Hi, i am looking to purchase land and build for a principle place of residence in victoria and based on affordability. I am currently looking at suburbs such as the following,
1. Craigieburn
2. Wyndham Vale
3. TarneitCan people living in these suburbs or have investment properties give me some suggestions to any pros and cons of these areas or suggest some other suburbs similar in distance to Melbourne CBD? I'm looking at the 280 – 330K range.
Though i am looking for a principle place of residence, increased capital gains over time would be a concern as well. Thank you.
regards,
PatWhat you need to consider is can you afford $3 a litre for petrol to drive into the CBD for work. These new suburbs do not have good public transport so if you buy in them you have to assess the likely hood of petrol increasing and what effect that will also have on your neighbours. If all your neighbours are forced to sell all at the same time house values will drop.
I would say no way mate.
They are all unserviced by public transport, and as a result, the road and traffic problems are very bad. The majority of properties are highly debt laden, and over capitalised (too expensive house, on cheap land).
If we go into a recession (highly likely) alot of people in these areas will struggle to keep their job, or keep their small business afloat. At $3 a litre for petrol they will not be able to service the mortgage. There will be mass selling in these areas and they will return to their true value…
Land – $130,000 -$190,000. The houses wont fare so well…..
Some people would have spent $350,000 building, on a block they payed $250,000 for. They will struggle to get $400,000 for them.
There is strong industry growth (read: employment) in some areas of melbourne which also have cheap land available, and public transport.
Pat,
My first investment property I have brought is in Wyndham Vale and it has performed to a satisfactory level since its purchase in early 2006. I say this because we have got good tenants who pay on time, look after the place (last two inspections there has not been a carpet hair out of place) and happily absorb the rent increases.
The earlier comments you have had do have some valid aspects. The cost of fuel does look to have some minor impact in the decision making to purchase in this area as there is a lack of public transport. However, there is potential for a new rail link to be established between Sunshine and Werribee with land reserved for this rail link right-of-way. Hopefully, this will also entail the set-up of a nearby train station. This was recently announced (few months ago) in the Rod Eddington report on public transport.
Also, getting from Wyndham Vale to the city can be a pest during peak hour. The road through Werribee gets narrow and congested and acts as a bottleneck. However, there are plans to establish a dual carriageway through Wyndham Vale alongside the right-of-way for the Railway line to join up with the Princes freeway that will by pass the congested sections of Werribee.
As to when this actually occurs, its all up to the State Government. But, a ten year time from would appear be reasonable for this kind of stuff to actually occur.
Finally, Wyndham Vale is typically a low-socio-economic demographic. When the economy goes bad, people tend to move out of the inner-city with higher rents to a lower rent area – or move in with Mum and Dad!
Overall, you've got to do your research and satisfy yourself that it is a worthwhile area to invest in.
In two years, my investment property has grown in value 12% – which isn't much to get excited about but the only constant in change!!! Would I invest there again? Not right now as I looking elsewhere and I don't want to have all my eggs in the one basket. However, the area is a mortgage belt and the potential for our economy to slow may show some bargains as people lose their jobs
Best of luck.
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