The Next BIG THING in Melbourne Property

If I were talking to you about property investment just 3 or 4 years ago I would have told you that the best properties to buy are located within 15km’s of a major CBD in a major Capital City. The right property (that is key!) in those areas will definitely still perform and this tried and tested method still rings true.

Along with those areas though, Melbourne is changing its face, mostly through the Government initiatives and infrastructure projects that are pouring money into key areas around Melbourne. (See the Melbourne 2030 Plan for more info here http://www.melbourne2030.vic.gov.au/). The Victorian Government has identified that if our population keeps growing as it has been, new infrastructure will need to be constructed to cope with the increased populace.

Continuing to build further and further out from the CBD (we are already 55km’s in the East and approx. 35km’s in the West) does not suit the lifestyle of the ‘new’ Melbournian and increases traffic congestion. The initiative has been to identify key areas that can cope with population growth and already have good infrastructure in place, including roads, public transport links and established shopping and lifestyle centers.

There are a few different ratings for these areas, the ones of most interest are either Principle Activity Centres, or Major Activity Centres and although most of them are based within 15km’s of the CBD there are a few that stand out, which are based slightly further out. One Major Activity Centre of interest to Nyko Property, is Epping, 22km’s from the CBD.

Epping is going through a major redevelopment, infrastructure works around Cooper Street are ongoing and the relocation of the Victorian Fruit, Vegetable and Flower Markets is not to be underestimated. With a median price still in the $300’s, this suburb definitely has room to move.

There are other examples of such suburbs in Melbourne, where it is still possible to buy large 2 bedroom apartments with yields of over 5% per annum in the low to mid $300’s! You will notice that Nyko Property will be concentrating on some of these suburbs over the coming 12 months, along with a good mix of the blue chip suburbs, so keep an eye out.

Any questions or comments, add them below and I will endeavor to answer asap.

Bill Nikolouzakis - Nyko Property

Whats in store for Spring!

The REIV has released the June quarter median prices which reveal that the median price of a house in Melbourne has increased by 8.5 per cent to $559,000 from a revised $515,000 in the March quarter.

Enzo Raimando, the CEO of the REIV expects apartments to continue to drive growth “Prices have also continued to rise in the unit and apartment market, with an increase of 4.7 per cent to $463,215 in the quarter. Carlton, Ascot Vale, Malvern East, Northcote and Footscray had the largest increases in their medians over the quarter,” Mr Raimondo concluded

The June quarter looked great but with Spring now upon us we expect to see an increase in property available in the marketplace and with the additional positive news reinforcing confidence in the Australian economy demand will be sure to follow. Confidence is rising and with the lending requirements starting to ease slightly (some banks now offer 95% loans again) and the property market showing strong growth through winter, the market seems poised to tick along at good levels.

New and Off the Plan: This segment of the market looks very healthy at the moment. The Nyko Property clients who bought throughout 2008 and 2009 and are settling now have realised significant increases in the value of their properties, some in excess of 20%. If you factor in growth figures like these, with the ability to purchase a property now without having to settle for 12-18 months, it gives you the option to draw equity quickly and re-invest to build your portfolio.

Finding these opportunities in the market place is not easy whether its price point property, or high-end projects and the market is not as simple as it used to be. Ample due diligence to support the location, and the performance of the property needs to be sought and only then can these opportunities be qualified as strong investments. The Melbourne 2030 concept is a brilliant guide, a government backed initiative disclosing the up-and-coming hot spots in Metro Melbourne, enabling Nyko Property to locate boutique projects in these locations, and package them with all the information necessary to make an educated decision.

The time to act is now, contact Nyko Property to learn more about our exclusive 'off market' investment opportunities and receive your complimentary 'Project Information Pack'.

Bill Nikolouzakis - Nyko Property