Where to buy property now – Den’s tips!

Where to buy property

 

I believe that there are some good buys in the Melbourne market and here’s where.

1. South Eastern suburbs – Springvale South, Keysborough, Noble Park

These suburbs are near the growing centre of Dandenong, have a diverse range of industries and a heavily funded secondary school (Keysborough College – so it’s not a bad idea to be near one of the campuses).

There’s also a major shopping centre nearby, good public transport (and these three ‘burbs are on the city side of Eastlink). You can get to Melbourne on the train in half an hour or so from one of the nearby train stations. Houses are around the $400k mark, units a little cheaper.

It’s good value right now.

2: Inner Western suburbs – Sunshine / West Footscray

These western suburbs are traditionally a bit down-trodden but there is a gentrification process which has already taken in places like Yarraville and Seddon and, if it keeps moving, these are next.

Good services; shopping centres, public transport etc. These ‘burbs are as close to the city as you can get without having to pay a big price tag. They’re also well serviced by freeways and enable you to be heading into/out of town very quickly.

Look around and you could find some decent value.

3: North Western suburbs – Broadmeadows and surrounds

There is heaps of money pouring into this area to continue its gentrification from what was, frankly, not the best of reputations. This could be a bit of a long-term prospect but I reckon it’s worth having a look around. Good services, good public transport, lots going on…

The bottom line is that smart investors can spot winners in any market. Know your strategy and know your market!

And good luck with your investing.

Comments

  1. Hi Den,
    Thanks for the fabulous insight.
    I would say about my mental barriers. I live in Adelaide, and I can not accept to buy a property far from myself. Do you have any comment in this regard?
    Cheers,
    Asef

    • Hi Asef,

      Thanks for your comment.

      I think it’s worth looking at the reasons for you not wanting a property far from where you are. Is it because you want to keep an eye on the place? Is it because you know the market in Adelaide better? Is there another reason?

      I find that most people who want property in a certain area have some sort of emotional attachment somewhere to the area, or to their property. For a first property this mightn’t be such an issue – you have to invest somewhere so you may as well make it somewhere you’re familiar with! Make sure you do your research thoroughly though…

      For subsequent properties, I’m a big believer that these emotional attachments can sometimes get in the way of good investing. If you invest only in the Adelaide market then you’ll find that your properties are more likely to perform similarly; if the Adelaide market is booming then you’ll be delighted but if it’s stagnant (or retracting) then things won’t be so good for you. Ultimately it’s about diversifying enough to reduce your risk.

      Of course it’s your decision but I’ve found that having properties in several different cities has almost always meant that I have some area of my portfolio growing. And I reckon that’s a good thing!

      I hope this helps. Thanks for your note, and good luck with your investing!

      Den

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