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Located 42km north west of Melbourne CBD in Melton, 15 Kurrajong Crescent is a 1979 brick veneer home built on a 586 sqm plot of fully level, rectangular land.

Comprising 3 double bedrooms, one bathroom with separate toilet, open plan kitchen, internal laundry, this north-facing home is for sale at $225,000 through Lorraine Johns of Stockdale & Leggo real estate agents in Melton.

It is currently tenanted at $250 per week.

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Why I like this house and location:

• Located on a quiet and leafy street, this house is only 700m from Melton train station on Brooklyn street and 100m to the local Station Square Shopping Centre which includes Coles, Liquorland, local butcher, newsagent, UFS pharmacy, fruit and vegetable grocer, post office and restaurants.

• Bright and light-filled due to its northern aspect, it has a good size lounge, open plan kitchen which opens to a large patio and backyard which is perfect for entertaining and weekend barbeques. The driveway includes a lockup carport and storage.

• Kurrajong Crescent is a 5-minute drive to the Woodgrove and Coburns Central Shopping Centre at the corner of High street and Coburns road, Hannah Watts Park and Melton Valley Golf Club.

• Being on the southern end of Melton, this location surrounded by schools and learning institutions within a 1.5km radius which include Melton Christian College, St Anthony’s College, Victoria University’s Melton campus, Staughton College, Melton South primary school and Coburn and Brookfield primary schools.

• This location will become increasingly strategic in future due to new residential developments to the west of Melton South in Brookfield and the south in the Toolern and Eynesbury regions.
• Investment wise, this property is cashflow positive at current interest rates.

More information can be obtained from the Melton Shire Council.

Vital statistics

Suburb	Median house price $	Weekly advertised median rent $	Gross yield $	3-year growth %	5-year growth %	Average annual growth %
Melton	220,000	230	5.4	22.2	29.0	9.5
Melton South	208,000	220	5.5	18.9	22.4	9.7
Melton West	245,000	240	5.1	11.4	16.7	8.0

Source: Your Investment Property, December 2009

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How it’s calculated:

Median price: Median price for the 12 months to August 2009

Average annual growth: Average percentage change over the past 10 years as a per annum figure

5-year growth: Median price percentage change over the past 5 years to August 2009

Weekly median advertised rent: Median price of rental listings for the 12 months to August 2009

Gross yield: Estimated rental return, based on advertised rent to median price

Popularity: 24% [?]

Over the last 10 months, the Reserve Bank of Australia shed more than 4% off the cash rate to the current 3% which is now at a 50-year low. Capital cities around Australia continued to experience an acute shortage of housing stock where most cities had an average rental vacancy of less than 2%, thus fuelling strong rental demand. The Rudd government is determined to support the economy through this crisis by extending the First Home Owners Grant of up to $24,000 for new dwellings to the end of 2009 and continue to provide concessions for stamp duty to assist home buyers. The combined effect of all these factors was an over-whelming attractiveness to get into the property market for first home buyers and investors alike.

The main features and compelling strengths of this 1 bedroom apartment in Marobra are as follows:

Maroubra bay, Sydney

Guiding Principle	Compelling strengths 1 bedroom apartment at 94 – 96 Yorktown Parade, Maroubra (pictured above)
New or near new	Building is approximately 4 years old.
Tenant’s amenities	Security garage and storage cage.
Close to public transport	Bus stop directly in front of apartment building with express buses to CBD and Circular Quay.
Local attraction and lifestyle	500m from Maroubra beach and surf lifestyle, cafe and restaurants, 1.5km to Maroubra Junction’s retail and commercial centre – shops, cafes, restaurants, bank, post office, newsagent, Coles etc.
Strategic location	Within close vicinity to airport, University of NSW, Randwick racecourse, Royal Prince Alfred Hospital, Randwick and Coast golf courses.
Low maintenance costs	Boutique block of only 14 units with minimal facilities. Hence, total outgoings are less than $2,800 per annum.
Attractive and good floor plan	North facing private balcony with ducted gas for heater and BBQ, galley style kitchen and master bedroom with ensuite and balcony.
Strong rental yield	This property was rented out at $390 per week within 2 days of being on the market, giving a yield of approximately 6% per annum.

Development of residential, retail and commercial property in Maroubra Junction such as Pacific Square has transformed and increased prices of apartments in this area. However, I believe that pockets along Maroubra and Fitzgerald roads which are close to the beach are still relatively inexpensive compared to the junction area. It enjoys a closer beach and ocean front atmosphere, at the same time close enough to access the amenities of the junction without having to contend with traffic.

My second purchase was an off-the-plan 1 bedroom apartment in the Dee Why Grand development ~ an integrated residential, retail and commercial project which includes the upgrade of the iconic Dee Why Hotel. This development is located right at the heart of Dee Why’s commercial and retail precinct along Pittwater road. I foresee this development to be the dawn of a new cycle of gentrification in the area similar to how Pacific Parade has transformed properties around Maroubra junction in a little over 5 years.

The main features and compelling strengths of this Dee Why property are as follows:

Guiding Principle	Compelling strengths 1 bedroom apartment at Sturdee Parade, Dee Why
New or near new	Building is under construction and due for completion in July 2010.
Tenant’s amenities	Swimming pool, gym, spa, sauna, security garage and storage cage. The apartment is also part of an integrated development consisting retail and commercial businesses and refurbishment and upgrade of the Dee Why Hotel.
Close to public transport	Bus stop with express buses to the CBD.
Local attraction and lifestyle	900m from Dee Why beach and surf lifestyle, cafe and restaurants.
Strategic location	Within close vicinity to Northern beaches, Long Reef golf course, Warringah Mall.
Attractive Floor Plan	I have never been a fan of split level apartments unless they are a good size. I have made an exception for this property ~ 81sqm split level with 2 North east facing private balconies of 9sqm each overlooking internal gardens.
Favourable exchange and settlement terms	Only required $10,000 to exchange and up to 5% of purchase price until development is completed.

The third of the 3 properties was a 2 bedroom apartment due for completion in December 2009 in the Verve development in Erskineville. I have conducted research on suburbs which are close to the CBD with good access to public tranport and amenities. Such suburbs which have not seen a significant rise in value will have their day over the next 5 – 8 years and I believe Erskineville to be one of these suburbs. The latest Market Review by John McGrath of McGrath property agents appears to support this view.

The main features and compelling strengths of this property are as follows:

Guiding Principle	Compelling strengths 2 bedroom apartment at Verve development, 2 – 4 Coulson street, Erskineville
New or near new	Building is under construction and due for completion in December 2009.
Tenant’s amenities	Two side-by-side security car spaces and storage cage. I believe having an extra car space on title in a suburb so close to the CBD where there is an acute shortage of street parking give this property an invaluable advantage over other 2 bedders with single car space.
Close to public transport	350m to St Peter’s train station.
Local attraction and lifestyle	Walking distance to King street restaurants and cafe, 100m to Sydney Park, Erskineville village lifestyle.
Strategic location	4km to CBD, Chinatown, Central train station, within close vicinity to King street cafe and restaurant strip, airport.
Attractive Floor Plan	Top floor apartment of 89sqm open style living, dining and kitchen with a 28sqm North west facing balcony overlooking internal gardens, swimming pool and tennis court.

Popularity: 19% [?]