Hi Everyone,
I have bought few properties in west side of Melbourne, Planning to buy one house in west footscray or footscray. Could any one tell me little bit about that area.
1) Is it a good growth area.
2) any new developtments there.
3) Would new generation people want to live in footscray or west footscray.Or any other thought on this area.
Thank you
Hari Yellina.Hari Yellina
Email MeKeep Investing - Grow while Resting.
Hi Hari,
I am a huge fan of Footscray/West Footscray having purchased 7 properties in the area.
Current median sales price in the area is $477,500.
In 2007 prices grew by 22.6% and in 2008 prices appreciated 10% so there has been a lot of growth recently.
Also, 50% of all households in Footscray are renters so it's pretty good for investors.
I know a lot of agents in the area too if you are interested in any introductions! Any more questions don't hesitate to contact me.
Hi Hany Your thoughts on West Footscray / Footscray are interesting. Just wondering what your thoughts are on Braybrook in regards to investing in. Cheers DWG.
Braybrook/Maidstone has been given a fairly bad rep for crime etc in recent times, but I would suggest it would depend on whether you are north or south of Ballarat Rd
Of the two I would prefer Maidstone (north of Ballarat Rd) given the closer proximity to Highpoint and Maribyrnong.
There is a lot of new development going on in the area, for instance on Barkly St, West Footscray you have Bansbury Village being developed by Cedar Woods, and on Hampstead Rd Maidstone you have Willow Park developed by JMC and also an AV Jennings development.
If interested in any of these an old university mate of mine is the development manager at Cedar Woods and I have relationships with the other developers too if you want to go direct rather than through an agent.
Hi Yellina,
The inner west is substantially undervalued, especially Seddon, West Footscray and Footscray given the close proximity to the city.
The area has good infrastructure in place and is continually improving, for example, the Footscray urban development plan (Footscray is a Principle Activity Cetre) and the state governments plans to extend the rail infrustructure (Footscray to Caulfield underground rail link).
To answer your questions:
1. Absolutely – check the REIV site for median price history for the last 5 years to verify this
2. Yes, as mentioned above and in Hany's post
3. Given the close proximity to the city and especially docklands (7 mins on Footscray Rd) the area is attracting young professionals. This will increase further once Docklands develops (ANZ headquarters is under developement and Habour Village is now open). NAB headquarters are at Docklands also. These developements will have a flow one effect on the Inner West in terms of professionals wanting to live closer to work and having an inner city lifestyle.Cheers
KrisWhile living close to the city in the west is appealling to many people, there are still many negatives on that side of town.
For that reason, i think that prices will only grow to a certain level, once people reach that level, many head for other areas, limiting price growth.
I don't think you will ever see Footscray and, say Richmond with similar median house prices.
Units4me, you stated:
"….For that reason, i think that prices will only grow to a certain level, once people reach that level, many head for other areas, limiting price growth
Do you suggest that the above statement only applies to suburbs in the inner west?
If you have looked at recent median prices you would have noticed that most of the suburbs "on the other side of town" (inner east) have declined by hundreds of thousands of dollars – eg Kew down 400K from Mar08 – Sep08, Camberwell down 200k from Mar08 – Sep08 and even Richmond has decreased around 10%. I agree that the mentioned figures are coming off a high base, however they are still substantial in percentage terms also.
In addiiton from an investment point of view it is evident that most of the suburbs in the inner east are overpriced and therefore will require a substantial outlay to get into the market. Unfortunately, as many have missed out on the substantial captial growth that occured 1-2 years ago, subsequently the numbers in the inner east often do not stack up.
Based on the above I firmly believe as investors its important to look for emerging suburbs that have sound fundamentals and strong growth prospects over the long term.
So then which part of Melbourne will we see boom next…
It always comes back to supply and demand. You might think that the inner east is over priced simply because it is a lot more expensive than the inner west, but by that logic, someone from say Moe could look at the inner west and say it is way over priced compared to Moe. Will Moe catch up to the prices in the inner west?
I still think that people will only pay up to a certain amount in the west, limiting price growth. Like I said before, too many negatives which could send prices either way.
As for which part of Melbourne will boom next, i'm unsure. But i do know that Melbourne prices have shot to unrealistic levels in the last few years and we are now seeing a major correction. It was always gonna happen, like it or not, and it will continue throughout all of Melbourne, east and west.
Well guys,
just reading through this topic and it appears that Unit4me was quite wrong.
Since the post, prices have continued to soar… to record levels.
Starting to flatten out now, however still a very good market to sell in.
Especially in the west, namely maidstone.It tends to be the case that property goes up in value, relative to its current value. Let's say a 2br place in Footscray is currently worth say, $450k, and a similar property in Richmond is say, $600k. In a year they'd be say, $495k and $660k respectively. Why on earth would you expect that Footscray would become equal in price to Richmond, and that if it doesn't it is a poor investment suburb? All that matters is a property's performance relative to its own current value. And this is driven by all the usual factors – infrastructure, proximity to employment, unis, hospitals etc etc.
Just my 10c worth…
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Have to say I lived in West Footscray (yeah I have lived in some real winners ;P) and it is a hole with nothing there but every type of industry. It is pleasant to walk around the wattyl refinery of an evening and to know that just round the corner is the oil refinery and the Pampas factory.
But………………………………..proximity to the city and jobs will keep demand there. Eventually industry will move further out. I lived there a couple years ago and ran screaming for the other side of town. I worked in Sunshine at the time and wouldn't hesitate to buy there as it has a bit more going on and a bit less fumes. Just my opinion.
D
DWolfe | www.homestagers.com.au
http://www.homestagers.com.au
Email MeDear All,
My name is Hari Yellina. Thank you all for the post. I have purchased a 5 bedroom house in West footscray in 2009. It grew 25%.
Even though I want to buy a house in Richmond, I am unable to afford at the moment. It has been rented for last 3.5 years not a problem. Being a 60 year old house it needs some love and attention.
This is one of the best decisions I have made. Lot of development is going on and we are expecting more growth. The rental demand for this property so high. It is always tenanted no matter what.
I will post again in 2015 and see if if has grown up in Value.
Thank you
Hari Yellina.
Hari Yellina
Email MeKeep Investing - Grow while Resting.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
