“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.

 

Thanks to Therese O’Neill from Alphabroker and if you don’t already, you can subscribe to receive this report directly each month for FREE. Simply jump on the HTW website www.htw.com.au and follow the prompts.

 

Also if you would like a copy of this report please email me at admin@theloanoperator.com.au and i will gladly on forward.