Hi all, I am after some advise regarding the Cairnlea suburb in Victoria. We are currently investigating options of moving to another suburb near the Strathmore / Strathmore Heights area and surrounding suburbs such as Keilor East, Niddrie, Oak Park etc (Melbourne North west). The reason for the move is for school zoning as we really like some of the schools in that area. Currently we have an investment property in Hoppers Crossing and the family home in Cairnlea. We are definitely selling the hoppers crossing home, as that has been a mistake since day 1. Hind site is always a wonderful thing, but it was the wrong area to buy in and it didn’t help that we also had to spend thousands of dollars fixing the place up after it was trashed by the tenants. Anyway, the house is now quite nice, with some great tenants but capital growth has been poor in the area. As such, once we sell, we won’t be making much money from it, if any at all. But the Cairnlea home is the one we are unsure about. Its the family home which we had built new back in 2006 and has been valued at $580K. We paid $360K for the land and house back in 2006. So it has grown in value. In our plan, we were hoping to sell the Hoppers Crossing home and rent out the Cairnlea home and purchase another home in the areas that we would like to. Unfortunately, after speaking to a financial adviser, with the sale of only the Hoppers Crossing home, our loan amount from the bank is ok, but not great, for the areas we are looking in. If we sell both homes, then it becomes a little easier, assuming we can comfortably afford the monthly repayments of the larger loan. So after all that, I was hoping to get some ideas or advise on what people here think about Cairnlea as an investment suburb. Prices are slowly increasing and its 18kms out of the city. Is it worth keeping the Cairnlea property or should we just sell it?
Many thanks for the advise.
Cairnlea is one of those suburbs that benefited by what I would call the migrant shift from St Albans and Sunshine along with the northern suburbs of Sydenham etc. Basically the migrants from the late 70s, 80s and early 90s that became successful and wanted nicer homes moved out to these new estates.
At 580k (assuming 2 storey, 4×2) it’s only grown at just above inflation for the past 10y and will probably continue to do so if everything goes well. There will be no sudden jumps in prices for that area because of its proximity to the newer estates within 5km of it.
The demographics are mainly owner occupier so selling will probably be an easier proposition than renting, mainly to students that go to the nearby university. Considering that, I’m not sure if you’d experience a better renting outcome than what you experienced in Hoppers Crossing.
Overall as an IP location looking for yield (average to poor), or growth (poor) I would sell out if you could afford to.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
