HELP!!!! Wantirna South or Ringwood?

H

House monster

I need help on making a decision on buying a property between these two. But I don't have knowledge and don't know which one is the best weighing on the ups and down.

My aim is to buy a property:
.Maximum $500
.Immediately rent out at a minimum 4%
.After 3 years, either renovate or build at the back or knockdown and new


Wantirna south near Knox city

The facts that I'm limited to:
. Hard to apply for subdivision from council
. Nice community
. No trains or trams
. In the future to become a great area (but don't know when)
. Not many rental properties available so there's demand


Ringwood on the south side of railway lines

The facts that I'm limited to:
. Large plots easier to apply for subdivision
. Not as nice community
. Access to major transport hub, now and future
. Large supply of rental properties on the market



I'm also open to any other suggestions in terms of which areas to buy.
 
Personally I like both areas, but if you're renting out I'd usually suggest an area closer to or with better public transport.

Ringwood's Eastland is also in the midst of some fairly large renovations, I believe they're aiming to make it the main shopping area of the outer east and they're also looking to build a Costco nearby.

Ringwood East and Croydon may be good options as they're on the same train line and still close by. Croydon has a small pocket within 1.5km to the station at the moment with a few small scale apartment buildings though so you may be up against some developers for larger blocks which will possibly push up the price.

Wantirna is maybe slightly nicer, but as I've managed many properties in the area it's not that different IMO. If you're keen on somewhere out there you also have some parts of Scoresby/Ferntree Gully which may match your criteria.
 
Are you intending on this being purely an investment or something to reside in, in the future?

Why have you narrowed it down to these two suburbs?

I know these areas like the back of my hand now and would suggest that Ringwood is a smarter move overall; providing you buy the right property, that is.

Be mindful that there is a MASSIVE development at the moment on Stud Road. When all the stock comes online it will really effect any margins your hoping to achieve through development; if that is your intention.

You've not provided enough info about you though.
 
500k investment with only 4% return, IMO, there are far better investments to be made. I would say to look beyond just purely geographically
My 2 cents only..
 
neither both dumpsville and unattractive suburbs imho
As you said no PT. This is the deal killer for me - ask anyone who drives into the city peak hour. Its hell on earth and they aint building any more train/tram lines anytime soon.
Best to follow a train line and look for other suburbs closer to the city and buy a tired house and the largest block you can find. A house that is as close as possible to land value, say 460k for the land and 40k for the house.
Footscray? Nth melbourne? tired 2 bedder in St kilda, elsternwick? - all heaps better options that (in the case of the flats) get you your 5% yield.
 
My situation

I want to buy into Ringwood or Wantirna because I can't afford anywhere else in terms of buying a house to rent out for the next three years easily. My aim is to be able to subdivide or develop after a few years and sell the property.





Are there any alternative areas? or alternative strategies?

Also, it sounds like Ringwood or Ringwood east is the go. What pockets would be best to look at? And is Ringwood easy to rent out?
 
500 Stud Road will dilute what you may have in Wantirna - we looked long and hard in Wantirna for 3 br houses not long ago...I wouldn't have though there was a lot of good stock sub $500K in Wantirna..most of the rentals on 3 br homes in Wantirna get very similar to Ringwood..$350-$390 per week is the norm..

As for Ringwood, people have already discussed the upside in Ringwood - Westfield development, AquaNation (long story that one), Ringwood Bus & Train interchange if the state govt gets around to it..

Houses however normally comprise about 50% of the rentals in Ringwood, lots of units available to rent as well.

On 3 bedroom homes you're got a ceiling at $400/week on rentals; the norm is $350-$380.

I like Heathmont, less stock, still close to transport without being in the "buzz" of Ringwood - you can still get a "decent" 3 bedroom home in Heathmont where $380-$450 is attainable as a rental for a 3 br home.
 
House monster said:
I want to buy into Ringwood or Wantirna because I can't afford anywhere else in terms of buying a house to rent out for the next three years easily. My aim is to be able to subdivide or develop after a few years and sell the property.

Are there any alternative areas? or alternative strategies?

Also, it sounds like Ringwood or Ringwood east is the go. What pockets would be best to look at? And is Ringwood easy to rent out?
Click to expand...

Sry, but I just cant get my head around with 500k investment for 4% return.

I would call up Jake and have a chat to him about strategies / location or whatever uncertainties you may have in Victoria. He might give you some indications
Apparently theres a seminar in Vic shortly, which Jake will be as guest speaker, maybe its worth attending
 
Good to see that your budgeting a good time period to get the permit for subdivision. I have seen lots of people hurt like hell as they have bought a 500k place with a 4‰ yield and then bleed for 18 months getting permits for a unit thinking it would only take them 3-6 months.
 
To not deal with Knox City council is a good enough reason to buy in Ringwood or Ringwood East instead. I know the area very well and have submitted a few town planning permit applications into Maroondah recently. Maroondah 4-6 months. Knox - 12 months if you're lucky!

Oscar
 
Thank you!

Thanks everyone, I'll look into Heathmont as well as Ringwood. The rental supply is quite large in Ringwood. I wonder how long the turn over for a property is.
 
We have a 2br unit in Ringwood, near station and Eastland. Getting $320pw
and has always been quite easy to get tenants but have only had 12 month leases so far so turnover is high. A house would probably be different.
 
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