Victorian/Melbourne Property Market

Melbourne's vacancy is hovering around 3% ...it's not that bad.

Rents have increased by almost 10% in the last 12 months.

Where?

My rents have slipped on properties that had tenants vacating. This includes better areas such as Caulfield and lesser/outer areas such as central Frankston. Letting times also at record levels.........five weeks plus. It took around three weeks before even the first of the dodgy applications came through in both areas. Something I've not experienced before, not even in the early 90's


*yield varies from 3-6% in Melbourne respective of property type, leverage and area.

Unless investors are manufacturing growth, from where I sit, Melbourne is sideways and shall be so for a while longer. Yields are rubbish compared to what I'm seeing in S/E Qld. I still have significant exposure to Melbourne and with the benefit of the retrospectoscope, should have sold down a few last year along with our PPOR.
 
Personally i am very confident that 2013 will be a growth year for melb in established areas outside of the cbd. Newer suburbs and city apartments still have pain left in my opinion.

I predicted the bottom of the market in oct 2011 and put my money where my mouth was by doing the big upgrade at the time. Since then the market has bobbed along but there is def signs of life in Bayside and other parts. Properties are selling much quicker and for reasonable amounts.

As for rental vacancies I don't have one in my melb portfolio but I don't have any properties in the CBD or in newer suburbs where the vacancy rate is higher.

It is just so cheap with the rates so low, anyone who has been holding off buying a ppor I think the time is now. 5 year rates well under 6% is cheap cash.

Anecdotal evidence of the market in bayside is a leading agent I know in Sep last year at auction he was 2/14 and Oct this year currently 13/15, confidence just seems to have returned around here after we had the correction stage we had to have.

Don't think there is any need to rush in an buy ip's as a don't see a big growth period but I do see small steady growth for a while and if i was out of the ppor market I would be getting back in now.

Cheers
 
Those familiar with my expectations on property on a national level would know I am not expecting a crash, but I think Melbourne/Victoria (alone) could be set up to see one:

I think 30% off prices over 3-4 years is a definite possibility.


Melbourne and Sydneys properties prices the strongest over the last 2 growth periods, including Melbourne growing at around 13% since the beginning of this thread.

Would that mean Melbournes prices have to crash by 38% in 1-2 years for hobos thoughts to materialise?:eek:


Melbourne, Sydney lead winter house price surge

RP Data research director Tim Lawless says surging property values in Australia's two biggest cities have been a feature of the property landscape for more than five years.

"Over the latest growth cycle we have seen Sydney dwelling values increase by 27.2 per cent and Melbourne values up by 19.5 per cent," he said.

"Sydney and Melbourne were also the strongest performing cities during the 2009-10 growth cycle.

"Since the beginning of 2009, we have seen values rise by a cumulative 50.1 per cent and 46.1 per cent, respectively, in Sydney and Melbourne," Mr Lawless said.


Read more: http://www.smh.com.au/business/melb...rice-surge-20140901-10atwd.html#ixzz3C44qwVJp
 
Yep got Melbourne dead wrong (so far, there's still time ;)), Perth dead right. Meh.

At least I have a crack, your past time seems to be digging up my old posts on the forum.
 
Yep got Melbourne dead wrong (so far, there's still time ;)), Perth dead right. Meh.

At least I have a crack, your past time seems to be digging up my old posts on the forum.

Not quite sure what you as a forum member since 2006 with 2600+ posts have actually had a crack at, as you tell it you bought a property with the idea of developing it but ended up selling without developing and not bought since.

Talking the talk may be your definition of having a crack, those that walk the walk are the ones that I define as having a crack.
 
Good to know I have such an eagle eyed follower & fan turk.

I'm neither eagle eyed or a fan just searched for an appropriate Melbourne property thread to post my comment and link to the article and the opening post was a good segue.

In getting Perth "dead right" could you tell me how you profited from talking the talk?

There has been no lack of advice on the Perth Market from the likes Westminter, Aaron Sice, MTR, and others to assist inexperienced investors.
 
Melbourne and Sydneys properties prices the strongest over the last 2 growth periods, including Melbourne growing at around 13% since the beginning of this thread.

Would that mean Melbournes prices have to crash by 38% in 1-2 years for hobos thoughts to materialise?:eek:


Melbourne, Sydney lead winter house price surge

RP Data research director Tim Lawless says surging property values in Australia's two biggest cities have been a feature of the property landscape for more than five years.

"Over the latest growth cycle we have seen Sydney dwelling values increase by 27.2 per cent and Melbourne values up by 19.5 per cent," he said.

"Sydney and Melbourne were also the strongest performing cities during the 2009-10 growth cycle.

"Since the beginning of 2009, we have seen values rise by a cumulative 50.1 per cent and 46.1 per cent, respectively, in Sydney and Melbourne," Mr Lawless said.


Read more: http://www.smh.com.au/business/melb...rice-surge-20140901-10atwd.html#ixzz3C44qwVJp
If this were remotely true, then my PPoR has gone up in value by roughly $500k since we had it valued at the final stage of building in 2010...yeah, right.

IT really shoits me how the media and various r/e bodies spew out the blanket statement that XYZ cap city has done X.

It all sounds fabulous, and no doubt several places have gone up.

I would venture to say that only a small section of Greater Melb has actually done terribly much - and as usual it will be the higher demand and higher priced areas nearer popular inner ring and inner city that the media and the REIV focus on.

Of course; they are quoting real Stats, - it doesn't take many sales in the higher end to drag the median up, whereas it takes a large number of smaller price range sales to do the same. Hence the Stats we see now. And median is all they ever quote.

Go out to somewhere like say; Pakenham, or some other further-flung cr@ppy house estate and see what a 3x2 house sold for this year, as opposed to last year.
 
I'm neither eagle eyed or a fan just searched for an appropriate Melbourne property thread to post my comment and link to the article and the opening post was a good segue.
lol yeah right turk, just like the other 3 year old thread you dug up of mine yesterday... just a coincidence too I'm sure :rolleyes: and the way you follow me around the forum like a lost puppy.

The first step to recovery is admitting you have a problem :D
 
lol yeah right turk, just like the other 3 year old thread you dug up of mine yesterday... just a coincidence too I'm sure :rolleyes: and the way you follow me around the forum like a lost puppy.

The first step to recovery is admitting you have a problem :D

What an odd post.

The subject of the old thread was about Politicians looking to alter NG.

http://somersoft.com/forums/showthread.php?t=70707

The subject of the new thread was about a Politician looking to alter NG.

http://somersoft.com/forums/showthread.php?p=1207817#post1207817

The new thread could quite sensibly have been added to the original thread.

My post "Same story different cast." referred to

Same story = Politicians looking at altering NG

Different cast = Different posters on the 2 threads, with the link to old posters adding to the new thread.

Why you have attempted to make my post about yourself I don't know, paranoia:D
 
Can't find the link atm but i read there's one going to auction in balmain nsw with foreshore views,accessing thorn..... something park?.From memory an 1867 weatherboard/shack and hasn't been lived in x amount of short years.Giving the state of the said prop,how as someone lived in it eg:say 6 years ago?

Anyhow in a good position,2 mill startup @ auction from memory anyhow,i could be wrong on some things mentioned without link.

Edit:link:http://finance.ninemsn.com.au/execu...p-set-to-fetch-2-million-at-auction.slideshow
 
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