Hi,
Just wondering if anyone has a rental property in Tarneit, Melbourne and what are your thoughts on the area as a long term investment potential.
Am thinking about purchasing an investment property there, but am concerned that there is an oversupply of rental properties in the area.
There is an oversupply. It is also a suburb that 6 months ago some banks were very iffy about.
Have you been for a drive out there?
yes… there is a lot of new houses coming up, howver it looks like there is also decent growth over the last few years as well. There is a planned expansion of the nearby Weribee plaza and Tarneit is due to receive a new train station in 2014.
I would not buy there. Many banks feel that there is an oversupply of rental properties there. What type of property were you looking at and how large was the block and what is the price?
Nigel Kibel | Property Know How
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It is a 4Br house, land size is approx 456m2. Asking price is from $340K to $360K
It will also depend on what you can afford. My view is that house and land do not get a lot of capital growth. However you are limited with what you can buy for the mid $300,000
Nigel Kibel | Property Know How
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I live very close to Tarneit and I wouldn't buy there. Basically, it is a big housing development, and while it is close to the plaza there are a lot of closer properties cheaper (OK older as well). Driving around I see a lot of 'for rent' signs on properties and they don't seem to be picked up too fast (mainly this is in hoppers crossing, but hoppers is much closer to train station, shops and schools). And the new housing estates just seem to keep multiplying, getting to the city for work is a nightmare…trains are always full and not on time and the freeway…forget it. I think that people move out here to buy, not to rent.
Not sure if this helps…and it is just my opinion….good luck with whatever you decide
dbliss
people spruiking caroline springs and west melton as "good" investments for rentals as well
thoughts?
i have a property in truganina that we bought 2 years ago off the plan. Rent is average, but the value of the house has grown by about $100k in the last 2 years (2 identical houses selling in the last 3 months in the same area). I guess we got in at the right time. I keep a note of the values in the area and they are definately on the improve. I guess as the population fills the demand will grow and the train station will make a big difference. In my opinion the prices are heaps better than the east side but people are still getting their heads around living in the west.
We will probably buy there again as being an interstater i was impressed with everything that area has going for it and we had no trouble renting our first property.
I settled on a property in the adjacent suburb of Wyndham Vale in Feb 2007. Purchase price was $237K. Current value $323K. As to why this area? – Well it was the very first IP that we brought and the price fitted our budget at the time. However, I also brought in this area as my research showed that i) there was a "right-of-way" set aside for the new regional railway project, ii) there is also land set aside for a new ring road project, iii) infrastructure is overall being expanded (shopping centres, schools, etc) and iv) there is an overall shortage of housing.
Reading some of the other respondents above, I ask my self would I buy in this area again? Probably not as whilst the capital growth has been steady it has has been lower compared to other areas – as in suburbs closer to the capital city. Either way, I am not worried too much as rental return has been okay (5.3%) and I intend to hang onto this for the long term (10+ years).
Renting out has not been a problem. Although when we first brought this IP we could not obtain tenants for the first 3 months and that was a concern. Our approach to correct this was to gradually drop the asking rent until someone took it up. Since then, it has only been unoccupied for 2 days ( this was over a weekend).
Of some minor concern is the fact that there is the intention to release more land in this area which could impact the " supply-and-demand" paradigm with a subseqent impact on prices – perhaps only for a short period (1-2 years).
To answer your question, you can see our experience above. I suggest a core element is to differentaite your rental property from others – for example, mine has air-conditioning whilst those surrounding it do not. For the long term, I beleive it should be okay. If you want more certainty, then I would suggest buying closer to the capital cities – around less than 15 kilometres from the GPO – the closer the better. It is a compromise as such 'closer-in' property will generally have a higher purchase price.
hmm… thanks for the comments. Would you say the same thing about Werribee or is it a 'safer bet' as it is more established, eventhough it is one of the adjacent suburbs.
Yes, I would say the same about Werribee. However, I don't know if you are a first time investor! I was when I bought in Wyndham Vale and was 'gun-shy' in spending too much first up. Hindsight is wonderful however – should have taken the 'risk' and bought closer into the City.
Further on Werribee, it is a relatively old and established area – so when buying an IP you may want to weight up the pros and cons of buying an older home with associated maintenance needs versus a newer home with associated depreciation benefits.
Good Luck.
This will be my second IP (have 1 in Ballarat). We have managed to pay off our PPOR and currently have some funds available for another IP.
I have been looking at the west as it is generally more affordable and the area seems to be growing.
hi guys,
what are your peoples thoughts on ballarat?I've bought a few IPs in ballarat ALL +pve geared.
I buy under 200k and love it. Not the same appreciation as melbourne, but ho hum they are paying themselves off.
actually in ballarat tonight hoping to make an offer on another IP here tomorrow!
cheers
Hi,
I was in the same position when deciding to purchase an investment in Tarniet. I followed my gut feeling and secured a 3 year old 20sq 3 bedroom home on a 425m block in Tarniet Gardens for 350K within my budget.
I am looking at term long (10+ years) so i do hope that time will be on my side. Based on my own research new and upcoming infrastracture is on the cards; and in my case 2 schools and a shopping mall within my estate is definitely an advantage.
I have looked at the ballarat area. House and land packages seem so cheap there. I would eventually like to get a positive cash flow property. Is anyone aware of any future infrastructure plans?
Pwinne are your IPs old or newly built houses? Any recomendations on suburbs which are good for rentals. I don’t live in VIC and haven’t done alot of research on the areas.
We are newbies to the West having moved to Altona 3 yrs. We have one IP in Sunshine & one in Laverton bought for long term growth.
I am hoping to add a positive IP this year and have thought a bit about Tarniet but don’t have such a good feeling about it, maybe because it has grown fast and there isn’t a major draw card eg river, creek, transport, bush, University.
Ballarat I have always liked but don’t know the areas so well and Werribee I am being to look and will look into the new marine project.
If you want to buy into Wyndham Marina you had better be quick. I purchased in the first release. Releases 1 and 2 sold out very fast and the third and final release starts at the end of this month. It only has approx 240 blocks in total from all 3 releases, demand will be high when fully developed and very tightly held by those lucky enough to have bought in early.
Also Tarneit will have 3 rail stations in the next few years. (I also own in Tarneit).
Ive got an investment property in tarneit. Specifically Tarneit gardens. Been there bout 4 years. 4br house paid $230k for it, currently valued at $350 so capital growth has been good in the area. Do have alot of problems getting GOOD tenants had a lot of crap ones. The best tenants seem to be either single parents or those building in the area looking for a place to rent short term.
Had a lot of problems with young people from werribee renting it. You got to be very careful in that market. Honestly at 300k+ I would consider buying else where. Lots of hassles. I think capital growth over the next few years will be good thou.
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