Market Tips to Consider for a Long-Run Property Investment in Melbourne
The property market of Melbourne has been one of the fastest growing and consistent performers in the past few years. Despite the sluggishness in the real estate market, it stood strong because it was witnessing a soft landing. Though vendors haven’t forced people for sale, there is a drastic slowdown controlled by the regulators who have tightened the rules and policies on lending, especially to investors.
While the property values in Melbourne are declining, the values of new dwellings remain higher than they were five years. The best part is that the recent downturn has rendered a transformation to housing affordability. According to the latest report, CBA predicts Melbourne’s property prices to rise by 8 per cent in 2022, before dropping by 10 per cent in 2023. If you are looking for a long-term investment through a property in Melbourne, this is your chance. You can plan and evaluate your budget before making the final property investment decision if you are a first-time home buyer.
So, if you want to invest in the Melbourne Property Market, then consider the following tips:
1. Stay Updated with the Property Prices
In the last two years, Melbourne house values have increased at the fastest speed of all cities in Australia. However, the rates of auction clearance have continuously been high, but the market levels have diminished in Melbourne over the year representing strong market depth from a range of potential investors and home buyers.
In simple terms, the property prices in Melbourne will continue to be established by its robust population growth and the increasing interest of overseas migrants. It is good to stay updated with the current property prices in the market if you want to make the right decision.
Fun fact: The demand for new dwellings each week in Melbourne in 1,518 but the market is only supplying 1,019 new dwellings each week. This means the supply of new dwellings is shorter than the demand.
2. Average Rental Yield
The Melbourne rental market is strict with the falling of vacancy rates while the rents are slowly rising. This happened due to the shortage of rental properties in the hotspots of Melbourne while demand is constantly increasing. That is the reason why lower yield investors have been achieving high capital growth and the value of properties in Melbourne. So, do not forget to consider this aspect when investing money in the property market.
Smart property investors considered Melbourne property prices predictions before investing their money. You should also do the same before making the final decision.
3. Melbourne’ Infrastructure Development
Residents of Melbourne boasts a range of Australia’s most developed and well-connected infrastructure systems. The city has the best road, tram and rail infrastructure facilities. The high-end infrastructure facility is playing a major role in determining the growth of Melbourne Property Market. More and more investors are buying properties around the city and its surrounding suburbs. The city is in its booming phase, and this has allowed potential buyers and investors to buy a property for their long-run investment purposes.
In fact, the State government has been investing a lot on the infrastructure sector to enhance the economic, social and environmental outcomes in a short period.
4. City’s Economy
Melbourne is known as the second most populated city in Australia. It is also a cultural capital of the country- thanks to the Royal Exhibition Building and Melbourne Cricket Ground. The capital city of Victoria has a diversified economy which is classified into different sectors including manufacturing, trading, tourism, education, health and hospitality, IT, transportation and much more. You can also hire the property market experts to understand the pricing and other key factors.
It has the largest seaport across the country and is home to renowned financial institutions. With so much trading activities happening, it has become an ideal playground for potential investors, property buyers and people who are interested in enhancing their living standard. The best part about increasing economy is that more than 500,000 new jobs were created in the last ten years and this has increased the demand for rental premises
If you are planning for a long-term investment, then buying a well-researched property in the prime location of Melbourne can be an ideal decision.
Conclusion
If you are new to property investing in Melbourne, then these tips will help you a lot. You can also prepare a well-planned investment strategy to get the most out of your investment in the long run. Keep these tips in mind and make the most out of your decision.
