Hey Jake, you do realise that St Kilda, St Kilda West and Elwood are NOT in any of the top 2013 growth Unit LGA's you've mentioned here? Why would bother mentioning those growth rates and then completely ignore it?
Your top 5 suburbs in Melbourne -2014
- Thread starter MelbInvester
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Hey Jake, you do realise that St Kilda, St Kilda West and Elwood are NOT in any of the top 2013 growth Unit LGA's you've mentioned here? Why would bother mentioning those growth rates and then completely ignore it?
I'm sorry simtr if I've explained this poorly, just to reiterate I said to MRCCON:
"...let me show you why those suburbs I've mentioned are still the better."
You can see in that post, there are forecasts in a table provided. So while last year's performance wasn't as good as the other LGAs, looking forward there are three clear standouts that have been identified, which is why they were included despite not being in the respective LGA's.
I've tabled of all of the forecasts of virtually every suburb in Melbourne and 8% for units is the highest prediction. There are a few other suburbs that tip into this upper echelon too.
Otherwise, in my opinion, investors may want to research last year's performers.
Also, it's important to understand what the market wants in those areas. Apartments aren't the best performing assets for suburbs like Brighton, Hughesdale or Burwood etc... So it's important to clarify, for those that are looking at apartments that there are better areas.
With that said I've seen, in person, how villa units have grown very well over the last year in Brighton, Hughesdale and surrounds...
These are only suggestions though, people should conduct their own research. I'd love to hear what your top 5 suggestions are too
Hope that helps, please let me know if still unclear
"...let me show you why those suburbs I've mentioned are still the better."
You can see in that post, there are forecasts in a table provided. So while last year's performance wasn't as good as the other LGAs, looking forward there are three clear standouts that have been identified, which is why they were included despite not being in the respective LGA's.
I've tabled of all of the forecasts of virtually every suburb in Melbourne and 8% for units is the highest prediction. There are a few other suburbs that tip into this upper echelon too.
Otherwise, in my opinion, investors may want to research last year's performers.
Also, it's important to understand what the market wants in those areas. Apartments aren't the best performing assets for suburbs like Brighton, Hughesdale or Burwood etc... So it's important to clarify, for those that are looking at apartments that there are better areas.
With that said I've seen, in person, how villa units have grown very well over the last year in Brighton, Hughesdale and surrounds...
These are only suggestions though, people should conduct their own research. I'd love to hear what your top 5 suggestions are too
Hope that helps, please let me know if still unclear
Thanks All,
Love to hear others suggestions.
MI
Love to hear others suggestions.
MI
Hi neeko, I think this is a classic comparison by most people but personally I don't look at it like you do. First of all a brand new property is always going to cost a fair bit more coin than an old property. There are also things like target population, location etc.. that determines what is more desirable. So having an older bigger house on a big block of land might not fetch anymore money than a newer smaller house on little land depending on the people looking to buy. Just like your situation, someone obviously finds brand new townhouses desirable and is happy to pay good money for one around where you live.
There are also some situations where an investor will prefer to purchase a new townhouse or unit over a rundown house on a big block of land. They might not want the higher maintenance and holding costs generally associated with old houses on big blocks of land, and the lower rental yields with older properties are unattractive. Not all investors are hands on or have the cash or want to spend it on renovations, extensions, subdivisions etc. Also people tend to forget the hefty land tax, so the sums just don't quite add up for some investors.
I say the mantra "Land appreciates, buildings depreciates" tends to mislead people into thinking that only houses on big blocks of land will grow in value which we know is not true just by looking at historical figures.
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Hi neeko, I think this is a classic comparison by most people but personally I don't look at it like you do. First of all a brand new property is always going to cost a fair bit more coin than an old property. There are also things like target population, location etc.. that determines what is more desirable. So having an older bigger house on a big block of land might not fetch anymore money than a newer smaller house on little land depending on the people looking to buy. Just like your situation, someone obviously finds brand new townhouses desirable and is happy to pay good money for one around where you live.
There are also some situations where an investor will prefer to purchase a new townhouse or unit over a rundown house on a big block of land. They might not want the higher maintenance and holding costs generally associated with old houses on big blocks of land, and the lower rental yields with older properties are unattractive. Not all investors are hands on or have the cash or want to spend it on renovations, extensions, subdivisions etc. Also people tend to forget the hefty land tax, so the sums just don't quite add up for some investors.
I say the mantra "Land appreciates, buildings depreciates" tends to mislead people into thinking that only houses on big blocks of land will grow in value which we know is not true just by looking at historical figures.
The value you gain by owning a big block of land isn't shown in historical figures because you can't compare the 1000 Sqm block jo bloggs bought in 1990 because there arnt any around any more. Now jo bloggs has two blocks of 500
Maybe he should of just been lazy and bought a townhouse ....
Maybe a better analogy would of been that now he owns four townhouses
Hey Jake,
I think your advice is based on sound research and principles and people can do a lot worse, and some people may do better. Considering it's just a forum, all your advice is a good starting point. Totally agree with your first paragraph.
A question to you on the Manningham LGA (which can be applied to other LGA's), to do with sub-markets - How do you account for predictions for houses in suburbs popular with local and foreign Chinese buyers that lie within their relevant zoned school. After selling his PPOR several months ago my mate is having trouble finding a new PPOR in the Manningham LGA, constantly being outbid in the $800,000's.
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jake advise is probably correct - in the long term australian buying market but if you apply the sub markets like the doncaster, doncaster east all those manningham areas where they have all those ethnic groups like the mainland chinese. i know a guy currently building 15 houses on the go and sold every single one of them and just waiting on completion as suburbs like this has those chinese buyers buying in like it was their last day on earth. Similar to brighton although i wouldn't say elwood is one of them.
What's everyone's thoughts on sunshine area. And compared to the likes of thomastown/lalor. I'm looking for a deve site in Melbourne and sunshine strikes me with a lot of potential. Brim bank council looks to be changing the zoning densitys. Victorian government is injecting some money to gentrify the area.
Close to the CBd, approx 14kms with good public transport. Hospitals and education facilities nearby. Very low median considering proximity to CBd aswell.
Any local opinions on this area?
Cheers
Blair
Close to the CBd, approx 14kms with good public transport. Hospitals and education facilities nearby. Very low median considering proximity to CBd aswell.
Any local opinions on this area?
Cheers
Blair
