Melbourne market-your thoughts
- Thread starter tgan
- Start date
What are these 3% yield places people are talking about? Mansions?
$700k 2 bedroom units in Toorak rent for around $430-450pw.
~3.1% yield.
Possibly an extreme example (it's a real life one), but not a mansion.
whaaaaat?
Try a rent of around $600 per week for a two bedroom apartment, in the CBD. Purchase price around $550k in the current environment. Yes not Toorak, but I still have my cashflow even though its a box in the sky.
Yes, unfortunately yields in Toorak are quite poor for some reason. Great value for renters, the apartment is beautiful. Oversized, city views, top floor, off street parking, trees and charm galore. 6km from the city but you can hear a pin drop on a Saturday night.
i.e. this place asking $485pw is probably worth over $700k - http://www.realestate.com.au/property-apartment-vic-toorak-412154723
i.e. this place asking $485pw is probably worth over $700k - http://www.realestate.com.au/property-apartment-vic-toorak-412154723
Old houses in Beaumaris have a bad yield
Weatherboards that sell for around 800 - 1m
Rent out for about 450 - 500
So about 2.5%
I'm sure there's worse yields around but not many could lower that in the sub 1 million price range
Yes, it's probably an extreme example.
3.1% is probably high for a top 10 suburb in Australia.
Yeah, there are worse yields.. most noticeably in Glen Waverley, where many old places jumped to ~1.5-2mil range in recent months (accelerated after jumping from 800K-1mil in early 2013) and one would be lucky to get more than 450 a wk for these places.
As a melbournite and property investor in melbourne I am very optimistic for Melbourne.
Re schools, you are right, there is exponential growth in appealing areas in the east with the attraction of the High School Zone. Places like Balwyn and Glen Waverley are clear examples of this, with a strong influence from our chinese friends.
Areas within 10km of the CBD are transforming, with developments springing up everywhere, whether I feel they are developments to invest in will depend on a variety of factors....use Hawthorn for example, the place is growing quicker than pinocchio's nose, really depends on the developer, location....vicinity to station and transport and for our overseas friends....the number of the building and if its north facing.
Melbourne is a place that will continue to grow.....for at least the next 12-24 months..
What can you get for under 350k these days in melb?
Hoppers
Werribee
Or you could chance your arm in Dallas, broady or st albans
270k for a 3 bed house
That's why i worry about all the threads on here about Logan /Elizabeth
These suburbs are almost proof that the bottom suburbs won't grow. And melbourne is a much more expensive city
Logan and Elizabeth are outer suburbs of Bris and Adelaide and hence are priced cheaper than other suburbs in their city. How is that any different to the suburbs you've mentioned, they're outer suburbs which are cheaper than their closer-in counterparts, too.
Yeah maybe the post was a bit rash but this is how I see it
You'll have to pay 250 ish in Logan for a house so similar to the melbourne examples ( a little cheaper). However you can buy in Brisbane within 8km to the CBD on a 600sqm block for 500k
Melbourne is much more expensive - maybe double the price
I was just thinking how I see little growth potential in those outer suburbs
Until a city gets to that high population/ low land stage that Sydney got to
What can you get for under 350k these days in melb?
1-bedder apartment in CBD which will fall 10% in value within 4 years.
http://www.realestate.com.au/property-apartment-vic-malvern+east-116424723What can you get for under 350k these days in melb?
2/804 Warrigal Road Malvern East Vic 3145 - 2/1/1
- 2 train stations
- Chadstone Shopping Centre
- Monash University
People invest in Elizabeth / Logan for the cashflow rather than CGs. Yields are higher here than anywhere in Melbourne (house on land +500m2).
I live in Melbourne and love it, but in terms of yield, its rubbish. I agree with much of what Feihong says. Low yields will keep lids on prices and will start to bite once interest rates rise. Its not going to happen tomorrow but rising rates are going to burn a fair few. I would invest within 15km of the city (north side) if anything. I can't believe these McMasions in woop woop (Nobel Park) are going for +$1.3m. It has to be destined for tears.
The Asians are killing the market (for new investors or new home buyers). I know an Asian businessman (lives and resides in Asia) who owns halve of Cheltenham and almost all his money has come from political nepotism. Id love to see how much of this Asian investment money is legit. Australia is a great easy place to hind your dodgy money. Non-citizens should only be able to invest in Commercial or multi-residential property. Its killing our affordability.
I live in Melbourne and love it, but in terms of yield, its rubbish. I agree with much of what Feihong says. Low yields will keep lids on prices and will start to bite once interest rates rise. Its not going to happen tomorrow but rising rates are going to burn a fair few. I would invest within 15km of the city (north side) if anything. I can't believe these McMasions in woop woop (Nobel Park) are going for +$1.3m. It has to be destined for tears.
The Asians are killing the market (for new investors or new home buyers). I know an Asian businessman (lives and resides in Asia) who owns halve of Cheltenham and almost all his money has come from political nepotism. Id love to see how much of this Asian investment money is legit. Australia is a great easy place to hind your dodgy money. Non-citizens should only be able to invest in Commercial or multi-residential property. Its killing our affordability.
Cafe at Kingsway is attracting strong buyer interest because of its street number
Number 8?
http://www.heraldsun.com.au/realestate/property-attracts-out-of-control-interest-from-chinese-buyers/story-fnhytr0m-1226864372926
Number 8?
http://www.heraldsun.com.au/realestate/property-attracts-out-of-control-interest-from-chinese-buyers/story-fnhytr0m-1226864372926
