Newsletter - Inner Circle February 2017
Welcome to the latest news from the Property Mavens team.
Fresh off a weekend with very strong auction results, it’s clear demand for property in Melbourne is unwavering.
Saturday was reportedly a record day for February auction volumes, and according to CoreLogic the preliminary clearance rate was 79%, up from 75.7% the week prior.
It’s being described as boom conditions, and for good reason.
Melbourne has been recording strong growth for some time, with growth over 2016 reaching 13.7% and 2.4% over the past quarter according to CoreLogic, and the outlook for 2017 sees no end to the buoyant conditions.
Since prices are set to keep heading north, let’s take a look at Melbourne’s northern suburbs.
Entry-level buyers looking for affordable opportunities in this market would be wise to turn their attentions to often-overlooked suburbs, starting with Pascoe Vale, just 10 kilometres from the CBD, and neighbouring Pascoe Vale South, Oak Park and Glenroy.
Other suburbs to consider include Reservoir, Rosanna, Bundoora and Viewbank, slightly further from the city.
The median house price for all is under $1 million and most sit between $600,000 to $800,000, with some opportunities at a lower price point. Depending on your budget you can choose from houses, townhouses or villas.
With median house prices rising by around 7% to 8% these suburbs are growing fast but there’s still more growth to come as gentrification and generational change continues. So while they’re affordable now, this may be short-lived.
With forecasts that Melbourne’s population will double by 2031, connectivity is going to be crucial and suburbs like Pascoe Vale will tick the boxes on this front. It’s in close proximity to the city, with easy access through arterials including CityLink, connecting to the Tullamarine and Calder Freeways, and multiple forms of public transport.
It’s easy to get caught up in a rising market so while Melbourne is growing remember that not all property will rise in value equally, and buyers must always be prudent in their property selection. Any property you buy must have the right attributes for growth, including proximity to amenity and public transport.
In 2015, we chose Melbourne’s north, with all its potential, as a prime spot for one of our clients looking for his first investment property.
Since it was his second foray into the market, this busy local investor wanted guidance in finding the best – and a low-risk - opportunity for capital growth within 10 kilometres of the CBD.
After just five weeks - and less than 10 hours of our client’s time – we successfully acquired a two-bedroom renovated duplex on 300sq m in Pascoe Vale for a price significantly under our client’s tight budget.
We secured the property for $470,000, some $50,000 below market value, purchasing below the vendor’s reserve at auction.
But the best part is that in just 14 months our client saw a 17% jump in the property value – more than the average annual growth in the suburb!
Following the success of this investment he’s now preparing to have us buy the next property in his portfolio by leveraging off the equity earned since this purchase in 2015.
If you want to invest or buy the right home for your budget, click here to book a time, or call us for a chat about securing your financial independence.
Property Mavens - Smart Property Buying