Melbourne Property To Buy (Suburb Recommendation): 500K budget

bin555 on 19/02/2018 - 13:31

I have following investment criteria:

500K
House/Townhouse
Preference towards smaller place in a nicer suburb and better location.
Investment

Domain has auction results: https://www.domain.com.au/auction-results/melbourne/

Can you suggest me some suburbs which i should look at to fit above criteria? I am from sydney and have no clue on where to start. Another thread suggested getting a buyers agent is an overkill for that price.
My friend suggested Point Cook couple of years back. It seems the prices are over 600K in that area now.

Home & Garden

Comments

  • [Deactivated] on 19/02/2018 - 13:45
    +32

    500K

    Bendigo.

      • Cyphar on 19/02/2018 - 18:50

        Melton. Can still get a 3BR house for $350k in the newer estates. Smaller properties though.

        • vinni9284 on 19/02/2018 - 18:54
          +3

          In the newer Estates, it is more like $450K for a 3 bedder.
          Possibly an older house for that price.
          I guess is what you define a property "small" as these days, they are a size of a postage stamp. lol

          Cheers

        • Cyphar on 19/02/2018 - 19:00
          +5

          @vinni9284: To completely contradict my post, I personally wouldn't buy any new property in Melton. There were court cases a while back because of poor slabs causing houses to literally crack down the middle. My friend finally won her 5 year battle with the builders and it got fixed a few months back. On the other hand, I bought an older house on a large 5br property here for $290k back in 2014 and couldn't be happier.

        • vinni9284 on 19/02/2018 - 19:03

          @Cyphar:

          I'm glad your friend won her battle.

          However, this depends on the builder IMO.

          Wow $290K 3 years ago, now your house might be worth twice as much now ~ $600K+ good for you!

          So you are happy with living in Melton? That is a growing suburb!

          Cheers

        • bin555 on 20/02/2018 - 13:37

          @Cyphar: Seems like a great buy. Can particular area or street in Melton you recommend or one should avoid for that matter?

        • bin555 on 20/02/2018 - 16:05

          @Withdr4wn: I see. I figured as well to avoid brand new homes. Which area of Melton are you staying or recommend?

        • BartholemewH on 21/02/2018 - 18:24

          @Withdr4wn:
          Lol, 3 or 4 at a time. Many building supervisors are pushed into doing 30+ concurrently for the big guys.

    • paul11 on 19/02/2018 - 20:46

      • Tarneit (Many new estates coming up, Hundreds of house and land packages available for less than $500K). 25 mins to CBD via Vline.

      • Wyndham vale (A bit far, but you get more land/bigger lots for your $$$). 35 mins to CBD via Vline.

      • [Deactivated] on 19/02/2018 - 20:53
        +26

        The home invasions are free.

        • paul11 on 19/02/2018 - 20:56
          +7

          Yes, True for most new estates ….

        • bin555 on 19/02/2018 - 20:58

          so not safe in Tarneit or Wyndham?

        • paul11 on 19/02/2018 - 21:06

          @Yoman55555: Melbourne CBD was also not safe once … It depends how you look at things …. The nearby suburbs like Hoppers Crossing and Williams Landing have almost double the prices compared to Tarneit. A piece of land I purchased in Tarneit an year ago for $225K is now $300K and I haven't yet started building.

        • knk on 20/02/2018 - 11:44

          @Yoman55555:

          Lived in that general area for the last 7 years and never had an issue myself. You do see alot of youths roaming the streets, but so far I have not actually personally seen anything dangerous happen.

          That said there have been a few things over the news that are cause for concern.

        • bin555 on 20/02/2018 - 13:52

          @paul11: Thanks

        • ialam99 on 22/02/2018 - 06:07
          +1

          @Yoman55555: depends on what your after…if your keen on home invitations, Tarneit is it. if you prefer car jacking, try the northern suburbs. if you prefer being stabbed with a beer bottle, Frankston is the place for you. in comparison Sunshine is probably safest because they steal your car when your not in it.

        • raiseyoursteaks on 23/02/2018 - 12:01

          @Yoman55555: log on to protect victoria and see all the issues with these suburbs and a few more. You dont want fifty cent knocking on your door asking for some salt

    • DanielR on 22/02/2018 - 13:49

      Bendigo is expensive- have you seen the prices?

  • mysterytal on 19/02/2018 - 13:55
    +2

    Investment… Anywhere really. The actual suburb doesn't matter as much when it's an investment property. Personally I'd look for something close to home where you can do any maintenance on the property yourself when required instead of getting someone else to do it.

    What is your target market? Short term tenants such as students, singles, young couples, retired seniors maybe long term tenants such as families.

    • GG57 on 19/02/2018 - 14:21

      I agree with this advice. Identify your target market and area, and those will drive your decision process.
      Some areas that may have a lower socioeconomic base can be good for investments in that there is high rental demand. Visit a few of the areas that come up in search results and get a feel for the area; talking to the selling agent will also help.

      Out of interest, I searched your criteria on domain.com.au for 'Melbourne region' and was surprised with the results. All different types of houses / apartment / townhouses, from all areas of Melbourne including in the CBD.

      • steff on 19/02/2018 - 14:24
        +3

        you cant buy a townhouse or house for 500K in or around the cbd, unless you're looking for apartments which OP doesnt want

  • [Deactivated] on 19/02/2018 - 13:57
    +17

    Lol at $500k for a townhouse in a nicer suburb. Maybe a beach box.

  • 87percent on 19/02/2018 - 14:00

    i dont understand why more people don't use buyers agents. It's literally the biggest purchase you will ever make in your life, why the hell wouldn't you use an expert?!

    • mysterytal on 19/02/2018 - 14:06
      +9

      They cost money…

      I don't see the need for one for a fairly basic purchase.

      • plmko on 19/02/2018 - 14:15
        +2

        It's not basic if you're asking the basic question of which suburb to buy.

        • steff on 19/02/2018 - 14:25

          how is a buyer's agent going to make you make up your mind if you're undecided?

        • plmko on 19/02/2018 - 15:41

          @steff:

          https://www.realestate.com.au/advice/what-is-a-buyers-agent/

          1. The full service sees them search out properties meeting their client’s criteria and negotiate the purchase of the property ultimately chosen, whether by private sale or auction. They may look for one specific property, or an entire portfolio, depending on your needs.
        • steff on 19/02/2018 - 15:47
          +1

          @plmko: OP should jump on realestate.com.au and domain.com.au and search for it him/herself.

          Set your budget and don't make it an emotional purchase (given it's an investment, should not be too hard to do).

          Do you honestly think a buyers agent is going to have your best interest at heart?

        • plmko on 19/02/2018 - 16:06

          @steff:

          Not going debate whether you find an ethical agent or not, if someone doesn't know what a good suburb is I fail to understand how searching blindly on the net is going to get you that property.

          Let alone trusting a $500k purchase to some randoms on the net. But then again the propety market is full of whales and suckers, so many over priced crap.

        • popcornready on 20/02/2018 - 12:07
          +3

          @plmko:

          These agents are useless.

          I’ve had friends use them and they yielded zero benefit, yet sold themselves as some gurus.

          In today’s market, there is no place for them

        • SkMed on 21/02/2018 - 10:11
          +1

          @popcornready: Agreed. Just like travel agents i'm surprised they're still around. Same with Real Estate Agents for rental properties, should all be taken over by online services by now.

        • virhlpool on 22/02/2018 - 21:24

          @SkMed: You haven't understood the difference between seller's agent and buyer's agent then. Buyer's agent adds much value when you don't know where to buy, what to buy, how to buy cheap, etc. Especially if you are buying inter-state or in suburb you are't familiar with, buyer's agent services come handy. Some of them are rip off for the service they provide but then you can always negotiate the fees.

        • THICKnSLOW on 22/02/2018 - 23:20

          @virhlpool:

          Buyer's advocate get paid for spending other peoples money, when they don't have any money to buy the property themselves.

          Seller's advocate get paid for talking to buyers and potential buyers and other people.

        • virhlpool on 23/02/2018 - 14:15

          @THICKnSLOW: Who said buyer's agents don't buy properties for themselves?

    • mskeggs on 19/02/2018 - 14:37
      +4

      What value does a buyer's agent bring?
      The certainly add cost.

      • 87percent on 19/02/2018 - 15:02

        When i purchased my PPOR, I used a buyers agent. Told them what we were after, and how much we were willing to spend. They organised inspections at 5-6 properties at a time. When we decided on a property we liked, they bid at auction for us, we just sat there

        • mskeggs on 19/02/2018 - 15:24
          +10

          How was that easier than swiping through Realestate.com.au apps on an ipad, and raising your hand once at auction? I guess if they only charged you $50 it might be worth it.

        • knk on 20/02/2018 - 11:46
          -1

          @mskeggs:

          Not sure how much an agent costs but I'd imagine they have a better idea of what is / isn't a good investment and how much one should be spending on a particular property.

          People get emotionally invested and end up blowing through their budgets alot of the time.

          That said, I have no idea what kind of a commission a buyers agent takes?

        • popcornready on 20/02/2018 - 12:08

          @knk:

          Trust me, they don’t know.

          If they did, most buyers agents wouldn’t be driving in bombs and rather making money themselves

        • knk on 20/02/2018 - 12:37

          @popcornready:

          Bad experience? lol

          I'm sure there are good and bad ones, I guess the issue is picking them apart when we'd be looking for expert guidance and don't know enough on the subject ourselves.

        • sd on 22/02/2018 - 12:04

          @knk: I recently purchased a house and I was quoted 6K from a buyers agent, 3K upfront to look and 3K after sale. I didn't think they were worth it because my budget was under 500K and I had spent a bit of time understanding the market myself, if they were around 4k or less and I was at the start of my home purchase, I could see them being useful.

        • virhlpool on 22/02/2018 - 21:25

          @popcornready:

          Who said they don't make money?

        • popcornready on 24/02/2018 - 19:38

          @virhlpool:

          Can’t see where I said they make no money

      • gimme on 21/02/2018 - 21:34
        +2

        Anyone with some basic research skills should not waste $$$ on a buyer's agent. I know this from personal experience and it was really 12k down the drain. One of their major selling points is the fact that they negotiate better and understand value blah blah blah but if you're buying in Syd/Mel you're mostly at the mercy of auctions so their negotiating has zero value.

        At bet you'll get some glossy 'report' of the property etc etc but nothing you can't discern yourself if you have half a brain.

        I also used one of the most reputable ones. They weren't lazy or dodgy by any means but I soon discovered that they really add no value - for me anyway. I just put it down to the cost of buying along with the massive stamp duty hit and moved on. Luckily my property has gone up about 40% in value in under 3 years so all came out in the wash.

        • virhlpool on 22/02/2018 - 21:31

          One of their major selling points is the fact that they negotiate better and understand value blah blah blah but if you're buying in Syd/Mel you're mostly at the mercy of auctions so their negotiating has zero value.

          They have strong connections with seller's agents and hence they get access to 'under valued' properties easily if at all they existed. It's hard to develop that relation with multiple people overnight. Also, there's always a difference in the skills of a person who buys 50 properties every year vs someone who has bought 4 properties in lifetime. There are many buyer's agents who buy 50+ properties in a year. I can't believe buying that many properties don't give them any edge or additional skills.

    • dcep on 19/02/2018 - 15:01

      we are expert professionals

    • bin555 on 19/02/2018 - 15:09

      happy to consider if you can recommend one who specialises in Melbourne

    • dufflover on 20/02/2018 - 21:02
      +3

      It's literally the biggest purchase you will ever make in your life

      Buying your home is the biggest purchase in your life.

      Jumping on the speculative investment bandwagon is the biggest gamble of your life.

    • GourmetFoodie on 20/02/2018 - 21:05
      +3

      I investigated buyers advocates by interviewing a bunch and don't rate them. They literally sell you their "story" like a snake oil salesman and most have fee structures that you have to pay a base amount even if you don't buy something. Then there is the fee paid upon purchase which is usually a percentage of the purchase price….talk about mis-aligned incentives!

      They claim they can find "value" in this market which I strongly dispute. Especially once you add their fees into the total sale price. Also everything goes to auction these days so forget them finding "amazing properties not on the market through their network". Their only use is searching if you are time poor.

      Seriously if they were any good they would actually be real estate agents. Or spending their time flipping properties.

      • virhlpool on 22/02/2018 - 21:35

        There are many BAs who are more successful than seller's agents. Why should they change their profession if they are minting money buying heaps of properties every year on behalf of people? If you are saying this experience doesn't make them better at finding under-valued properties or properties with better potential, then well..

    • [Deactivated] on 21/02/2018 - 16:44

      | why the hell wouldn't you use an expert?!

      haha good one. I have a few friends former "experts". One of them was the company secretary / expert when need be, other was a chef prior to being an expert and I can go on :))

      be careful mate, be very careful. You are paying someone to give his/her opinion. Might as well ask a stranger, most of the times it's the same thing.

      • virhlpool on 22/02/2018 - 21:36

        Top 10 buyer's agents in Melbourne have very solid background in real estate industry. None of them were chef or secretary I bet. They aren't just 'someone'. They buy more properties in a year than what you or I would buy in lifetime. Knowledge of the market really DOES matter. If you don't care about finding good value and happy to buy off-the-plan house, then you don't need BA for sure.

        • [Deactivated] on 24/02/2018 - 00:57

          I agree. The knowledge of the market does matter a lot. However, it really depends on who your expert is. Some times or most of the time might not be an expert at all. That's all I'm saying. Do your research prior.

        • virhlpool on 24/02/2018 - 09:17

          @zapy: I get your point. I am referring to reputed buyer's agents in market and not random so called experts.

  • PAOK11 on 19/02/2018 - 14:13

    sunshine & surrounding areas

    • Dangit on 21/02/2018 - 17:19

      Sunshine area is not in the 500k area unfortuantely

    • yasindesign on 22/02/2018 - 09:01

      kealba, small pocket near sunshine/st albans

  • mreddie on 19/02/2018 - 14:45
    +1

    Sunshine

    • vinni9284 on 19/02/2018 - 19:01

      Possibly for a 2 bedder unit. That's about it. ~ $450K
      Or possibly an appartment.
      Sunshine has sky-rocketed over the past year

      • 50cent on 21/02/2018 - 22:23

        I believe it's referred to by the locals as Scumshine !!

        • vinni9284 on 24/02/2018 - 10:07

          lol… well a wealthy scum that has $650K+ can possibly afford a house in Scumshine..

  • Oz8argain on 19/02/2018 - 14:57

    look west, (newish) townhouses in eastern areas are at least 800,000

    • Cyphar on 19/02/2018 - 19:01
      +1

      No different in the west. Areas like Rockbank with the new estates are selling for $750k minimum.

      • [Deactivated] on 19/02/2018 - 20:58
        -3

        It's very different buddy

        • serpserpserp on 21/02/2018 - 11:10
          +1

          The difference is about +50km for the same size house out east that you can get out west.

        • [Deactivated] on 21/02/2018 - 13:34
          -2

          @serpserpserp: Well that depends how much money you have.

  • cloudy on 19/02/2018 - 15:03
    +1

    Lots of units around Brunswick west are around that price. It's close to all PT, close to freeway access, cafes etc have been around the Brunswick area for ages and spreading to nearby west, north, and south of Brunswick.

    • steff on 19/02/2018 - 15:26

      hipster central though lol

    • bin555 on 19/02/2018 - 18:39

      Looks great. However, the prices are a lot higher. Average house is over $700K. Only 2 bedroom apartments under 400K.

      • jjjaar on 20/02/2018 - 08:38

        Apartments there are a great investment though as the rental market is very competitive. Depending on how modern the interior is (eg kitchen and bathroom mostly), and the location, you'll get between 350 and 500 a week for a 2 bed apartment in Brunswick west.

        • oO0Dam0Oo on 20/02/2018 - 11:24
          +2

          Until you have to deal with body corporate and shoddy building defects. Saw us out of pocket $70k after builders and developers shut shop over defective leaking building. No tax write off as deemed capital improvement works. No government building insurance greater than 3 levels. Thanks Vic gov. Be careful!

        • jjjaar on 20/02/2018 - 11:25
          +1

          @dbriff: what was the age of the building? I wouldn't go for anything over 2 storeys or built after the 1990s. Ideally something built in the 60s or 70s

        • oO0Dam0Oo on 20/02/2018 - 11:27
          +1

          @jjjaar:It was a 3 year old building at the time of remediation works. Defects presented after 1 year. Set our family back in a big way. Even annual OC fees were around 7k a year no gym no pool.

        • jjjaar on 20/02/2018 - 11:39
          +2

          @oO0Dam0Oo: not sure why the neg, a bit of research would have saved you all of this hassle.

          I see a lot of buildings going up in too short a time. That sends alarm bells to me. I'm not surprised the building presented defects and so quickly. The developers are only working for themselves so they can rush off and build the next. It's about profit not durability. Many apartments in these builds are for sale within 1-3 years of being finished, which also sends warning bells.

          Also surely you would have known about the body corp fees prior to buying? You can't complain about that.

          Buildings older than the 90s probably have their own defects, but are still standing. And you can look at a sale history to see how often the flats change hands.

        • oO0Dam0Oo on 20/02/2018 - 11:47
          +1

          @jjjaar:Negged in error apologies. It wont let me reverse it. Edit: Mod fixed.

          The body corporate fees started at around 3.5k per year and progressively increased to 7 k. Purchased of the plans in a great location. It should have been a great investment.

          I am sure many have done the same and had great success. Just putting my experience out there to make people aware these things can happen and the impact it had on our family was significant.

          Disagree with a bit of research would have save me the hassle. I am not sure anyone in a similar situation would have such insight to an event that has not even transpired. 3br in Brunswick 160sqm next to Sydney Rd and train/tram ticked all the boxes.

        • sprucemoose on 21/02/2018 - 02:24
          -1

          @oO0Dam0Oo: Sounds
          like you learnt nothing from your mistakes.

        • serpserpserp on 21/02/2018 - 15:15

          @oO0Dam0Oo:

          Bit rough, 70k cost per each apartment? How many apartments in your building?

          Speaking of builder stories, had a friend has a concrete driveway poured the other day which was stuffed up, cracking towards the street. The guys who did it wanted to be paid in full for the job they did and then paid AGAIN to fix the problem. Owners told them to get stuffed and didn't pay them the rest of the money (they paid 50% up front for the materials) after they put the heavy word on them. Now they basically have a cheap but flawed driveway. Gonna wait 5-10 years for the thing to deteriorate before shelling out again. I just think the building industry is so unregulated and so overpriced it can be a real lottery to get good tradesmen and then even then they can make an honest mistake or get a subbie that is garbage and they make a mistake!

        • petepjs on 22/02/2018 - 09:07

          @oO0Dam0Oo: We bought an Apartment in Kensington (new) a few years back for $350k. Now coming up for 10 years old in a two story. 1st issue was the pebble concrete outside which began to loose its surface - became our problem as builder denied liability and manufacturer blamed builder (same issue for most of the complex). Then after a couple of years tenants advised dishwasher doesn't work- although builder installed the dishwasher in kitchen at build there was no plumbing! Then there was the mold issue, insufficient ventilation becoming a health hazard so $7k to put in some external ventilation. The strata fees went up 30% last bill from $676 to $997 a bill, as 10 year maintenance hasn't fully been budgeted by the strata. But the unit is now worth over $510k so was it a good buy? Time will tell.

      • cloudy on 20/02/2018 - 09:13

        Units are around 500k.

        I went into this on the weekend.

        https://www.realestate.com.au/property-villa-vic-brunswick+w…

        Usually 2 bedrooms, established, near amenities.

      • serpserpserp on 21/02/2018 - 11:13

        I'm sad to report that any 2 bedder house in Brunswick West will be way over 700k.

  • benaud on 19/02/2018 - 15:23
    +1

    Watergardens area is surprisingly affordable and that shopping centre is great and theres a train line, so Sydenham, Kielor, Taylors Hill. Takes about 45 mins by carat peak from the CBD.

    • bin555 on 19/02/2018 - 15:48

      Thanks a lot. THat is helpful. That is ideal distance as well to the city.

    • sydsm on 20/02/2018 - 11:08

      This actually looks pretty good!

    • AceIsMe on 20/02/2018 - 14:10

      Yes, I vouch for Watergardens and surrounding suburbs (Hillside, Sydenham, Taylors Lakes, Taylors Hill) Very nice and safe area to live in with plenty to go around including public transport and freeway access. The only problem is that you won't be getting much for 500k. You might need to stretch that budget a bit even for a small unit.

    • tone212 on 21/02/2018 - 13:48

      I vouch for this area also, underrated and great CBD links by car and train. You could get a townhouse/unit in Sydenham and potentially Keilor Downs for under $500K. Houses no chance.

    • serpserpserp on 21/02/2018 - 15:16

      Watergardens also has a handy cheapo bus to the airport. But the downside is that it is also near the airport…

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