Despite the economic downturn, Melbourne remains one of the best prospects for buyers, supported by a strong economy and population growth
Housing values ​​have fallen steadily in Melbourne in recent months. however, consistently high prices drive buyers to interest themselves at the lower quartile of the market.
According to the CoreLogic Home Value Index of April 2019, the capital recorded the largest annual decline in the national housing market, to 13.9%, but prices still have to drop to a reasonable level for buyers.
"Despite the decline in housing values ​​in Sydney and Melbourne, the overall value of housing relative to household income remains well above that of other cities, which could be another distorting factor for housing. 39, credit supply to the bottom or the bottom of the market, "says Tim Lawless. Head of Research at CoreLogic.
Roy Morgan's Inflation Expectations Index shows that inflation expectations in Melbourne reached 3.9% in February 2019, up from 4.7% a year earlier – the lowest level since more than two years.
First homebuyers are showing increased interest in the market. however, lending policies could continue to limit purchase attempts.
Changes in rental rates and yields occur faster than changes in real estate prices. However, with yields still low in Melbourne, according to CoreLogic's quarterly rents review for March 2019, investors will likely buy with a negative conversion strategy, but the trend could move towards other markets that have more to offer.
Long-term investors get their dues
Even with his recent struggles, investing in Melbourne has paid off for those who have played in the past.
"According to CoreLogic's recently published statistics on the evolution of real estate prices over the last 20 years, Melbourne has seen a 274.6% increase in real estate prices , the fastest growing of all Australian capitals, "reports James Nihill, director of Patrick Leo.
"Property is traditionally a long-term investment and it is clear that investors who settled in Melbourne 20 years ago are now benefiting from it."
Nihill points out that Victoria's economy is one of the best in the country, providing resilience to the real estate market, supported by strong population growth to combat supply problems and initiatives to improve transport infrastructure.
"It's undeniable that the real estate market downturn is going to make headlines in the foreseeable future, but the real estate market is actually dynamic and there are still opportunities if you know where to look," says Nihill.
SUBURB TO MONITOR
YARRAWONGA: The Investor's Paradise in the Victoria Area
The suburb of Yarrawonga is connected to Mulwala at the NSW boundary. It has been touted as an "aquatic paradise" because of its proximity to Mulwala Lake and the Murray River. This location makes it a lively tourist spot where people enjoy the sun, water, beaches and entertainment.
It's also an investor's paradise, with very affordable properties. Despite steady growth over the five years to March 2019, the median home price remains below $ 400,000, while the median unit value is less than $ 250,000. Rental rates also increased in January 2019, and yields were not poor at 5.1% and 5.7% for homes and units, respectively.
Tourism: Yarrawonga is a hit with vacationers because of its climate and location on the water's edge
Affordability: Despite double-digit growth in recent years, Yarrawonga remains cheap
Top suburbs:
Keperra
,
Mortdale
,
new city
,
albion
,
Westmead
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