet have final approval and so would not begin construction until at least late 2007. I imagine if this were to go ahead it would increase land value significantly. Atleast I’m hoping thats the case as I’m looking in the Laverton area for my first IP.
Apart from all that, there is still plenty of undeveloped land to the West between Point Cook and Werribee/Hoppers Crossing which I guess may stunt growth…..?I just finished building a house in point cook and am renting it out.Built for 300k now worth 350k and that is a 3 bed 1 study so 4 bedroom for 350k sounds right to me.There is still alot to come from this area so I would say it is a more long term thing.But there will be a mall with cinema and cafes being built and the beach aint far and melbourne’s best marina with the project being around 200 million to start soon.I also live in neighbouring suburb Altona Meadows.
Hi cassco,
Congrats on your point cook investment. Care to share your rental return for your unit? And which development you bought?Thanks.
Originally posted by cassco:I just finished building a house in point cook and am renting it out.Built for 300k now worth 350k and that is a 3 bed 1 study so 4 bedroom for 350k sounds right to me.There is still alot to come from this area so I would say it is a more long term thing.But there will be a mall with cinema and cafes being built and the beach aint far and melbourne’s best marina with the project being around 200 million to start soon.I also live in neighbouring suburb Altona Meadows.
The RAAF Base is still in use. However it has scaled down a lot since the 80’s. RAAF base Point Cook is where the Airforce train their Officers. Much like Duntroon in Canberra. So they will always use that Base. Also RAAF Base Point Cook is the oldest Airforce base in Australia and will continue to be used. They have closed RAAF Base Laverton and that will soon be opened for development. I look at it this way and Brighton and Point Cook are approx the same distance from the city, only they are seperated by the bay. So who knows where the prices will be in 20-30 years. I do think that 350K is a high compared to places near and around Point Cook. But dont quote me……[biggrin]
News Dated 14th Nov 2008 Homebuyers wait at Point Cook
Quoted: There are lots priced from $180 - $265k ranging from 400 to 693 sqm....
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- If you really know McDonald business, you better follow where they open up their new outlets...
News Dated 21st June 2010 Australia is one of the world's best property markets
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