VIC Is positive cash flow possible in wider Melbourne or only regional Victoria?

@skuzy Some of the things I look for when trying to guestimate how a market or markets are doing/where they might be heading.

1. Overall health of the state and any obvious changes happening. (public sentiment is really important to me.)
2. History of CG, if the last 4 years has had an average of 8% a year (roughly) so has grown 30% in a few years then it gets me worried as what's left for me. I much prefer to see very average growth leading up to my buying.
3. How has public sentiment changed, eg news reports, media, magazines, news papers, etc etc
4. Look at price movements in the last few months
5. Stock on market reducing.
6. Discounting rate reducing.
7. Supply/demand of an area, dwelling type
8. Vacancy rates
9. Affordability when compared to other states.
10. rental yields
11. New infrastructure and planned.

Some stuff I look at.

 

I agree. The growth doesn't look good with Carlton. Please see 1-, 3-, 5-year growth in the link below. They are all negatives.
http://www.yourinvestmentpropertymag.com.au/top-suburbs/vic-3053-carlton.aspx

 

Perth was also rising.

Those who purchased in lower entry level Melb West have seen significant growth during this period. It a matter of purchasing when the market is starting to rise I don't see this as speculation, I see this as monitoring markets and smart investing.

Speculating is buying and hoping you will achieve growth when the market is not showing any signs of growth, oversupply.

That's why those who purchased in Syd, Melb, Perth have made money, they can cash in their chips if the like and sit pretty. It's not rocket science

 

I think there is still money to be made here

 

Exactly, risk = ignoring market conditions and living in hope.

if investors want to ignore the obvious they potentially waste years waiting for growth.

 

[QUOTEMTR, post: 55070, member: 349" . It a matter of purchasing when the market is starting to rise I don't see this as speculation, I see this as monitoring markets and smart investing.

I agree. I know there is a school of thought that says to invest in the place you know best, your comfortable with etc etc and thats fine. But from an objective, completely non emotional business standpoint. It is not the best way, imo. I know everyone has their own method, their own goals etc and a lot of this is subjective. But I argue at the same time a lot of this stuff is not subjective, it just is the reality. State cycles are vital to try and gauge and follow imo. When its Melb turn, time to jump on board, syd the same and when its SA turn I will be jumping on board without hesitation.

That's why those who purchased in Syd, Melb, Perth have made money, they can cash in their chips if the like and sit pretty. It's not rocket science[/QUOTE]

I have to agree, its just the truth. I know people who invested in Tassy, NT, SA for a standard IP in the last few years, after clear signs of where to invest were evident (i'm not talking about hindsight here) and I can only assume they would have done mediocre at best, when compared to other places. Of course they also could have done well because they may have bought at a drastically reduced price or something that can add good value too. That's all possible. I can only comment on what I have seen. This is only my opinion.

 

@MTR and @Leo2413

Thread title;
Is positive cash flow possible in wider Melbourne or only regional Victoria?

You lot are discussing something else all together!

De railing the thread!.....PC police.

 

i'm just responding to a post. Off track? Yes. But i don't see myself as a derailer. Apologies if i did.

 

It was TIC

 

Whats TIC?

 

https://en.m.wikipedia.org/wiki/Tongue-in-cheek


Back to OP now!

 

OK, PC Police, back to my favourite subject Melb, not sure about regional cash flow, certainly can achieve cashflow in Thomastown, 17 km from Melb, I think I mentioned this.

MTR