When looking into investing for the first time in the property game it can appear very daunting. There is no shortage of technical jargon as well as endless figures that don’t really mean all that much to you. One of the first ways to narrow down your search is to decide on the type when you buy property in Melbourne.
Houses are going to be the first thought for most buyers. You probably spent your childhood in a house with a big backyard, and have fond memories of it. After all, isn’t owning a house part of the Australian Dream? After doing even some brief research, you will quickly discover that buying a house in metropolitan Melbourne is no easy feat, and is often simply out of the question for first time buyers. That being said, if you do have the means, then it is a reliable investment choice. Detached houses are always in vogue, and are only going to become more valuable as the population grows and the city is forced to build upwards instead of outwards. House prices have jumped over 10% over the last 12 months in Melbourne compared to only around 3% for units. New homes may tempt buyers with their savings schemes, however are generally in much lower demand than more traditional housing. When looking to rent out, high demand is the goal you are striving for. When there are people competing to stay in your property alone, then you can start charging a higher rent.
Modern families and couples value property very differently to ten years ago. As Australia’s cities continue to expand, we are suddenly faced with bustling cities that begin to rival European or American metropolises. We are no longer tied down to the largely outdated idea of suburban life, and many are moving in and up, trading backyards for balconies with a view overlooking the city below. Apartments make fantastic investments because they are an absolute breeze to tenant. If there are any problems whatsoever with your tenant it will be a matter of days before you find another. Of course, initial costs are much lower and so are prime investment targets for first timers. Inner city skyscrapers have skyrocketed at an alarming rate, and will likely continue to do so with the inner Melbourne population expected to double in the next twenty years. Well built, higher end apartments in this area will remain in high demand. With an estimated 40% of inner Melbourne apartments being less that 50sqm, this makes the remaining larger areas hotly contested.
Commercial and industrial properties are a whole new ball park. Inexperienced investors probably wouldn’t even think about this option, and that is probably for the best. These are considered higher risk with greater fluctuation when compared to residential investments. This risk directly translates to banks being more hesitant to give loans. Plus, investing in these types of properties typically is done with different goals in mind, particularly focusing on portfolio expansion rather than capital growth.
Bayside properties and south eastern Melbourne are considered rather profitable. Here there is a good mix of both apartments and homes, both owner-occupied and rented out. This is dramatically different from the city, where most are renting apartments, or the affluent eastern suburbs, where most are families living in their own mortgaged properties. By far and away, suburbs that border the CBD but are not in it, as well as bayside areas, consistently experience impressive growth. These locations are close to amenities and careers in the city, but still have their own space. They also have their own local scene of shops, cafes and restaurants that offers a more authentic flavour when compared to the bustling CBD. Please get in touch with Bid Rhino to chat further about tips to Buy Property in Melbourne.