“Lazy Half Million – 2014” is the Theme of this month’s HTW Month in Review. Every year in July HTW take a hypothetical half million dollars and ask our (HTW) offices to give their advice on where investors should be looking to spend it.
2014 has been an interesting year in a number of centres where price movement have been dramatic – in both directions.
This month’s issue provides a very informative snapshot of the market and how it has tracked over the past 12 months, while also opening a few windows on future growth.
HTW take a look at how the market stacks up in your locality and compare it against others from around Australia
Summary opinion on the Melbourne residential market.
– With record low interest rate, it may appear to be a good time for investors and first home buyers to break into the property market.
– Melbourne dwelling value surged by 2.1% in the March quarter, with a marked increase of 8.6% compared to the same quarter in 2013.
– Housing affordability is now the hot issue as incomes fail to keep pace with the growth in property prices.
– Most of the inner suburbs have a median house price over $500,000.
– Local public and private infrastructure is one of the most important determinants of property value.
– Bundoora and Epping are 16 kilometres and 22 kilometres north of the CBD respectively.
– Bundoora is home to RMIT and La Trobe university campuses whereas Epping house the campus of NMIT.
– A strong demand for housing is expected in both suburbs in the coming years owing to the increase in private and government developments.
– Bundoora currently generates an annual growth of 6.5% and a rental yield of 3.5%; whereas the annual growth and rental yield for Epping are 6% and 4.8% respectively.
– Both suburbs offer promising future capital growth and rental yield owing to the expected population growth in the City of Whittlesea and their convenient location as well as infrastructures.
– Western Melbourne suburbs such as Footscray and Maidstone both experienced a capital growth of 4.7% in 2013 with a weekly median advertised rent of $380 and $350 respectively
– It is expected that the western suburbs housing price will continue to experience a moderate growth in the short to medium term.
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