Property investment has long been used as one of the most effective methods of developing wealth. The effectiveness of this method, however, is always going to depend on not only when you choose to invest, but most importantly where. At the end of the day, investing in property will only work to your advantage if you invest in the right place.
With that being said, you might be wondering if Melbourne is still the right place for you to invest in. And with all the unfavourable news and gloomy reports that Melbourne’s property market has been going through lately, it’s a fair question to ponder.
So, is Melbourne still a city I want to invest in? Well, I’m glad you asked, but unfortunately, such a question does not come with a “yes” or “no” answer. If only life were that simple.
As with all property investment, it’s going to depend on a number of factors.
It goes without saying that the most important thing you can do to prepare yourself for such a large commitment is… well, to be prepared! This is going to require a lot research on your part so you can start to think like an investor, live like an investor, breath like an investor, and ultimately, invest in the best property you possibly can!
Feeling overwhelmed? Don’t worry, I understand that property investment can be a little daunting, to begin with, but once you’ve done a little homework, you’ll be more than ready to strut your stuff in housing investment city! So without further ado, let’s get started.
Far from over
Yes, the Melbourne housing market has seen a slump in the past year. However, this is the first time it’s seen any drop in the market in around 5 years straight, during which time, Melbourne’s property market experienced nothing but significant growth and development. What’s more, the current decline in housing prices across the city might be a slight cause for concern at the present, but this should not be considered a reason to expect any kind of cataclysmic crash or a total market breakdown. Melbourne is not out of the game yet.
Let’s take a look at some of the factors underpinning the property market:
Melbourne’s Economy: – Very Strong
Jobs Created: – Approximately 72,000 in the past year
Population Growth: – 35% of Australia’s overseas migrants
– Highest population growth in Australia at 2.3% in 2017
– Expected to be Australia’s largest city by 2031
Median House Price: – ? of Melbourne suburbs has a median house price of $1 million
– 9/10 houses within 10km of Melbourne’s CBD have a median house price of $1 million
– 50% of houses within 20km of Melbourne’s CBD have a median house price of $1 million
So, looking at the numbers, it’s not hard to see that Melbourne is still a serious contender for reliable property investment.
OK, so if Melbourne is still a good choice to buy up property for the purpose of investing, then where are the most premium areas to put down those housing roots? Let’s take a look.
According to the property experts, Fitzroy, Northcote, Collingwood, and Abbotsford are always a good choice for anyone looking to buy in the Northern suburbs. Such areas are very close to the city centre, are a melting pot of cultural and artistic diversity, and sport a brilliant transportation system to boot.
Whilst further out, the dynamic and multicultural suburbs of Coburg and Coburg North are predicted to drastically rise in popularity and are likely to see a significant increase in value.
The highly sought-after neighbourhoods in the green and leafy Eastern suburbs have seen solid growth over the years, and it is now more difficult than ever to find any areas untouched by the continual boom.
However, those in the know are saying that you should set your sights towards Kew East and North Balwyn, as these areas are still considered to be two of the more undervalued suburbs in Melbourne’s Middle East, and hence likely the next two to hit the limelight.
Some might think that past Prahran and St Kilda, there isn’t much to look out for in the South. However, affordable suburbs such as Bentleigh, Seaford and Mentone are currently beginning to see an increase in housing prices, along with Aspendale and Edithdale.
Real estate expert Sam Chisolm believes this to be due to the Frankston train line, which is expected to be the key predictor for the housing price growth in the Southern suburbs.
Tried and true areas such as Yarraville, Newport, Seddon, and Williamstown are not going to let you down when it comes to finding a reliable investment property.
If you’re looking for something a little more affordable, however, suburbs like Sunshine, Maidstone, and Albion are all expected to be due for a boom this year and likely those to follow.
Footscray will also be a front-runner and continue to see growth moving forward as it’s local capital is currently being boosted by the rise of the Docklands as Melbourne’s new business district.
So there you have it. The perfect start to your new (or continuing) adventure into property investment within the metropolis that is Melbourne. This is by no means the last of the research you’ll need to ready yourself before taking the plunge and snatching up that dream investment, but hopefully, this has put Melbourne in a slightly kinder light since the barrage of bad news.
So now it’s time to get out there, go and explore these areas, talk to the locals, see first hand how liveable an area actually is, and always consider its potential for growth.
Mike Heathcote is the founder of Building Masters Inspections and a veteran builder with decades of experience. Utilising his industry knowledge, Mike and his team of experienced Builders provide an Inspection Service offering expert opinion on the true condition of buildings, including estimated repair costs, helping home buyers find their perfect property, Melbourne wide.