Reaching new heights - Inner Melbourne

[jingo]

Any idea what’s driving this market higher?

Hi pski,

I can't put my finger on exactly what's driving the Melbourne property market at the moment. Although in my reading over the past few months, many commentators have mentioned that there will be an upswing in property prices in Melboune during 2007-2008. (Seems this is currently occuring). Some of the general reasons I have read for the attraction to the inner suburbs and therefore the increase in prices are:


1) There is a shortage of properties on the market in the inner suburbs. So the demand for properties in the inner areas is outstripping supply.

2) Very low vacancy rate, meaning the rental returns for investors are gradually increasing. This may be encouraging more investors back into the market.

3) I understand that the stamp duty rates have changed slightly too, but I don't know all the details. I wouldn't imagine this would have a great effect on the property prices. Certainly not to the extent of paying $100,000 over the quoted price which has been achieved at many auctions recently in Melbourne.

4) More people wanting to live in the inner areas due to the rising cost of fuel and travelling costs? (This line of thinking is pushed by the media a fair bit, but I don't really know how true it is).

5) Share market at an all time high, and investors are moving some of this money back into property.

I'm sure there are more............

 

[Twitch]

Any idea what’s driving this market higher?

Reasonably strong Vic economy
Strong immigration into the state
Strong sharemarket
Wages growth

In other words I don't know

I've got this theory that having held off a long time, Gen X are finally having kids and driving the OO demand up for traditional family homes in nice suburbs.

 

[traveller]

Irrational exuberance i will say...

Many employees have not gone thru a job market slump and they are borrowing to the hilt thinking that this will continue. It may for some time but it has to roll back as well...

 

[ozi]

Any idea what’s driving this market higher?

I think one of the drivers would have to be shortage of stock. It all comes down to supply vs demand. At the moment there is more demand than suplpy. Whether this will continue throughout the year I wouldn't know.

Regards,
Ozi

 

[ozi]

Wow Ozi! Seems that the price increases in the Melbourne market are gradually spreading throughout the suburbs. I know the Eastern suburbs have been hot for quiet some time (since last year). Did you manage to buy anything Ozi??

Hi jingo,

Yes the market has been rising since mid-late last year in the areas I'm looking at. It has really picked up since the start of this year though. I managed to purchase one. I'm looking for another one but its getting more and more difficult. Hopefully the rents start rising a little quicker to improve yields.

Ozi

 

[aussierogue]

Ozi

Amazing story Ozi. Can you guide the type of house it was.

Thanks

 

[jingo]

Hi jingo,

Yes the market has been rising since mid-late last year in the areas I'm looking at. It has really picked up since the start of this year though. I managed to purchase one. I'm looking for another one but its getting more and more difficult. Hopefully the rents start rising a little quicker to improve yields.

Ozi

Good thing you got one Ozi. Hopefully you will find another one soon.


Regards Jason.

 

[ozi]

Amazing story Ozi. Can you guide the type of house it was.

Thanks

I must admit, the property was a rare one for the area. Its a large period style weatherboard on a huge block. It had a frontage of about 20 metres and roughly 670sqm in size. This in itself is quite rare for the area and being on a quiet picturesque street definately added to its appeal! So $517k and un-renovated, hmmm makes you wonder

Here is the property:

http://www.burnham.com.au/pol/prope...sl=2039&stylename=2039_site&f_Category=ticker

Cheers,
Ozi

 

[aussierogue]

Remarkable

Ozi thanks link - But I think you are mistaken - must be renovated. Thats one of the finest examples of modern interior design that ive seen for some time. Subtle tones, lots of curves - very Manhatten .

 

[Bandita]

I must admit, the property was a rare one for the area. Its a large period style weatherboard on a huge block. It had a frontage of about 20 metres and roughly 670sqm in size. This in itself is quite rare for the area and being on a quiet picturesque street definately added to its appeal! So $517k and un-renovated, hmmm makes you wonder

Here is the property:

http://www.burnham.com.au/pol/prope...sl=2039&stylename=2039_site&f_Category=ticker

Cheers,
Ozi

OMG!! I've been following the market very strongly around this area, but have slacked off the past few months (wedding, reno - I need to get my priorities straight !!) - I remember seeing this property first advertised and pointing it out to Geoff as a possbilty - I CANNOT believe that's gone for $517k! (For those not from Melbourne, it's not the nicest area - as a renter I wouldn't live there - and a property like that, maybe around $350k last year?? (Yes Ozi?) We've realised we're totally priced out of Yarraville now - which last year we did have a bit of a chance - and now it's looking like Footscray too - WOW!

First time I've been priced out of an area I wouldn't even live in! Interesting!

Go Melbourne!

Cheers,
Jen

 

[ozi]

OMG!! I've been following the market very strongly around this area, but have slacked off the past few months (wedding, reno - I need to get my priorities straight !!) - I remember seeing this property first advertised and pointing it out to Geoff as a possbilty - I CANNOT believe that's gone for $517k! (For those not from Melbourne, it's not the nicest area - as a renter I wouldn't live there - and a property like that, maybe around $350k last year?? (Yes Ozi?) We've realised we're totally priced out of Yarraville now - which last year we did have a bit of a chance - and now it's looking like Footscray too - WOW!

First time I've been priced out of an area I wouldn't even live in! Interesting!

Go Melbourne!

Cheers,
Jen

Hi Jen,

I agree with you. Last year this property probably would have went for around $350k. The interest just wasn't there to push prices up so much. Thats not to say every single property in the area has gone up this much as this one is unique. But prices have definately moved.

Cheers,
Ozi

 

[Bandita]

Hi Jen,

I agree with you. Last year this property probably would have went for around $350k. The interest just wasn't there to push prices up so much. Thats not to say every single property in the area has gone up this much as this one is unique. But prices have definately moved.

Cheers,
Ozi

Another interesting thing in the area - our friends own a property in the "west" end of Yarraville - by the parks, etc - they bought theirs last year for $315k, old unrenovated weatherboard on 400m2 - not next to the village or transport (in my mind at least) - the one next door in similar condition just sold for $419k - they are so excited of course - I can't believe it!! Again, we're priced out of course now.......

Ozi - that property you were mentioning about 6 months ago on Castlemaine - I am kicking myself that you or we didn't buy it at the time!! Ouch! Silly over analyzers we are - could just have held it as it and made $$! Learning experience, eh?

Cheers,
Jen

 

[ozi]

Ozi - that property you were mentioning about 6 months ago on Castlemaine - I am kicking myself that you or we didn't buy it at the time!! Ouch! Silly over analyzers we are - could just have held it as it and made $$! Learning experience, eh?

Heheh yes that property would have done well but who would have known. If we could go back in time, I'm sure many of us wouldn't think twice before purchasing some of the properties they were over analysing at the time

Cheers,
Ozi

 

[jingo]

Go Melbourne!

Cheers,
Jen

Yeah, just pause for another month or two first so we can all catch our breath and buy some more, and then go like a rocket!!!!!

 

[TwoPlus]

WOW! ) ) Do you have a link to the realestate.com listing?

Thanks

Lindy



Oops - got exited and didn't read ahead!

 

[jingo]

Another One Under Offer!!!!

Just had a call from a REA regarding a property I was interested in purchasing in North Melbourne. The property was supposed to go to Auction on 19 May. Unfortunately for me the vendor has received an offer that would be suitable. I was asked to put in a counter offer before 5.00pm tomorrow.

I haven't got my stuff together yet, so I'm going to miss out!

I might add though that the agent originally had the placed advertised as $410+. That changed on the web site last night to $420+. She originally told me that it would sell for mid $400's. I managed to extract the approximate offer price from her. I said "just answer me this question, is the offer more than $500?" Her answer was "Yes".

So there you have it - if you are selling a property - you cannot trust your own agent to play by the rules, and not disclose information to prospective purchasers.

The property in question by the way is a 2 bedroom terrace home in reasonable condition.

I really wanted it

 

[jazzlobber]

jingo, are you willing to pay in excess of 500K???

 

[ozi]

jingo, are you willing to pay in excess of 500K???

Hey may have no choice but to do so if things continue the way they are going. Unless he looks elsewhere.

Ozi

 

[jingo]

Just to update you,

I missed out on the place in question. It ended up going for $550,000!!!!!! $140,000 above the quoted asking price - and its in a mixed zone.


Jizzlobber, I want to get a property that will appreciate very well. I think $500,000 would be the max I would want to pay.

Anway, the person who has bought it was desperate to buy apparently. An OO who had missed out several times before, and decided that she was going to have this place at all costs!!

What can I say?????

 

[ozi]

Hi jingo,

I'm just wondering what something like this property would rent for? I'm guessing the yield wouldn't be too crash hot? Is there scope to add value to this property, or would it be purely a buy and hold?

Thanks.

Ozi