Best Property Type Choice for Future Capital Value Gain in 5+ Years Time (VIC South East)

• 

  mskeggs on 31/10/2016 - 12:59

  +2

  My suggestion is to choose the residence you would be happy to live in if there is little in the way of capital gains over the next 5 years.

  • 

    oliman on 31/10/2016 - 13:56

    +1

    Thanks for your advice, but actually my happiness revolves around financial gains :)

    We are down to earth and nothing really bothers us much in terms of residence type..

    • 

      railspider on 31/10/2016 - 14:33

      +1

      If you really find happiness in financial gains, I'd suggest you go stick your money in an index fund.

      The Aussie property market is probably not going to bring you any smiles over the next 5 years

    • 

      brotherfranciz on 31/10/2016 - 14:55

      +2

      my happiness revolves around financial gains :)

      I feel sorry for you.

      • 

        oliman on 31/10/2016 - 15:37

        +1

        Well I have my family/kids and old parents and my financial gains are aimed to help them.

        Is it still something you would feel sorry about?

      • 

        brotherfranciz on 31/10/2016 - 15:49

        @oliman:

        OK, so you're backtracking.

        What you 'meant' was that your happiness revolves around the happiness of your family, is that correct?

        Maybe you need a bigger house so the old parents can move in too, and then you can make sure they are happy every day!

      • 

        Skramit on 31/10/2016 - 15:50

        +2

        @oliman:

        Don't worry about the holier than thou nay-sayers. Money is important despite people saying happiness is everything. Both are important. I like your honesty :)

      • 

        oliman on 31/10/2016 - 15:51

        +1

        @brotherrfranciz:

        Parents are overseas and preffer to be there. I financially support them.

      • 

        oliman on 31/10/2016 - 15:51

        @Skramit:

        Thanks.

      • 

        brotherfranciz on 31/10/2016 - 15:56

        @Skramit:

        holier than thou nay-sayers

        LOL

        No one is saying money isn't important (please see my post below 30mins ago, I've given my advice how OP can make money, take it or leave it of course - it's just advice after all!). It's about where the person's priorities lie. If a person's mindset is always about making money, then the person is missing the point of life.

• 

  sane on 31/10/2016 - 13:32

  Well, given that in 1-2 years the apartment situation is expected to get silly, in 5 years we can expect it to have flowed on to the rest of the overpriced junk in the housing market. At best that means flat prices, more likely a falling back.

  Upshot, if I were you, is to get a 2 bed somewhere with a lot of space and look to enhance with either an extra bedroom, or something else, to push the price up.

• 

  Skramit on 31/10/2016 - 13:33

  There's no right or wrong answer to your question. It will mostly come down to the individual property, it's exact location, it's characteristics, fit and finish etc.

  I am under an impression that a 3/4 bedroom house is the best option if your goal is to get best out of capital gain in the value of the property in 5+ years of time.

  Probably because you're starting from a high starting price so % wise you will gain more over time, yes. But it doesn't make it the "best" option necessarily. As above there is so much more to consider than 2 or 3 or 4 bedrooms, inner or outer suburb.

• 

  QW3RTY on 31/10/2016 - 13:42

  We don't have any specific demands for an ideal house or its location

  Location is the most important factor. You need to sit down and review some market data in the areas you're interested in. "Established" suburbs with desirable infrastructure will have one bedroom townhouses selling at higher prices (and appreciating at higher rates) than "new housing communities" that lack these location characteristics. The decision of investing in a one, two or three bedroom house, unit or townhouse will then be the right question to ask once you have identified your desired suburb.

  Once you have your desired suburb, see what is available and then buy the best product you can afford.

  Pro-tips: If all products are new, have comparable accessibility to public infrastructure and are comparable in location, order of desirability is as follows:

  1. House
  2. Townhouse
  3. Units/Apartments
  • 

    mskeggs on 31/10/2016 - 13:44

    +1

    Which is another way of saying, land value drives appreciation, so the housing stock with a bigger land footprint, everything else being equal, will rise the most.
    But an inner city apartment might rise more than a country farm, for example.

    • 

      QW3RTY on 31/10/2016 - 13:52

      OP needs to bring it all the way back to demand and supply.

      Demand for residences will be higher as you approach central business districts. Supply is often limited by existing developments/development restrictions. As you move away from CBDs, supply of housing increases and (assuming a "general" demand inelasticity for dwellings) prices fall.

      Purchase the best quality asset in the best quality location for the best growth on investment.

• 

  brotherfranciz on 31/10/2016 - 15:27

  +1

  My advice would only be relevant to Victoria (as every State has different Planning regulations).

  My suggestion would be to buy a property larger than 600sqm within the Residential Growth Zone (RGZ) or General Residential Zone (GRZ). These properties would generally have bigger development potential, which you could develop yourself or sell to a developer. You could get a planning permit from Council to subdivide and then sell the property on (as it gives confidence and certainty to the developer, and you've already done the hard work for them).

  To find out what zone a property is within: http://services.land.vic.gov.au/landchannel/content/addressS…

  Conduct due diligence:

  • Talk to your local council.

  • Ask the real estate agent for a Section 32 - read the copy of title to be aware of any restrictions such as covenants, S173 agreements, etc.

  Alternatively, you can get a current copy of title here for a small fee: https://www.landata.vic.gov.au/

  Good luck with the property hunting, and please don't go in with the mentality that financial gains will make you happy!