Where to buy, the west or the east(MEL)?

Viewing 6 posts - 1 through 6 (of 6 total)

mishier395
Participant
@mishier395
Join Date: 2011
Post Count: 3
June 21, 2011 - 12:59 am
Hi all,
I am new to this forum and would like to get advice on where to buy my first property. I am single, not debt, currently have full time job of 80k/y income. I have saving of 35k in bank at the moment and hopefully this will reach 40k in another 2 months. My budget is up to 400k if this is not too risky for my situation.
I have been looking around in Melbourne for a while but hardly decide where to buy. Considering this is the first property, I would like to buy with cautions. There are two options for me at the moment. The first is to buy a cheaper house in out western suburbs like Hoppers Crossing or Werribee at around 320-330k, and rent it out for $290-300/w. I don't expect much capital gain on this kind of property, but it will be easier for me to repay quickly. The other choice is to buy in out eastern suburbs, like Bayswater or Boronia at around 400k. I prefer bigger block of land and older house that I can do sub-division in the future.
Any suggestion?
regards,
Mishier
christianb
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@christianb
Join Date: 2009
Post Count: 386
June 21, 2011 - 1:35 am
Hi Mishier,
There are plenty of places to look, but a few fundamentals never go "out of fashion".
1. Proximity to public transport
2. Distance to the CBD
3. Proximity to shops, schools and other amenities
And in you case, if you are looking to subdivide later, I would add zoning and overlays.
With all that in mind, I would suggest West Heidelberg, Footscray and Newport offer some value.
From the planning applications we have been handling there seems to be good sized land down Chelsea way.
Best wishes with your search.
mishier395
Participant
@mishier395
Join Date: 2011
Post Count: 3
June 21, 2011 - 4:04 am
christianb wrote:
Hi Mishier,
There are plenty of places to look, but a few fundamentals never go "out of fashion".
Proximity to public transport
Distance to the CBD
Proximity to shops, schools and other amenities
And in you case, if you are looking to subdivide later, I would add zoning and overlays.
With all that in mind, I would suggest West Heidelberg, Footscray and Newport offer some value.
From the planning applications we have been handling there seems to be good sized land down Chelsea way.
Best wishes with your search.
Hi Chris,
Thanks for your quick response. I have never looked into those areas you mentioned. But I do know some investors buying in Heidelbery West these days. Will have a look.
regards,
Mishier
fredo_4305
Participant
@fredo_4305
Join Date: 2009
Post Count: 336
June 21, 2011 - 5:09 am
What about a unit closer to the city?
mishier395
Participant
@mishier395
Join Date: 2011
Post Count: 3
June 21, 2011 - 6:20 am
fredo_4305 wrote:
What about a unit closer to the city?
Hi fredo,
Thanks for your suggestion. All I worry about unit is the uncertainty of capital gain. Do you recommend any area good for units hunting?
regards,
Mishier
imaginary_number
Member
@imaginary_number
Join Date: 2011
Post Count: 3
June 23, 2011 - 11:48 am
Christian is on the money for the suburbs with good potential. I think $400k would be at the very bottom of what you’d pay for a house.
If you are going to consider units, low $400s will give you a lot more options. I think the opportunities here are increasing as the market has slowed for two bedroom apartments around that price – have a look at auction results. Take a look around Windsor, Prahran, St Kilda – good options there for some solid, larger apartments in small blocks with good capital growth potential in the future. And of course are easily rented out.