Hi,
I came across this article: http://www.parliament.vic.gov.au/images/stories/committees/edic/local_economic_initiatives/subs/31_-_Melton_Shire_Council_Redacted.pdf
It seems that the area is struggling with unemployment. 3-3.7 jobs for one worker. The shire is concerned, and wrote a letter to parliament. What do you think of the area? It is in the growth corridor. Is anything going to be changing for the better?
Thanks
Wouldn’t touch it with a 10ft pole. Can’t see any capital growth in the near future with so much land available. Bacchus marsh is doing so much better and that’s another 20 min further out.
I could not agree more with Joe. This is a first home buyer area that is more likely to fall in value than go up. Especially with many of the first home buyer areas now gone.
If you are going to buy investments cash flow is important but the only way a property increases in value is capital growth. The stronger the growth the better the long term investment.
If you were going to buy a two properties at $400,000 and all you wanted to do was keep them for 20 years. One property grows at 5% and the other at 10% compounding the difference works out around $80,000 for each and every year that you owned the property. So why would be buy a property with little or no growth when you can target at 7-10%
Think carefully before you buy a bad investment can hold you back a long time.
Nigel Kibel | Property Know How
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Thank you for the comments. I do understand the maths. I need your assessment of the area. I am looking at a property development in Brookfield, called Veneziane.com.au; it would be for long term settlement about 4-5 years from now.
I would like to know what people think of Melton, Brookfield area in about 5 years from now?
thanks in advance.
STAY AWAY….Good luck
Settlement in 4 to 5 years? May as well put your money in the toaster and burn It. There will be no improvement within 5 years.
@joe, can you elaborate why you think that is the case? The area is earmarked as a growth area from population point of view.
what's stopping employment being created in the Melton shire in the medium term? What are the "reasons"?
The suburb is an extension of Melton south. I’m there every week and it is more suited for first home buyers wanting cheap homes. There is so much land around they will be forever opening new estates. A mate lives theres, his place been on the market for a year now can’t sell.
For now melton is in the middle of no where. Give it 20 years and it will be some where up there. I’d put my money in werribee, Laverton, etc. Same price, closer to cbd and will see more growth before Melton sees any.
To me there are more factors in buying into a suburb then just employment.
Thanks to everyone. So no-one thinks that the Toolern Precinct going to uplift the area?
Hi,
I have sold allot of real estate in Melton for a number of years (Not any more though), Melton is a area I wouldn’t look at for capital growth, sub division or even passive income.
What are my reasons?
• Allot of land available – more than enough
• So many areas being developed around Melton – Allot of house and land packages available with major builders
• Melton only caters for two markets, 1) First home buyers and 2) allot of immigrants are being pushed into Melton
• High unemployment rate
• High crime rate
But one of the most important things is this, Melton shire is running out of money big time, they had a population boom a few years ago and basically blew allot of the money on infrastructure etc, Also allot of companies are parking their business in areas such as Derrimut. Melton is pretty far from the CBD too…
Hope this helps.
Jpcashflow | JP Financial Group
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Thank you @johann. Really appreciate the insight into the weaknesses of the area. So, I guess that was the shire's letter to the parliament to lobby for awareness and of course extra funding.
So, you are not even favouring the area even in 5+ years?
Not at all!!! Melton shire council are not looking good, a new train station was meant to be built in Caroline Springs when it was first being developed and once all the lots got sold and houses where built suddenly Melton pulled out and said no station.
Jpcashflow | JP Financial Group
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Melton council was voted one of the worse last week. They have no heart.
@johann. stats on crime in Melton LGA…. http://myboot.com.au/3337/Melton/graphic-chart/victoria-crime-statistic.aspx
Bought an IP in Melton South in 2008 for $200k, now worth $260 so say by the REA. The people who made money were the ones who bought at around $160k and sold quickly for around $220k a couple of years later. Agree it is not a worthwhile investment, will be selling early next year when my loan gets off fixed rate (another mistake i made).
Will make a very small profit, but will definitely get out and invest elsewhere.
As far as the area goes, really down to earth people who live there.
By the time it gets good growth my kids will be retiring, and we don't have any yet!!
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