VIC Melbourne - Update please

OK...yeah know all about weatherboards...too much maintenance.

 

I live in Brunswick East, in an apartment and even our apartment has increased by 10% lol

 

Yeah..but issue is if you let it go then becomes an issue constant maintenance. But good suburbs....yours are in.

 

I’m over the western side of 3056 and same story here. The % of owner occupier is over 70% after being mostly rentals a couple of years back, so the owner occupiers moving in is not a new phenomenon. The price rises are, though!

What’s your thoughts on where Brunswick apartment market is headed? I reckon upwards, if large and near parks, once people are forced back to the CBD.

 

Assuming these arent high rise apartments?

 

Under 10 year old, 3-4 story

 

While I think there’s better places to invest for strong capital growth over the next few years, Perth etc., I think Melbourne’s been beaten down a lot in the media. For a buy and hold forever mindset, I think Melbourne is great, if you can take the lower growth compared with some other places over the next few years. People have forgotten that Melbourne is major global city and actually represents decent value compared with Sydney etc. Also interesting to see the same phenomena happening overseas, people leaving London for smaller cities, rural. I do think people will return to big cities again in a few years, probably due to some financial catastrophe. Things will ebb and flow. Big city to small city, whether it’s covid, or some other event that pops up. I’ve made recent purchases in Perth but feel like my Melbourne development potential block is still a keeper for the long term.

 

I love Melb, but I also believe in cycles.

You may think Melb is cheap compared to Syd but rents are also cheapest in Oz, which will impact massively on returns and ability for investors to service debt. Its not over yet, will rents continue to fall? Its all about supply and demand.

I will be watching auction clearances over the next 3 months for an indication whether more supply is coming to market. Its still early days.

 

Have look at rents of units in Sydney and it is just as cheap. Some within 15 klms of city renting under $330pw for 2 brms.

Sydney and Melbourne are about to have their 2003 moment...silence of lambs for a couple years...

 

I’ve got a block with a 3br in Lalor and can be developed from a 1 into 4. Agree the yields make it a no go at the moment and not expecting this to change anytime soon. Rent has stayed mostly steady along with vacancy rates for the area and stock listing times are decreasing significantly since peaking in 2020. I don’t really look at data for other areas so not sure the broader trend. Certainly not expecting it to boom for a few years but will look to hold and develop when the time is right. I think the major cities can whether financial storms/ recover faster a bit better but I don’t have any data to prove that. Just the vibe I got from US property prices during the GFC. End of the day just being diversified I suppose, if looking to buy and hold.

 

Lalor is good, develop down the track. Was this a recent buy

I did this in Thomastown built 4 and sold the lot a while back now

 

Hi Hamish,

I sold my last IP in OCT and pretty much reduced my home loan to minimal, so I'm starting from scratch but I've doing allot of reading, research and here are my thoughts

Most developers have bought land a longtime ago, and the only reason why prices are going higher in the apartment space is due to materials going through the roof for new developments.

I think it's a bit and miss with apartments

 

Fairly recent purchase. I’ll certainly be hitting up the PC’s for info once ready to develop!

 

My thoughts exactly regarding cost of materials having an impact on new developments. The projects likely don’t stack up, though by the time the demand is there, there may not be enough supply in desirable inner city areas like this. That’s my gut feel anyway!

Congrats on getting your loan down to minimal.

 

I've got my eye on a PPOR renovator in the bayside area but slightly second guessing with all the FUD, whether I hold off for a few months.

Im a stickler for timing and getting a decent deal.

The market definitely flattened out in December, and unfortunately this Auction is this Saturday so no real time to form a sample size of what the market is doing on return in 2022.

100+ groups through this home though.

If I take a 5-10% loss on it this calander year, Im not too concerned, as there's going to be 12 months of reno's and Im likely going to stay in it for 5 or so years.

 

Is there any chance near Thomoastown train station close to shopping stretch?

There are another 4 townhouses close to my PPOR.

 

4 Cedar
Was my deve

 

Agreed that the next few years will be nice and slow in melb and syd. Hopefully a nice 10pc retraction so I can accumulate more.

 

Thanks that’s a great work.