“What Can I Buy for just $300,000?
Opinion on the Melbourne residential market here are some highlights:
· The patch we have chosen stretches from as close to the city as Preston out to as far north as Craigieburn offers primarily 1- and 2- bedroom apartments and blocks of vacant land that can be afforded for $300,000.
· In Preston the range is very restricted with single bedroom units primarily being all that can be purchased. If you do purchase a 2- bedroom apartment it will be in a poor location or in extremely poor condition.
· In the new estates in northern suburbs closer to Wollert, and where apartments are scarce and little infrastructure has been developed, it is still extremely hard to find any liveable homes for under $300,000
· To enter into the market in the northern suburbs around Craigieburn and Wollert, a family requiring a 3- bedroom home can be expected to pay around $350,000
· Closer into the city around Pascoe Vale prices will start from $360,000 to $370,000 range. The houses for this price are very basic and will often be in the poorer locations of the suburbs.
· At the moment, with house prices experiencing decreases in the past year, we are now seeing them stabilising.
· It is expected that in the coming year house prices will bounce back with growth expected.
· Prospects in the inner suburbs such as Preston and Coburg are enticing as rental returns are still competitive. 1- bedroom apartments that are selling for under $300,000 are still demanding rental returns above $1,200 p/m
· Investing in the outer suburbs throws up more uncertainty as the perception that these undeveloped suburbs creates risk and doubt leads to them experiencing slower growth patterns.
· Once these suburbs are established in terms of infrastructure and the anticipated planning comes to fruition the growth will then be seen
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Summary courtesy of Therese O’Neill from Alphabroker