Why the Melbourne property market should be accessed now
Melbourne is a great city that is growing into a leader of the Australian economy, and further growth is predicted.
In the 2014-15 City of Melbourne Annual Report, Lord Mayor Robert Doyle stated that as investment continues to be focused on community events and building a closer populace, Melbourne is bound to grow.
The Melbourne property market is growing, and investing or moving into the region could be a shrewd financial move. Employing a buyer’s agent in Melbourne will set you on the best path to making the right decision entering the property ladder in the city.
Suburbs around Melbourne are showing strong growth in values. Box Hill, located east of the city centre, is predicted by Smart Property Investor (SPI) to have annual median growth of 81.22 per cent over the next three years. Over five years that figure drops to 64.29 per cent, which is still an enormous period of increase, however the suburb does not show great rental yields, with houses sitting at just 1.79 per cent.
The median house price in Box Hill is currently $1,380,000, and as a piece of real estate that is not subject to extreme and instant fluctuations in the market, property around the city could be a good investment. Knowing what to look for around the city however, can sometimes be a little more complicated when it comes to suiting your exact specifications, and a property agent can step in to assist.
What to look out for, and how to buy
The number of houses sold at auction in Melbourne is the most in the country, with only Sydney and Melbourne coming close behind.
The number of houses in Melbourne that sell at auction is comparatively very large, 31.9 per cent of all houses sold in fact, reports CoreLogic. That rate is the highest in the country, with only Sydney and Canberra coming within 2 per cent of the figure.
The median house price at auction in Melbourne is $835,000. That number is only the third highest in Australia however, behind both Sydney and Perth. A greater number of houses sell at auction in the city, however they do so at a lower price than in other areas, which is great news for property investors. The fact that auctioning in Melbourne is so successful, means taking advice from a buyer’s agent in their specialty area can help you to come away with the property that you have your eye on.
A property investor will likely have different requirements for their purchase. For example a suburb just north of Melbourne, Doreen, has a gross rental yield of 5.53 per cent for a unit, which has a median price of just $315,000 stated in an SPI report. Close to the city and on a train line screams opportunity, and getting into the market early and with the right knowledge is an easy way to add value to your portfolio. Therefore a suburb such as Doreen would be much more suitable for an investor looking at a rental property than Box Hill.
When you’re looking at buying in the city, it pays to have a great auction strategy. Employing a buyer’s agent could well be the best way to go about this. St George Bank found that 62.1 per cent of people surveyed did not have a clear strategy in place when they bid at auction. What’s more, 56.8 per cent of people stated that they missed out on a property during the bidding process. Removing the emotion from the room by having a professional represent you is a great way to give yourself the best chance of securing your next Melbourne property.
Why use a buyer’s agent?
A specialist Melbourne buyer’s agent understands the market and can meet your specifications as closely as possible in most cases. Whether you are overseas or domestic, getting a local on the case is a major key to selecting the best property for you.
Property agent’s aren’t just available to represent clients that do not want to participate in the auction itself. If you are overseas and cannot be in the room then having a professional on the phone at the auction that understands exactly what your price ceiling is and also how the rest of the bidders are operating is a sound decision.
“Many buyers, if left to their own devices, get scared off by aggressive bidders and stop bidding prematurely while many others derive confidence from a competitive auction and end up bidding well above their limit,” said Veronica Morgan, a co-host of “Location, Location, Location” on the Lifestyle Channel.
The City of Melbourne Council Plan 2013-17 lists economic capital as a major part of its development strategy in the next two years. For an investor looking to get into the market, that can only be good news. People seeking a home can also take confidence in the fact that the strategy also incorporates natural capital by way of open spaces and clean air, meaning that living in the city will become more and more attractive.
Talk to a buyer’s agent from Cohen Handler today and see how they could help you to make the right choice moving into the city.