Unit in the East or House in the West?
- Thread starter shim
- Start date
Might help if you said what areas you are looking at in particular? The 'east' and 'west' are pretty big, both with good and bad areas. 
All depends on what your chosen investment strategy is. Its your strategy that determines what your purchasing criteria is. You do have a strategy & purchasing criteria dont you? If not, it's no wonder you're confused. Without one all property will look the same. Its the number one mistake newbie investors make.
I was just in a similiar position, I like and am familiar with Ringwood area and had a look at units in the area. Ended up settling for a house in Altona Meadows though. I am not familiar enough to judge the other areas, but I don't think you'd go too wrong with Ringwood, even if it was "just a unit" if bought in a good position, although I think you'd be looking at the top end of your budget to enter that market.
My strategy would be to buy and hold. Looking at holding the property for a minimum of 10 years.
Main purchasing criteria would be within walking distance to public transport and other infrastructure, focusing more on properties that have low vacancy whilst still have land for potential capital growth.
My thoughts are similar to you Biggles, can't go too wrong purchasing in Ringwood, only problem is I don't want to stress myself out on mortgage repayments For 350k, I'd have difficulties finding a poor condition 2 bedroom unit close to the station and shops
Main purchasing criteria would be within walking distance to public transport and other infrastructure, focusing more on properties that have low vacancy whilst still have land for potential capital growth.
My thoughts are similar to you Biggles, can't go too wrong purchasing in Ringwood, only problem is I don't want to stress myself out on mortgage repayments
For 350k, I'd have difficulties finding a poor condition 2 bedroom unit close to the station and shopsHold for min 10 years then what?
Are you aware, contrary to whats bandied around that becomes popular belief, its not the land that determines potential CG? Land is purely the commodity same as houses, villas, apartments & townhouses are. Its the ratio of supply and demand for the commodity that determines growth.
Food for thought.
In terms of long-term upside I think a house has more possible options. e.g. extension or sub-division or sell to developer.
Units have already had the development potential captured so you would want a higher rental return I think.
However houses being larger usually have the potential for larger one off maintenance hits.
Looking at outer areas I would lean towards houses. Just my opinion (possibly from spending years living in an flat in the inner east) but I think people moving further out do so because they want the space. People living further out in a small unit usually do so because its all they can afford. Which sort of tenant is preferable? Those with a tighter budget are likely to stick around longer.
Units have already had the development potential captured so you would want a higher rental return I think.
However houses being larger usually have the potential for larger one off maintenance hits.
Looking at outer areas I would lean towards houses. Just my opinion (possibly from spending years living in an flat in the inner east) but I think people moving further out do so because they want the space. People living further out in a small unit usually do so because its all they can afford. Which sort of tenant is preferable? Those with a tighter budget are likely to stick around longer.
Agree with this entirely.
Get a unit in the east, the west is becoming overcrowded, took me close to an hour to get from Point Cook to Port Melbourne and I left at 6.30am...
But seriously if you have a NEED for a house (ie kids, massive pets, DIY cars to fix etc) then yeah get a house in the west. With that budget Werribee, Laverton come to mind maybe new estate in Wyndham Vale? If you don’t need a big house with land a unit in the east will be a better investment due to scarcity, established infrastructure and the general east > west attitude.
Wait... you said you want an IP right? Then go east, it’s a no brainer east has better infrastructure more scarcity and lower vacancy rates.
But seriously if you have a NEED for a house (ie kids, massive pets, DIY cars to fix etc) then yeah get a house in the west. With that budget Werribee, Laverton come to mind maybe new estate in Wyndham Vale? If you don’t need a big house with land a unit in the east will be a better investment due to scarcity, established infrastructure and the general east > west attitude.
Wait... you said you want an IP right? Then go east, it’s a no brainer east has better infrastructure more scarcity and lower vacancy rates.
What makes you think anywhere else is different? I've driven into the city from the east in morning peak hour... awful experience. Driving up Hoddle Street in peak hour, nightmare experience. The best solution is to live near the city and work out of the city, so you are always opposite the traffic. My 20km drive takes me 25-30 minutes.
Or do what I do, and don't leave home in Croydon until 9:30 or so, and rock up to work in the city at about 10am.*
It's a good system
*
(except on days like today, when I've been in the office since 5:30am... but that's another story).
What makes you think anywhere else is different? I've driven into the city from the east in morning peak hour... awful experience. Driving up Hoddle Street in peak hour, nightmare experience. The best solution is to live near the city and work out of the city, so you are always opposite the traffic. My 20km drive takes me 25-30 minutes.
I didn’t think that and I didn’t say that in my post, I’m sure the monash and eastern are just as bad if not worse... I was just having a good old fashioned whinge
JamesGG, I wish I can leave home at 9.30am!
Getting on the Eastern at 7am would get you to Hoddle St by 7.30am....wait till 7.30am to get on eastern, you won't get to Hoddle until 8.30am!
Living in the city is great, but downside is no room for pets or family!
I definitely consider East over West, but with all the new infrastructure that Government has proposed, common sense that West will be the next boom?
Also there is no way Gen-Y will be able to afford a house in the East with an average income of 70k per annum...sooner or later most developments will trend to the West!
Getting on the Eastern at 7am would get you to Hoddle St by 7.30am....wait till 7.30am to get on eastern, you won't get to Hoddle until 8.30am!
Living in the city is great, but downside is no room for pets or family!
I definitely consider East over West, but with all the new infrastructure that Government has proposed, common sense that West will be the next boom?
Also there is no way Gen-Y will be able to afford a house in the East with an average income of 70k per annum...sooner or later most developments will trend to the West!
