Market Wrap – Growth

Last weekend 100 Melbourne homes sold for over a million dollars.

According to the REIV, 56 Melbourne suburbs now boast median price tags in excess of one million – that’s ten more than six months ago. Once working class areas including St Kilda East, Port Melbourne, Fitzroy and Carlton have joined high-end markets Toorak, Brighton and Kew – a reflection of overall house price growth in the past 18 months.

The list of new entrants also highlights the benefit of buying in neighbouring areas. For example, Doncaster and Mont Albert North recently entered the million dollar club as a result of buyers looking further afield from inner-east favourites Balwyn and Mont Albert, where median prices are now above $1.5million. It goes to show the knock-on effect of prestige suburbs onto neighbouring suburbs can help put more equity in your pocket – and with much the same lifestyle benefits as your preferred area.

But you don’t need to spend millions to make money on property. The median house price in Werribee, while an affordable $335,000, has increased 9.5 percent in the last three months thanks largely to its proximity to new schools, transport and the beach. While millionaire’s row is an excellent gauge for future capital growth, don’t despair if six figure properties are beyond reach – there are opportunities for buyers at all levels of the market if you know where to look.

Like craft beers?

If you like craft beers and fancy sampling a new one this weekend.  Check out Time Out Melbourne’s article on Melbourne’s best craft beer bars.

 

 

Like Hunting Down a Bargain?

Like a bargain? Well if you do it might pay to check out an article which appeared in The Age recently about garage sales. Held throughout the year garage sales are a great way to pick up a bargain and recycle previously loved items. So keep your eye out when you’re out and about and may be check out a sale or too.

Market Wrap – heading to the polls

Victorians are heading to the polling booths this month – and the outcome could significantly alter Melbourne’s property market.If Labor wins office, the recent overhaul of Melbourne’s residential zones may be reversed. This year the Napthine Government approved new planning zones for 22 of Melbourne’s 31 councils, dividing suburbs into areas where buildings up to two, three or four levels can occur.In some leafy councils like Glen Eira, building above two storeys has been heavily restricted, whereas development up to four storeys is permitted in areas like Darebin. In contrast, Labor is proposing to revive its Melbourne 2030 vision, which would reduce development in outer suburbs and instead create higher-density urban ‘hubs’ close to transportation.These changes could mean your street remains tree-lined or becomes crowded by multi-storey apartments in years to come, which may affect property prices. For example, a free standing home in an increasingly built-up area is likely to increase in value due to its rarity.While house hunters can choose their vote, there’s no knowing for sure what policies will eventuate in future, or to what extent.Rather than letting politics sway your decision, stick to the basic rules of real estate. Homes close to schools, amenities, transportation and attractions like the city or beach tend to hold their value, regardless of development in the area – helping to make your purchase election proof.

We will remember them

 

 

They shall grow not old, as we that are left grow old:

Age shall not weary them, nor the years condemn

At the going down of the sun and in the morning
We will remember them.

 

Market Wrap- Times – they are a changing

Times, they are a changin’. The same is true of house prices. In Melbourne in 1973, the average house would set you back $19,800. Since then prices have increased almost thirty fold to the current median of $615,068, according to Domain.

While speculation swirls over affordability, it’s important to keep things in perspective. The value of real estate has grown, but so too have wages. In 1973 the average Aussie was earning $111.80 a week (ABS) whereas these days we’re taking home an average of $1,453.90. Apart from wages, there’s numerous economic factors explaining growth, from our increasing population and the rising cost of construction, to demand from foreign investment and taxation reform. These shifts in the landscape have largely benefited property owners, through the significant capital gains accrued on the humble family home. However when buying real estate these days, the ability to manage mortgage repayments week to week should be your primary consideration – don’t let yourself get swept up in the headlines.

Rather than focusing on short term peaks and troughs, think what long term house price increases could do for your personal wealth in decades to come. Those mortgage payments might be worth it after all.