With clearance rates well and truly established in the low 60% range, we turn our focus on which properties are worth buying. Most people who do not have to sell at the moment – won’t be. Those vendors that are putting their properties on the market are usually doing so because they are moving due to family or work commitments, or they are simply selling then buying (when exchanging properties it doesn’t matter what market we are in – what you lose on one you gain on the other side).
What this generally means is supply is low but bargains can be there if the property is good. As an investor the cheapest property in the area is not necessarily the best long term investment. However, buying whilst the market is depressed means you have the greatest chance of capital growth as the market takes off again. It is your choice of property that will be the key.
With an extra million people due into Melbourne over the next 12 years, property prices should rise very well. Although most of the 380,000 new dwellings that will be required will be built in new estate areas, the majority of the capital growth will probably be much closer to the CBD. Fuel prices are also beginning to take their toll on properties 25km or more from the CBD.
Areas that are close to the CBD with excellent transport facilities, good local cafes and restaurants, easy access to hospitals, major shopping centres and places to walk the dog or play in the park are going to be highly sought after. Access to educational facilities and community infrastructure are also components of highly sought after locations. Refer to our article on property selection in our “how to” series.
The choices you make now as an owner occupier or an investor will make a difference as to your asset position in the future. Why don’t you call for a no obligation meeting and come in an discuss some of the options that are available for home buyers.