Hi everyone,
What do people think of investing in Dandenong, Dandenong North or Dandenong South. These suburbs had a bad reputation earlier but have shown steady long term growth of around 10% pa.
Also, VicUrban is doing a major development there (just South of the train line).
Is there potential in the area for both rent and further capital growth. I have spoken to some people who say they will be reluctant to buy in Dandenong but the statistics tell otherwise (I mean 10% growth pa is not bad).
Your views will be appreciated.
Thanks in anticipation
Sanjiv
*******“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
With the steady sprawl of Melb there is no question that D’nong – “Dandethong” as I call it, will continue to go up in value.
How much and how soon – no one knows, but it is cheaper than most areas.
The problem is; can you shoulder the burden of neg cashflow and the odd loser tenant until the growth occurs?With recent interest rate rises shutting out first home buyers even more, and current poor rent returns stopping investors from artificially pushing up the values, I can’t see a lot of cap growth happening there for a while.
Cheers,
Marc.
[email protected]“we get sent lemons; it’s up to us to make lemonade”
Thanks,
The property I am considering is a subdivision opportunity with plans and permit to build a 2BR unit at the back. If I were to buy the property I am planning to sell the block at the rear with plans and permit and put that money into the house at the front. That should make the house cash flow positive.
Any thoughts?“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
That strategy works well almost everywhere as long as the purchase price is right and the rent returns are right for the area; it doesn’t need to be in Dandy.
Are you looking for a second opinion about your investment, the area, or both?
It sounds good – you could end up with a pos cashflow property AND long term cap growth. Gotta love it.Cheers,
Marc.
[email protected]“we get sent lemons; it’s up to us to make lemonade”
Hi Sanjiv,
Your strategy sounds good. I think the Dandenong area has been a little under priced in general the last few years, not too much though. I was looking in Eummemerang ( or however you spell it) not too long ago.
I think you need a property of reasonably good standard, close to public transport, etc in this area.
I agree that the standard of tennant may be an issue also.
best of luckSteve B
Hi, Sanjiv
I think the Dandenong area has some things going for it.
The Eastlink, state government marking it as a growth city as well as investing $50million a year for the next 20 yrs (read on the papers some time back).
My view is that not everyone actually wants to live near the CBD. Regional centres around the city actually replace the need to head down to the CBD ( I have not been down to the CBD in a few months already).
I believe it is possible to find the good ‘deal of the week’ anywhere. I live in Noble Park, and have come across deals for a strata-titled unit going for $190k renting @ $200-220 per wk (RE agent estimate), under 5 mins walk to the train station and under 10 mins to the local shopping strip. (Too bad I did not have the money to buy it then.)
All the best.
Daniel Lee [specs]
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