It’s got potential: 6 Melbourne properties ripe for reno

With more Melbourne suburbs than ever in the million-dollar median house price club (one in 3 to be exact!), more and more homebuyers and investors are seeking creative ways to acquire and add value to their properties.

Purchasing a fixer-upper is one avenue buyers and investors are exploring to get into the market at a more affordable price. Plus, they have the chance to instantly add value to a property by making structural and cosmetic improvements.

A strategy coined ‘renovesting’ has been named as one of the key property trends we’ll see in 2018 by Graham Cooke, Insights Manager at finder.com.au.

‘With the property ladder becoming increasingly difficult to climb, we may see more ‘renovesting’ in 2018; adding value to current properties through renovations,’ Mr Cooke says.

Australia’s largest professional body of buyer’s agents the Real Estate Buyers Agents Association (REBAA) warns home buyers ‘to look at renovations and value adding strategies to manufacture equity rather than wait for long-term capital growth’, as they expect prices to soften and flatline in several key Australian property markets this year.

If you’re considering tackling a ‘renovesting’ project this year, here are six excellent prospects located in REBAA’s 2018 Melbourne hotspots to add to your inspection must-see list.

Blue chip beauties

REBAA’s VIC state representative Leigh McConnon recommends ‘blue chip locations within the eastern and bayside suburbs within 15km of the CBD, provided the property is within 1km of a train station or tram line’ for investors.

For sale: 14 Margaret Street, Carnegie, VIC

Set on a 640sqm block 15km from Melbourne’s CBD and only 400m from Murrumbeena train station, it’s easy to see why this turn of the century home is billed as offering buyers an ‘astounding location and exceptional potential’.

With two generously sized bedrooms, high ceilings, ceiling roses, two bathrooms and a backyard bungalow, this charm-filled weatherboard is crying out for some major TLC to restore it to its former glory.

Selling agent Luke Banitsiotis of Woodards Blackburn suggests ‘This block can be reimagined into townhouses or units as well as a brand new and stylish family home (all STCA), while the period appeal of the existing dwelling means that renovation or extension in all directions (also STCA) will also be a tempting option’.

For sale: 1153 North Road, Oakleigh, VIC

About 1km from Oakleigh train station and Oakleigh Central shopping, this red brick home is an ideal fixer for an investor or a first home buyer wanting to invest in a conveniently located family-friendly area.

With a huge backyard, there’s scope for an extension or subdivision of the 505sqm block too,  subject to council approval!

For sale: 5/19a Gordon Street, Beaumaris, VIC

This sweet, albeit slightly tired and dated internally, two-bedroom unit is situated 1km from Cheltenham station and 1.7km from Mentone Beach.

Warrick Armour of Ray White Beaumaris sells the unit as: ‘Presenting current-day comfort and exciting potential to improve; add some contemporary style, a fresh coat of paint, and your own personal touches, and the interior will soon be sparkling’.

The property is in the valuable Beaumaris College and Mentone Girls Secondary school zones and a kilometre from Victoria Golf Club.

Northside convenience

For excellent value for money, McConnon recommends that investors head north to suburbs such as Pascoe Vale, Hadfield, Glenroy and Reservoir.

For sale: 55 Hughes Parade, Reservoir, VIC

Marketed as ‘potential rich’, with its original bathroom, large yard and three spacious bedrooms this brick home is an ideal renovator’s delight.

The property is within close proximity to several schools, Gellibrand Crescent shops and 1.3km from Ruthven station.

Alastair Surtees from Ray White Reservoir describes the home as ‘sited on a perfectly flat 836sqm (approx.) allotment, it is clear that this property has potential in large quantities and is therefore perfect for the growing family ready to move into their first family-size home or astute investor keen to secure a solid blue-chip investment’.

For sale: Daley Street, Glenroy, VIC

Stewart Montgomery from Purplebricks wastes no time marketing this home: ‘Renovate Or Detonate…Calling all builders, developers, those who love to renovate and or astute investors. If you’re looking for your next project or development site (STCA) look no further.’

The house has lots of character on display, including high ceilings, timber flooring, ceiling roses and attractive crown moulding throughout.

1.2km from Jacana station, close to shops, cafes, parks and schools, the home has everything a renter or owner-occupier could want at their fingertips.

Affordable opportunities

For those happy to venture slightly further afield McConnon advises buyers to consider areas that are well serviced by shops, cafes and public transport.

A good example is the suburb of Diamond Creek which is ‘likely to outperform the market as it still offers affordable housing and has undergone a significant gentrification process’, McConnon says.

For sale: 1/20 Fyffe Street, Diamond Creek, VIC

Only 500m from Diamond Creek Station and adjacent to the picturesque Diamond Creek Reserve, this is a perfect ‘location and lifestyle’ opportunity for investors and owner occupiers alike.

With front and rear patio areas, two-bedrooms, lock up garage and a private yard, there are many areas to improve upon in this functionally laid out reasonably priced unit.

For more excellent areas to invest in take a look at these five Melbourne hotspots for Millennial buyers and top suburbs for rentvestment.

Happy house hunting!