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But Melbourne gross house yields are already much lower than Sydney. How much higher can the prices go?
My two cents worth. In general the low rental yields will certainly hesitate investors. However, many low end markets in Melbourne still have 4~5% yield for houses. The problem is in more sought after mid to prestigious markets which have merely 2.5~3%. This may result in some price consolidation in next year. However low end market will keep their momentum for another year or two, especially for another looming rate cuts.
Agree...I think the low end can still give you returns up to 6.5%..I just bought a H&L package for 303k turnkey + 10k for stamps and interest...I will get 380pw on this product. I am not giving the location till I buy a couple more.
Sash that's slack .....
Melbourne's median is almost $300k below Sydney - $914k to $638k. In 2010 I think they were almost even at around $505k and $525k respectively, there's a lot of catch up to be done IMO.
Sash that's slack .....
We were kidding about hyping Docklands..
Docklands and southbank have barely moved despite the rest of Melbourne moving. The supply in those areas has all but killed them. It will take 5+ years at the minimum for the excess supply to he absorbed and price growth to return to these areas. By that time, even struggle st. mt druitt would have done more cg.
THE WINNERS
1. Melbourne
Melbourne CBD has killed it thanks to developing Docklands and Southbank.
It will come as no surprise that the Melbourne and Sydney CBDs lead the way. But what may surprise you is that Melbourne CBD is an easy number one.
Since 2001 the Melbourne CBD, including Docklands and Southbank, has grown by $24.42 billion, up 76 per cent. When you consider that the Sydney CBD only grew by 37 per cent, with an output growth of $18.56 billion, then Melbourne?s growth is even more impressive.
PwC?s director of economics and policy Rob Tyson told The New Daily that Melbourne CBD?s impressive growth is largely down to the rapid development of Southbank and Docklands.
Since 2001 the Melbourne CBD, including Docklands and Southbank, has grown by $24.42 billion, up 76 per cent.
The suburbs of Mount Gravatt and Sunnybank in Brisbane’s south are the next poorest performers, shrinking by $152 million and $127 million respectively.
Two things you're missing / "hidden" from that report:
1) Most of that 76% growth happened between 2001 - 2011
2) Past performance does not guarantee future performance
10 years from now YES Docklands and Southbank will probably have matured and become great places to invest and live, like Pyrmont in Sydney (Pyrmont's high rises had a rough start too which many forget), but that's a 10 year wait. You could be doing much more with your money in that time.
Holy moly. Alright I will totally disregard this report now. These are literally the two main Brisbane suburbs that I'm interested in!
Agree...I think the low end can still give you returns up to 6.5%..I just bought a H&L package for 303k turnkey + 10k for stamps and interest...I will get 380pw on this product. I am not giving the location till I buy a couple more.
http://www.dailyreckoning.com.au/category/australian-housing-1/?This calamitous outcome is especially likely in Melbourne where rents have not increased in real terms since 2010. Melbourne is primed to become the epicentre of a legendary housing market crash due to the combination of a staggering boom in real housing prices (178 per cent). Perth is also in a serious predicament.?
Whoa, that's somehow against the property investment advice that I have been heard and received of not buying OTP for the high gain CG profitability.
There is nothing intrinsically wrong with OTP. It's just hard to find a good one but they are out there.
MTR, wouldn't be surprised if the median price in Melb has already past $700k this quarter. How does say $730k and $970k compare? Does that change your perspective?