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Peter Spann’s Property Investment Melbourne – Where to Buy

All the indicators point to the early stages of a boom for property investment Melbourne.  Canny investors can take advantage of lower prices now and ride the wave to the top.

 

Hot spot performers are keeping Real Estate Agents on their toes and excitement is starting to come back into the market with double digit growth in key suburbs.

Melbourne didn’t suffer as badly as Sydney post GFC and even saw increases in 2010 and 2011.  2012 and 2013 were tougher years for Melbournian investors and they are likely to be outdone by their Sydney cousins again this year but there will still be good buying.

Prestige suburbs on the fast track

Prestige suburbs such as Camberwell, Toorak and Hawthorn had seen improvement in their prices by 10 to 15 per cent and may lag better value suburbs for investors.

Some areas in the inner bayside such as Garden City in Port Melbourne still remain  undervalued.  Homes were fetching a price of about $800,000.

Hot Suburbs include Affordable Choices

Melbourne hot suburbs are likely to include affordable Thomastown and Epping (house median price of $388,000, while units were priced at $296,000) where prices are proving to be popular with first home buyers.  Rents sitting at $330 (4.9%) per week on average look attractive as well.

The $500k to $750k market is likely to have strongest growth so consider suburbs like Newport (median price $668k) and Yarraville (median price $640k) considered undervalued by experts.

Houses Present Great Value

Melbourne’s rental vacancy in general is stable with demand for new houses high.  New constructions has started to trend up and this will have a positive impact on growth.  With house sales rising we could consider that Melbourne Property is now in a rising market.

Units prices and rental rates are not faring as well as houses with an oversupply currently in the market and demand soft.  This will not be helped by a strong increase in unit construction.

So generally, if you can afford it, houses present better investing, at least for the short term.

The Top 5 suburbs for median price growth over the past 12 months have been:

Sea Lake 47.5%
Glen Huntly 43.4%
Princes Hill 35.8%
Eagle Point 35.6%
Mt Macedon 35.2%

 

At the beginning of 2014 I released my “Peter Spann – Where to Buy Guide for Property Investment Melbourne.”

Let’s see how those area have performed…

 

Suburb Median
Price
3 Month growth
as at Sept 2014
12 Month growth
as at Sept 2014
Capital Gain on a$500k investment Gross Weekly
Rental Yield
Burwood $785,000 4.7% 7.8% $39,000 2.9%
Clayton $630,000 5.5% 11.5% $57,500 3.1%
Coburg North $550,000 3.2% 15.8% $86,900 3.8%
Collingwood $732,000 -1.1% 5.5% $40,260 4.0%
Epping $375,000 1.6% 6.1% $22,875 4.9%
Flemington $713,000 -0.7% 12.6% $89,838 3.7%
Footscray $600,000 7.1% 9.3% $55,800 3.7%
Glen Waverly $860,000 6.4% 17.5% $150,500 3.1%
Newport $698,000 1.8% 9.8% $122,150 3.8%
Reservoir $490,000 2.1% 11.8% $57,820 3.7%
Ringwood $581,000 7.7% 19.4% $112,714 4.0%
St Kilda West $750,000 8.7% 21.2% $159,000 4.2%
Sunshine $440,000 5.7% 12.8% $56,000 3.9%
Thomastown $391,000 0.9% 6.1% $23,851 4.5%
Williamstown $910,000 2.2% 4.5% $40,950 3.6%
Yarraville $686,000 1.7% 8.9% $61,054 3.7%
Average $636,937 3.59% 11.29% $73,513 3.79%

Source: Australian Property Monitors

 

The figures point to the early stages of a property boom.

Melbourne’s not quite performing like Sydney has over the last couple of years but it is looking more and more like it is on its way.  Now could be an ideal time to invest.

The average median price of a house in these suburbs was around $640,000, which, although reasonably expensive still quite affordable for most investors, almost half the price of my Sydney recommendations.

With some great affordable suburbs in this list it gives the Melbourne Property Investor lots of options.

The most remarkable figure in this though is the average capital growth on $500,000 invested, in this case $73,513.

So in other words if you had invested $500,000 into property across these suburbs (impossible I know but I think you’ll get the point) you would have gained more than $73,000 in capital growth.

More than the average wage

That’s more than the average wage in Australia – by doing nothing!  (apart from investing).

Considering interest rates are hovering around 4.5% and the average yield 3.79% this investment would have only cost you $4,800 in interest for the year!

Even if you had bought in 3 months ago you would still have achieved an average 3.59% growth – the capital gain on $500,000 invested would have been $17,950.

So when it comes to Property Investment Melbourne – Peter Spann say’s get in!

Profit From the New Property Boom

Find out about Peter Spann’s exciting new On-Line Property Investing Course Property Pay Day:

http://www.propertypayday.com.au/property-pay-day-2/

original-logos-2014-Jan-6759-713028

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Written by Peter Spann

Peter Spann – Film Maker | Director | Business Coach | Writer | Public Speaking Coach | Presenter | Investor.

© Copyright: 2014 Peter Spann – All rights reserved

© Copyright 2014 Peter Spann All Rights Reserved

 

 

 

 

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