What can you buy for $600k in Melbourne?
You’ve been saving for a while now, you've spoken to a finance professional, and they’ve said you can buy a house for around $600k. Well done! You should be really proud of yourself!
In this blog we’re going to show you a few areas and property types which we deem to be good investment options. We will also show you an example of a recently sold property that reflects what we would consider to be good real estate.
Villa units feature heavily in this blog… there are a few reasons for that.
Usually there are less than 6 on the subdivision and very low body corporate fees which generally covers public liability insurance and maybe some minor garden maintenance.
They are generally very well proportioned as they were often built between 1950 - 1980 before developers decided they were going to squeeze as much money out of one block of land as possible.
They appeal to a broad range of buyers including investors, homeowners, downsizers, apartment upsizers, first home buyers and many others in between. Generally built over 1 level which appeals to our ageing population, and they usually have a usable outdoor courtyard which is great for the animal lovers in the community.
Villa unit in Altona
Altona is an amazing bayside suburb less than 20kms from the CBD. It has two train stations and an amazing stretch of swimming beach. With Williamstown becoming less and less affordable, young families are moving to this gorgeous suburb and bringing funky cafes and wine bars with them!
You can pick yourself up a 2 bedroom villa unit, walking distance to the beach and train. Here’s just one example - https://www.realestate.com.au/sold/property-unit-vic-altona-140023027
Based on five years of sales, Altona has seen a compound growth rate of 6.5% for houses and 4.9% for units. (stats from realestate.com.au)
Villa unit in Reservoir
In comparison to Altona which covers an area of 16.6sq km and has a population in 2016 of just under 11k, Reservoir is only slightly larger at 18.6sq km but has a population of almost 5 times Altonas!
Fair to say there is development happening, and people are swarming to the area.
Its within 15kms of the CBD and has 3 train stations.. But one of our key criteria is to be within 1.5km walking distance to the station, so be warned, this rules out a large part of ‘Resi’.
But you can snap up an affordable villa unit like this one - https://www.realestate.com.au/sold/property-unit-vic-reservoir-139718707
With close to 200sqm, and built in the 1990s, this makes an excellent investment or first home!
Villa unit in Bonbeach
With the government over the last few years spending a huge amount of transport infrastructure to raise the train line, it has meant congestion has eased and access to the cbd has become quicker.
With the highest percentage of owner occupiers out of all the suburbs we’ve mentioned (68%), this also bodes well from an underpinning capital growth perspective.
It spans 2.8sq km, has one train station, and arguably Melbourne’s best stretch of beach!
You can pick yourself up a 2 bedroom unit a stones throw from the beach! What a lifestyle.. Here’s an example -
https://www.realestate.com.au/sold/property-unit-vic-bonbeach-140426627
House in Melton South
Rounding us out we have a slightly different option.. If you want to secure some land over 500sqm, Melton South is providing investors and first home buyers strong capital growth.
Located around 35kms west of the CBD.
Whilst the area still has some gentrification to come, the federal, state and local governments are committing a large amount of money towards infrastructure in this region.
- $740 million for the Western Interstate Freight Terminal in Truganina, within the City of Melton
- $920 million for the Outer Metropolitan Ring - South Rail connection to the Western Interstate Freight Terminal
- $101.7 million for the Local Roads and Community Infrastructure Program. Based on previous calculations, Melton City Council likely to receive around $1.3 million
Also looking at corelogic data, based on five years of sales, Melton South has seen a compound growth rate of 13.4% for houses and 9.7% for units.
An example would be this property - https://www.realestate.com.au/sold/property-house-vic-melton+south-140585083
Which is located just a few minutes from the train station and freeway.
Whilst we give you these suburbs, it does come with a warning. There are pockets, streets and types of properties within these suburbs we would NOT consider. So please.. Don't wing it. Give us a call so we can help you navigate the best possible purchase.
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