Investment property in Melbourne has seen some significant growth in the past several months. One reason for that is the high number of people moving to this city. Melbourne is one of the most livable cities in Australia and also the world. The city has so many traits that make it a fantastic option for an individual looking for a change. For one, the public transport is first-rate. Getting from place to place is not a struggle. The city is also the sporting capital of the region and living there means access to the Melbourne Cricket Ground. From Formula One to Football to Cricket, this is a city that sees all kinds of sports events all year round.
For someone looking for a place with a vibrant art scene, Melbourne is just it. The city is all about culture, and the National Gallery of Victoria is a favourite for art lovers. Residents can count on one music festival or another making its way into the city now and then. The nightlife is another motivation to move to Melbourne, especially for young adults with the zeal to enjoy its activities.
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The Rise of Melbourne Properties
Melbourne and Sydney are two cities that have largely impacted the rise of property prices in Australia. Data from Core Logic dictates that, since June 2012, prices grew by 44 %. Over the month of August 2016, the average dwelling price stands at $576,000 after a 1.5% increase in market prices. The substantial shift in population is one reason that property prices in Melbourne are on the rise and will maintain that upward trend.
The city is experiencing more demand than the construction is capable of supplying every year. There is also very little that the federal and state government does to provide housing. It means that the cost of apartments and house will keep rising. With sensible property investment advice, a developer can capitalize on the money making opportunities present.
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Investing in Melbourne Suburbs
When picking an investment property in Melbourne, it is vital to consider some fundamentals. As with other property markets, the same risks apply such as financing hurdles, choice of location and returns on investments among others. For a developer looking to dip their feet in the Melbourne market, financing is one of the biggest aspects to consider. Property developers should have a comprehensive cash flow strategy that will facilitate the construction of a housing project. Property development loans are viable solutions for developers looking for stable financing.
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The other consideration is where in the city to invest in. The high property prices in Melbourne have increased the need for more accommodation, but a developer must know which locations would bring the highest return on investment. Currently, the hottest suburbs in Melbourne are not luxurious or beachfront, which is not really surprising. Residents are in need of budget and middle-price range homes and apartments.
PRDNationwide named Fawkner, Sunshine West, and Heidelberg Heights the top there suburbs for investment. These are what are called “blue-collar suburbs.” One reason Heidelberg Heights made the list is the excellent infrastructure and amenities available. Besides La Trobe University, there are public and private schools, several hospitals and a train station. Areas that are close to Sunshine or Heidelberg are also experiencing a growing popularity because more people are moving there to be close to the infrastructure. The appeal of Fawkner is that buyers can take advantage of huge property blocks for prices below $600,000.
The city’s inner east and inner south has been on the rise for a while but is at the moment experiencing a cooling down period. Working class suburbs such as Noble Park in the southeast are set to experience hikes in prices. In the outer east, Mount Waverley, Ashwood, and Ringwood are predicted to enjoy incredible growth. People are moving from the inner suburbs mainly for affordability, making the middle and outer suburbs ideal areas to invest.
When choosing where to spend your construction finance in Melbourne, take the time to evaluate potential investments. Before even considering financing solutions, conduct research on the market trends. The property prices in Melbourne appear promising for developers for the next couple of years, but it is still crucial to be sure.