I just want to get general consensus on Point Cook, I am looking to buy another investment property around Innisfail Estate. around Astley Cresent.
What is the vacancy rate at the moment?
How expensive is the area?
Is it worth it to go there now or has the boat sailed away?
What is the demography? (tenants or owner occupier?)
if the place in Inisfail is still watertight, it’ll be in high demand.
Hi Igino,
I understand a lot of marketing companies sold a lot of properties to investors in the Point Cook and surrounding areas. The sales were so out of proportion the mortgage insurers would not provide LMI to loans over 80% in the area as recently as 15 months or so ago as they felt over-exposed.
I do know rents in the general area have flat lined over the last couple of years and there can be extended periods of vacancy between tenants.
Your initial comments seem to suggest you already have a property in the general area.
Time to diversify I think.
Hi Derek,
Thanks for the comment….80% LMI cap is news to me (Is this with the big four banks?).
I am holding on one property in Hoppers Crossing and the market seems to pick up well in the last two years.I am ready to add another to the portfolio, but not really sure where in Melbourne to invest it. I cap myself at 400k so I don't over exposed myself. Initially I was interested to Brisbane and Melbourne. After the flood, I prefer to just focus it to Melbourne for now. Is there anywhere in Melbourne where a decent return and growth still exist?
Thanks.
HI Igino,
Was with the big four – I understand the limitations are still (as at end of 2010) in place.
I don't live in Melbourne so I am not across all suburbs.
For me you need to ask yourself the question why Melbourne again?
For what it is worth I suspect Melbourne (in general terms) has run its race for a while, especially given the good performances over the past couple of years. Don't be misled into thinking Hoppers Crossing was a standout when pretty much the whole Melb market moved to varying degrees. The question to ask is can it keep going?
For example Perth in 2006 was going gang busters and many property investors did extremely well. At the same time there were many people who entered the market too late and arrived after the horse had bolted. Some of these people are still hurting – particularly those who speculated and bought sub-dividable blocks but can not get finance at the moment.
If you look at other major cities over the past 10 yrs they have each had a 'pretty good' time at various times. In pretty much every instance the good times were followed by slow times. My scratchy crystal ball tells me the same will happen for Melbourne this time around.
Don't be afraid to look further afield – technology today makes going further away from 'home' a little easier than it was. Certainly due diligence is still required but it can be done.
igino wrote:I just want to get general consensus on Point Cook, I am looking to buy another investment property around Innisfail Estate. around Astley Cresent.What is the vacancy rate at the moment?
How expensive is the area?
Is it worth it to go there now or has the boat sailed away?
What is the demography? (tenants or owner occupier?)
The median house price in Point Cook as an area has gone up a bit in the last few years and now sits at $465k. The Domain suburb profile provides a graph of this: http://www.domain.com.au/public/suburbprofile.aspx?mode=newdev&suburb=Point%20Cook&postcode=3030
At the 2006 census, the suburb was 80% owner occupier, 20% rentals, which as someone who lives in the suburb it sounds about right. a few of your questions can be answered by getting a free suburb profile at myrpdata.com.
Also Point Cook falls under the Wyndham – South (also includes Werribee South) area on the ABS website. The area profile is available at the following: http://www.abs.gov.au/ausstats/[email protected]/lookup/205207264Main+Features12005-2009
In my opinion the area is still going ahead, and growing fast. New train station at Williams Landing in the next few years. The new about to be constructed Wyndham Harbour Marina just down the road should be beneficial to the area too.
Don't go there! My investment property is right in the heart of PC and it took me 2-months to lease and then I had to drop my rent significantly. <moderator: delete language> growth is good so only go there if you can afford the shortfall.
The glut of investment properties from the big marketeers has significantly affected the whol region including Truganina, Laverton and right through to Wyndham Vale. Right now I reckon if you have the cohoonas then Lara is the right place to be. Prices well sub 400k and yields great and Mr Fox buying up locally which is going to drive employment etc…
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