VIC Why is nobody talking about Melbourne?

Still strong demand

News

 

Time will tell, however I personally believe Melb is the safest property market moving forward as long as you stay in the bread and butter areas that have good infrastructure and close to transport hubs.

I will continue to play in this market, lower end developments moving forward.

There is strong demand from FHB. Immigration is highest in Australia and Melb middle ring 15-17 km is cheap, cheap, cheap compared to some States in Australia.

Investors are jumping to Brissy, and are totally ignoring the gems in Melb, no idea why this has happened. I don't believe Brissy has the strong fundamentals that Melb has. Anyway, happy to be proven wrong, and just my opinion.

Two years ago I would not be selling OTP townhouses in Thomastown.

I believe it will be FHB market dominating the market and to a degree investors are also interested in this product because its cash flow positive when you consider depreciation.

MTR

 

Can any of you Melb gurus please recommend me a local conveyancer?

Looking at a few around Casey LGA

 

I used Confident Conveyancing 0419 264 750- husband and wife team they were great. All went very smoothly.

 

According to AMP, there was 1479 Listed Auctions, 70% clearance rate.

That is a LOT of auctions.

https://www.homepriceguide.com.au/saturday_auction_results/Melbourne.pdf

 

There were lots of strong results at the auctions near me. I think prices are still increasing where i live.

Anyone know what SN means in the results column?

 

We just bought in Upper Beac. We're not really sure whether it was a good buy or not. More a ppor type home and most demand seems to be around traditional Casey suburbs along the trainline. The main reason for buying was everywhere else had already moved! This part of upper beacy was more or less the same prices as 2010.

It's a 4bdrm, 1/4 acre block 300m from pubs/main st/public transport/school/kinder, not sure if it will grow as it seems "out the way" from the investment driven market. But we found it incredibly hard to justify paying 450k for a house in Narre Warren and Bemersyde estate which were under 350k less than 2 years ago, and under 300k in 2010. After living in the area and knowing it well for 20 years. We picked this one up for just over 500k, while all those now 450k+ homes in Narre/Berwick around the 280k mark back in 2010. Bottom line is it should achieve over 500 a week rent, if it never grows then at least it's effectively positive at current rates!

Data shows Upper Beac grew well over 30% in the last year alone, there's only 800 or so homes in the suburb and I believe less than 20 sold these last 12 months making it hard to judge growth. The market there is hot supply is tight and most buyers are currently spending in the 800k+ range, and importantly rental demand is incredibly strong with there usually being no homes available, they get snagged up within days.

Hoping we do well!

 

Reservoir does seem to be growing really well. Was looking at some new 2 bedroom units there for around $362k and the rent yields seem quite reasonable in the area. Have been looking at fitzroy north also

 

Sold after auction perhaps?

 

KEY: S - property sold; SP - property sold prior; PI - property passed in; PN - sold prior not disclosed; SN - sold not disclosed; NB - no bid; VB - vendor bid; W - withdrawn prior to auction; SA - sold after auction; SS - sold after auction price not disclosed. N/A - price or highest bid not available. br - bedroom(s); h - house,cottage,villa, semi,terrace; u - unit, duplex; t - townhouse; dev site - development site; o res - other residential.

 

what type of property that is suggested best for high yield rental in this 15km ring out of Melbourne CBD ?

Is it town house or does it have to be 4 bedroom house ?

 

However they typically get better gains due to the larger land component.

 

Not necessarily this is another myth, it will come down to timing and whether there is a demand for this product.

I recall buying in Melb 2008 when inner city units were going gangbusters, they were outperforming houses, it was about timing and this product was in demand and short supply.

If you can add value to land then we are talking about a different beast, in other words its land that can be developed.

 

Ah I see,

Thanks @The Y-man, @Big Will and @MTR

Coming from Sydney NSW perspective, I always think that it has to be a house with large land components for a suburb outside the 15 KM ring of the CBD.

I guess, that's not the case in VIC outter ring suburbs.

 

Interesting link in The Age today testing the old adage "property doubles in value every 10 years".

Click onto your suburb to see if your suburb's median value has doubled in 10 years, a couple of suburbs have tripled.. every Melbourne suburb is in the list. Enjoy.

http://www.domain.com.au/news/the-m...e-prices-doubled-in-10-years-20151021-gkfdlq/

 

Thanks for posting. This is very interesting. I bummed out with a lousy 91.60% growth

GROWTH 91.60% - Your suburb hasn't made it in ... yet​

 

Where I live, the zoning in a few of the areas is for townhouses, so what we are seeing is everything beachide of the freeway, which has an older (and sometimes not even older) beachhouse on it, is being sold and promptly bulldozed for townhouses.

Bloody stupid humans; we are destroying the whole attraction of why folks want to come to our beachside suburb and its charm; with a new concrete jungle.

So it is the case in some outer suburbs.

 

There's some interesting patterns. Outer 'development front' areas with a high proportion of expensive new housing did very poorly. Compare Williams Landing vs Hoppers Crossing or Point Cook vs Seabrook. The former both had exceptionally low growth rates. But then it's academic since there would have been almost no established housing there in 2005, whereas Hoppers and Seabrook were well settled. Such outer areas with a lot of established housing did much better.

Location is not everything provided an area is relatively close to the CBD. Eg the excellent performance of Laverton which is basically closed down shops around a new but bleak train station on the edge of an industrial area severed by a freeway.

Once you're in a approximate location the prestige of a suburb can have little impact. Eg compare Heidelberg West with Heidelberg Heights and Heidelberg proper. No significant difference. There were some bigger differences with the three Frankstons though, with the most handily located doing the poorest.

 

@Tekoz, i'm also a Sydneysider. For the purposes of yield, given a choice of house on land vs. townhouse I'd generally go for the townhouse. Substantially lower purchase price but only slightly less rent. But you can do the calculations and it may work out different for Melbourne suburbs.

For the purposes of long term capital gains I'd choose to buy an established metropolitan house on land (and big land if I can get it), close to transport or some other growth drivers etc.

Personally of those options I'd buy a well located house on big land as long as the holding costs can be covered.

Btw. I doubt Melbourne is the place to be if you are really looking for strong yields. There are better places for that.
I did however read that it might be the best city in Australia for the next 12 months for capital gains though... but its a speculation... or comment I read from one commentator.... I don't have a crystal ball. It may be true.