Melbourne to run more

Discussion in 'Where to Buy' started by Deltaberry, 16th Jun, 2015.

  1. MTR

    MTR Bling Bling

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    Go you beautiful thing.... can't ignore Syd investors now jumping into Melb helping to drive this market up.

    MTR:)
     
  2. eltonsky

    eltonsky Member

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    My two cents worth. In general the low rental yields will certainly hesitate investors. However, many low end markets in Melbourne still have 4~5% yield for houses. The problem is in more sought after mid to prestigious markets which have merely 2.5~3%. This may result in some price consolidation in next year. However low end market will keep their momentum for another year or two, especially for another looming rate cuts.
     
  3. sash

    sash Member

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    Agree...I think the low end can still give you returns up to 6.5%..I just bought a H&L package for 303k turnkey + 10k for stamps and interest...I will get 380pw on this product. I am not giving the location till I buy a couple more. ;)

     
  4. windyzz

    windyzz Member

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    Sash that's slack :( :( :(.....
     
  5. sash

    sash Member

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    Yes...hold the press...just had a turn of events...I think I can put a 2 story on the block for $355k turnkey...only a 3x2x2 about 21sq....but 2 living areas and toilet downstair..with a 6 meter backyard instead of 4m..and also a good side yard!.

    Get this the rent is will be only $400....but end value of this in about 6-8 months is about 450k+....

     
  6. zed_kid

    zed_kid Member

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    So what's the consensus? Melbourne to run till end of 2016?

    I have a 3bed apartment in Toorak I want to sell, I don't want to get too greedy but also want to get the max for it. I would be pretty upset if I sold this year and it ran another 100k lol.
     
  7. hobo-jo

    hobo-jo Not a bear just a realist

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    They are around their long term average though...

    [​IMG]
     
  8. ross100

    ross100 Member

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    dont think Melbourne prices will be similar as Sydney, reason .. Sydney salaries are higher to Melbourne. i think it is running in parallel now.
     
  9. Mindmaster

    Mindmaster Brendon

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    Sash has given plenty of clues. If you are serious, you should not have too many problems researching where the H+L packages are.
     
  10. JohnHenry

    JohnHenry Mister

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    How come ?
    I've been going through Melbourne Property Expo in Sydney by Central Equity last weekend, they said that Melbourne will be the better place than Sydney for the next 10 years.

    This independent article seems to be supporting it: http://thenewdaily.com.au/money/2015/06/22/australias-best-worst-economies-revealed/

    But somehow, most of the people here says that it is in severe oversupply of OTP apartments at the moment.
     
  11. jerrybee

    jerrybee Member

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    Two things you're missing / "hidden" from that report:

    1) Most of that 76% growth happened between 2001 - 2011

    2) Past performance does not guarantee future performance

    10 years from now YES Docklands and Southbank will probably have matured and become great places to invest and live, like Pyrmont in Sydney (Pyrmont's high rises had a rough start too which many forget), but that's a 10 year wait. You could be doing much more with your money in that time.


    Holy moly. Alright I will totally disregard this report now. These are literally the two main Brisbane suburbs that I'm interested in!
     
  12. JohnHenry

    JohnHenry Mister

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    Yeah,

    For those two suburbs mentioned:
    Mount Gravatt and Sunnybank I was bit shocked today to see that it is reported as going down ?

    After browsing around in this forum and got some advice by the experts, those two suburbs are the good ones to invest in Brisbane with existing homes not the Fortitude Valley, South Brisbane or Newstead.

    I'm not living in Melbourne or Brisbane so I can only rely on news and this forum for the next great investment opportunities.

    So any more comments is greatly appreciated.
     
  13. JohnHenry

    JohnHenry Mister

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    Whoa, that's somehow against the property investment advice that I have been heard and received of not buying OTP for the high gain CG profitability.

    Are you not afraid or worry of the bubble ?

    Another supporting article from Kris Sayce:

    http://www.dailyreckoning.com.au/category/australian-housing-1/

    The Aussie economy has gone 24 years without a recession. So one is long overdue. And when it comes, it will be painful.
     
  14. jerrybee

    jerrybee Member

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    There is nothing intrinsically wrong with OTP. It's just hard to find a good one but they are out there.
     
  15. Jake Milne

    Jake Milne Buyer's Agent (Vic)

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    Completely agree with this. OTP isn't bad sometimes, it's just hard to find developements that have been built well, that aren't compromised in accommodation size, that aren't on busy roads or overdeveloped areas. There are a few gems out there and that can perform very well due to the high depreciation and yield often found in new properties.


    As far as Melbourne is concerned, it has been growing all over at a very fast pace for a few years now. More good to come as long as rates stay low.

    Will it catch Sydney?
    Doubt it. We have apartment oversupply in the city and plenty of land that can be rezoned on the outskirts. Sydney's CBD is already built up much more than Melbourne and there are geographical restraints (such as the Mountains / The Ocean) that are hindering new land for development. Also it's harder for Sydney to expand as the transport infrastructure is so poor (cheeky I know) because of it's geography and age.
     
  16. adz07

    adz07 Member

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    ...wouldn't Sydney also be higher then going by that logic?