Are you thinking of buying Melbourne Investment Properties in 2024 whilst they are still cheap?
Are you thinking of buying Melbourne Investment Properties in 2024 whilst they are still cheap?
Remember that not all Melbourne property is created equal; you need to know where to buy, what to buy, and which suburb represents the best value for money!
Dear Fellow Property Investor,
Australia’s housing market has had a mixed start to spring, but PropTrack data has revealed a number of suburbs around the country that have seen massive growth over the past 12 months.
The data looked at Melbourne suburbs with at least 100 sales for the year, revealing that some areas had experienced boom-like growth cycles.
Melbourne’s housing market shows resilience with significant growth in suburbs like Ivanhoe, Diamond Creek, and Coburg North. Ivanhoe leads the housing growth, while Blackburn, Box Hill, and Surrey Hills witness strong unit growth driven by overseas interest and skilled migrants.
Melbourne’s market has faced unique challenges, including unfavourable investment taxation and changes to tenancy laws making investment properties less attractive.
Leading house price growth over the last 12 months was Ivanhoe (17.3 per cent), Diamond Creek (13.2 per cent) and Coburg North (12.8 per cent).
Blackburn (22.1 per cent), Box Hill (11.1 per cent) and Surrey Hills (11 per cent), led unit growth.
“With higher interest rates, we’ve seen sales at higher price points and a higher turnover in the top quartile.
“With units, Blackburn, Box Hill, and Surrey Hills have all seen significant overseas interest, especially since the Covid lockdowns – skilled migrants have been arriving in these areas and the hospital precinct.“
So let me ask you a question…
Do you have a game plan for 2024?
Or will you watch savvy, educated, market-ready investors snap up all the bargains at the recovery phase of the Melbourne property cycle (which, in my opinion, is RIGHT NOW!)
Or, will you join them?
The choice is yours!
So, what are you waiting for?
Reserve your place and join me and 55 like-minded property investors for the first Real Estate Investing Fast Track Weekend for 2024!
They say a picture can be worth a thousand words….
Check out the latest HTW Australian National Property Clock for Melbourne!
That’s right, Melbourne has been slowly moving though the bottom of the housing market property cycle and is now in the best possible section of the property clock – 8:00 o’clock, moving onto 9:00 o’clock which coincides with the BOOM phase!
The BOOM phase starts at 9:00 o’clock and peaks at 12:00 o’clock…
Remember…
You will ONLY get one opportunity like this every 10 years!
So let me ask you a question…
Do you have a game plan for 2024?
Or will you watch savvy, educated, market-ready investors snap up all the bargains at the recovery phase of the Melbourne property cycle (which, in my opinion, is RIGHT NOW!)
Or, will you join them?
The choice is yours!
So, what are you waiting for?
Reserve your place and join me and 55 like-minded property investors for the last Real Estate Investing Fast Track Weekend for 2024!
Sydney has long been Australia’s most expensive city for homebuyers, but the price difference between Sydney and Melbourne has reached unprecedented levels.
PropTrack’s Eleonor Creagh said that as of August, Sydney’s median house price is 70% higher than Melbourne’s, with Melbourne homes now 41% cheaper – a $600,000 difference, marking the largest price gap in 20 years.
Housing supply and land constraints drive Sydney’s premium.
One significant factor behind Sydney’s rising premium is its constrained land supply.
Sydney’s natural features, including its harbor and surrounding national parks, limit the availability of developable land. In contrast, Melbourne has seen a higher rate of new home completions per capita.
Over the past decade, Victoria averaged 9.5 new dwellings per 1,000 residents per year, compared to just seven in New South Wales, PropTrack reported.
Higher building costs in Sydney
A recent report by The Centre for International Economics (CIE) also highlighted Sydney’s higher construction costs. Red tape, taxes, and other fees make building new homes in Sydney more expensive, with 50% of these costs tied to such charges, compared to 37% in Melbourne.
“Waterfront properties and international appeal have kept Sydney’s market strong,” Creagh said.
Melbourne’s market struggles post-pandemic
Melbourne has lagged behind other cities since the COVID-19 pandemic, losing population and experiencing less dramatic price increases than other Australian capitals.
Since March 2020, Melbourne has been the weakest performing capital, with house prices still 4.7% below their peak. The city has even dropped to fourth place among Australia’s most expensive capitals, with Brisbane and Canberra surpassing it.
Investor confidence declines in Victoria
Several factors are contributing to Melbourne’s continued underperformance.
Higher land taxes for investment properties have made Melbourne less attractive to investors, while stock levels remain high. In July, Melbourne listings were the highest since November 2018, providing buyers with plenty of choices.
The future of the Sydney-Melbourne divide
Looking ahead, Melbourne’s housing market is expected to remain subdued compared to Sydney, Creagh said.
The combination of a high inventory of homes and softer economic conditions may cause Melbourne prices to fall further. However, as Melbourne houses become more affordable, the price gap could eventually narrow.
While Sydney’s geographic limitations and global appeal may ensure it retains a price premium, the historic price swing may make Melbourne more appealing in the future.
“At some point, Melbourne may be seen as undervalued, given its current price levels relative to Sydney,” Creagh said.
Let me ask you something…
Do you have a game plan for 2024?
Or will you watch savvy, educated, market-ready investors snap up all the bargains at the bottom of the Melbourne property cycle (which, in my opinion, already bottomed out in November 2022), again?
Or, will you join them?
So, what are you waiting for?
Reserve your place and join me and 55 like-minded property investors for the last Real Estate Investing Fast Track Weekend for 2024!
Recent infrastructure developments and upgrades to local amenities have been key factors in Altona’s recent property price surge, according to a local real estate director.
Real Estate Institute of Victoria (REIV) data showed a 25 per cent increase in the median property price to $1.2 million in the June quarter
The number of properties sold in Altona has remained steady, with 120 properties sold this quarter compared to 118 in the March quarter.
Ray White Altona director Anthony Anile said the steady volume of sales and rising prices indicates a strong demand.
Properties have been selling faster, with the average days on market reducing from 45 to 30 days, while Mr Anile said was a sign of increased buyer interest and competition.
Auction clearance rates have also risen considerably, going from 70 per cent to 85 per cent, the data revealed.
First-home buyers and investors alike have shown an interest in Altona, with increased activity from both demographics.
Mr Anile mentioned “the appeal of a coastal suburb with a relaxed lifestyle,” as being among the deciding factors.
The suburb is attracting young professionals, singles and couples, as well as families,” he said.
“They are drawn by the family-friendly environment, good schools, parks, and community facilities,” he said.
The suburb saw the largest median price increase in Hobsons Bay and Maribyrnong and was significantly higher than the rest of metro Melbourne, which recorded a 1.5 per cent decrease to property prices.
Among the suburbs in Hobsons Bay and Maribyrnong to also record a rise were Altona North (7.8 per cent to $965,000), Footscray (5 per cent to $1.1 million), Kingsville (1.6 per cent to $1.1 million), Laverton (0.8 per cent to $578,000), Seabrook (2.8 per cent to $784,000) and West Footscray (11.4 per cent to $1.02 million).
Let me ask you something…
Do you have a game plan for 2024?
Or will you watch savvy, educated, market-ready investors snap up all the bargains at the bottom of the Melbourne property cycle (which, in my opinion, already bottomed out in November 2022), again?
Or, will you join them?
So, what are you waiting for?
Reserve your place and join me and 55 like-minded property investors for the first Real Estate Investing Fast Track Weekend for 2024!
Melbourne renters are now paying almost $2900 more in rent than they were 12 months ago, new data has revealed.
According to PropTrack’s latest Market Insight Report, Melbourne rental prices have climbed by 10.6 per cent in the year to June 2024.
The median advertised rent increased by $55 a week over the last 12 months, meaning renters on average are having to pay $2860 more a year.
Across the board, the median weekly cost of renting a home in Australia’s capital cities has increased by 10.3 per cent.
Renters in Sydney are paying the most ($740 a week), followed by Perth ($650), Brisbane ($620), Darwin ($600) and the ACT (also $600).
Despite the sharp increase over the past 12 months, Melbourne is the third-cheapest city in Australia to rent in ($575 a week), with Adelaide coming in at a close second ($570)
The cheapest place to rent is in Hobart, which recorded a median rental price of $510 a week over the last 12 months.
“Sydney remains the most expensive capital city to rent a home, with the median advertised rent rising 2.8 per cent over the quarter and 8.8 per cent year-on-year to reach $740 per week,” PopTrack said.
“Over the past decade, Perth has transitioned from being the most affordable capital city to rent to the second most expensive behind Sydney, with the median advertised rent hitting $650 per week in June.
“Hobart and the ACT were the only cities which saw rents decline over the quarter, however Hobart remains higher compared to 12 months ago while the ACT’s rental prices have held steady.”
Let me ask you something…
Do you have a game plan for 2024?
Or will you watch savvy, educated, market-ready investors snap up all the bargains at the bottom of the Melbourne property cycle (which, in my opinion, already bottomed out in November 2022), again?
Or, will you join them?
So, what are you waiting for?
Reserve your place and join me and 55 like-minded property investors for the first Real Estate Investing Fast Track Weekend for 2024!
Melbourne homeowners are set for an up to $55,000 windfall that could usher in record house prices in the next year.
New PropTrack estimates have tipped the city for 3 per cent to 6 per cent home value growth, the biggest uplift in the past two years after multiple interest rate hikes since May 2022 put the Victorian capital’s housing market in the doldrums.
For Melbourne’s $921,000 median house price, the growth would mean a $27,630-$55,260 surge.
It would also add $18,500-$37,020 to the city’s $617,000 typical unit.
At the upper end of the forecast, the city’s home values would rise more than seven times the 0.8 per cent uptick they recorded this financial year.
PropTrack economic research director Cameron Kusher said Melbourne buyers have had more choice in stock than other states and the city was becoming more attractive to buyers due to its affordability.
“It’s the first time Brisbane is back in line with Melbourne in terms of affordability and the gap (of affordability) between Sydney and Melbourne, it’s one of the largest on record,” Mr Kusher said. “Although Victoria is still seeing a slightly greater loss of people to other states than it is gaining, housing affordability will drive people to want to come to Victoria.
“If you want to build your career you want to be in Sydney or Melbourne.”
Despite the scope for price rises, Mr Kusher said with the new financial year looming there were positive signs for buyers ahead.
“With the tax cuts coming next week we will see buyers borrowing capacity increase and then provided that we have interest rate cuts as well at some point, Melbourne will start looking more affordable and attractive,” he said.
“The state government in Victoria is still seeing investors selling out of the market which is creating space for first home buyers.
“It’s getting more expensive to rent and there is a lot of stock on the market.”
Ray White Craigieburn auctioneer and sales consultant Trish Orrico said 50 per cent of her sales lately had been landlords selling up due to tax hikes for investors, with first home buyers snapping up the residences.
“While these projected figures are positive, we shouldn’t be making assumptions on the property market, we don’t have a crystal ball,” Ms Orrico said.
“The market is the market we are guided by things that are happening within the economy now.”
The analysis from PropTrack revealed national home prices are expected to rise by up to 5 per cent in the new financial year in line with slowing price growth forecast for several capital cities, though more substantial price growth is still possible in Sydney as well as Melbourne.
Let me ask you something…
Do you have a game plan for 2024?
Or will you watch savvy, educated, market-ready investors snap up all the bargains at the bottom of the Melbourne property cycle (which, in my opinion, already bottomed out in November 2022), again?
Or, will you join them?
So, what are you waiting for?
Reserve your place and join me and 55 like-minded property investors for the first Real Estate Investing Fast Track Weekend for 2024!
House prices will rise nationally by 5.3% over the next six months and by 5.6% during 2025, KPMG’s new property report on Australia’s capital cities finds.
Apartment prices across the country will see an average rise of 4.5% by December and then match houses by growing by 5.6% in the following 12 months.
For the next six months, there will be considerable national variation with Perth house prices rising by over 10% while Darwin and Hobart only experiencing 1.4% growth. For units, the predicted increases range from Perth’s 8.6% to Canberra’s 1.3%.
But in 2025, there will be much greater house price growth consistency across the country. Melbourne houses will rise the most by 6.5% followed by Canberra at 6.0%, but even the lowest, Brisbane will still rise by 5.1%. By contrast, units will still have considerable regional variation next year, ranging from Perth’s 8.0% growth to Brisbane’s more modest 2.5% increase.
The previous 12 months, to March 2024, saw a 7.7% national rise in house prices – with Perth, Adelaide and Brisbane the stand-out performers – and 6.1% in apartments. The slower growth over the next six months is attributed to a slower rate of migration, and the cooling impact of high interest rates. Prices will then start rising slightly faster during 2025 as rate cuts start to be introduced by the RBA, as KPMG anticipates.
Rents are tipped to rise by 4-5% over the next two years, having increased by 7.8% over the past year, the largest increase since the GFC in 2008/9.
Dr Brendan Rynne, KPMG Chief Economist, said: “In a year of high interest rates and inflation and subdued consumer sentiment the housing market has withstood all those factors and still provided strong price growth, due to demand outstripping supply. Even the much-anticipated ‘fixed-rate cliff' – the transition of mortgage holders off lower fixed rates to higher variable rates – has only had a mild impact and households have so far coped well with the rate rises, due to a robust labour market and Australia’s historic low unemployment rate.”
“Supply has remained insufficient, and while we do forecast a slight rise in housing approvals, this will take time to translate into actual housing completions, due to the time lag inherent in the process. Although material costs and financing costs have started to stabilise after sustained increases, labour costs continue to increase in response to high demand for qualified tradespeople. Many barriers remain to developers building new homes, while continuing high rental costs are pushing renters to look to buy instead, which is pushing up demand.”
“After the exceptional house price increases we have seen in several capital cities over the past 12 months, we do forecast a slowdown in the rate of growth, given the drop in migration, the delayed impact of high interest rates and a predicted increase in unemployment over the rest of this year. Foreign investment activity has also yet to regain its levels of two years ago. But overall we will still see solid price gains over the next 18 months, especially in 2025, as the RBA starts to introduce interest rate cuts, as we anticipate”.
Let me ask you something…
Do you have a game plan for 2024?
Or will you watch savvy, educated, market-ready investors snap up all the bargains at the bottom of the Melbourne property cycle (which, in my opinion, already bottomed out in November 2022), again?
Or, will you join them?
So, what are you waiting for?
Reserve your place and join me and 55 like-minded property investors for the first Real Estate Investing Fast Track Weekend for 2024!
The Australian housing market has weathered significant challenges over the past five years, showing remarkable resilience despite a global pandemic, multiple interest rate hikes, and high inflation.
The latest data sheds light on the current state of the property market and offers insights into its trajectory for the remainder of 2024.
1. Total value of residential dwellings
The total value of residential dwellings in Australia surged by $209.4 billion this quarter, reaching $10.7 trillion.
This represents a 2% quarterly increase and a 9% year-on-year rise.
National home values have rebounded from the 2022/23 downturn caused by interest rate pressures, reaching new record highs.
PropTrack's Home Price Index indicates a 6.68% annual increase in home values, with capital cities leading the growth.
Households own $10.29 trillion of the total residential value.
The average price of residential dwellings climbed by $14,300, hitting $959,300 this quarter.
2. Increase in residential dwellings
The number of residential dwellings rose by 52,700, totalling 11,176,100 this quarter.
This 0.5% increase during the March quarter equates to one property per 2.4 people.
Over the past year, more than 170,000 homes were added to the inventory, matching the new homes built within that period.
However, to meet the Government's pledge of 250,000 new homes annually, 240,000 new dwellings are needed each year. The current figure falls short by 80,000.
3. Decline in new building approvals
New building approvals dropped by 0.3% month-on-month but grew by 3.5% compared to last year.
Before January 2020, the average number of completed properties per 12-month period exceeded 200,000.
Since then, this average has fallen to around 170,000 due to an 11% decrease in approvals over the 12-month rolling period, according to April data.
Private sector house approvals fell by 1.6% in April but increased by 9% year-on-year, while apartment approvals declined by 1.1% month-on-month and 8.5% from last year.
With new apartment construction contributing the largest volume of new properties, approval rates for this type of new build need to rise.
4. Demand for new tradies
There is an immediate need for 90,000 new tradies, with an additional half a million required over the next five years to meet the target of 1.2 million new homes by 2029.
This data, from Build Skills Australia, highlights the urgency of this demand to support the housing construction industry.
Jobs and Skills Australia notes a shortage of tradespeople in all occupations except roof tilers in Victoria.
This skilled labour shortage, coupled with soaring construction material prices, is hampering the construction of new homes.
5. Rise in new housing loans
New lending for total housing increased by 4.8% in April to $29.4 billion, following a 3.8% rise in March.
This figure is 24.6% higher than a year ago.
April saw an uptick in both the value and number of new loan commitments, with owner-occupier loans rising by 6% month-on-month and 24% year-on-year.
For investors, the monthly change was 7%, and 44% compared to April last year.
Year-on-year, there was a 19% increase in owner-occupier new loan commitments and a 25% rise for investors.
This suggests growing buyer confidence and a positive outlook for rental property availability as investors return to the market in greater numbers.
What these figures tell us…
These five key metrics provide a snapshot of the Australian property market's current status and its potential future direction.
The market's resilience amid economic challenges, the steady increase in property values, the rising number of residential dwellings, the pressing demand for skilled labour, and the surge in new housing loans shows that although the market is continuing to grow there are headwinds that are hampering this growth.
As we move through 2024, these trends will likely continue, although ideally an increase in new approvals and a resolution to the skills shortage is needed to speed up the number of new properties being built.
Let me ask you something…
Do you have a game plan for 2024?
Or will you watch savvy, educated, market-ready investors snap up all the bargains at the bottom of the Melbourne property cycle (which, in my opinion, already bottomed out in November 2022), again?
Or, will you join them?
So, what are you waiting for?
Reserve your place and join me and 55 like-minded property investors for the first Real Estate Investing Fast Track Weekend for 2024!
Don’t miss out, CLICK HERE to get up to date video education from Konrad Bobilak.
Dear Fellow Property Investor,
The Melbourne real estate market is buzzing with potential at the start of 2024, offering a plethora of opportunities for savvy investors and homebuyers alike. So, what suburbs will boom in Melbourne this year?
A handful of Melbourne suburbs recorded double-digit property price increases over 2023, bucking the city’s wider trend of modest growth.
Melbourne’s median house price median rose 2 per cent to $1,047,000 over the 12 months to December, and its unit price grew 4 per cent to almost $580,000 in the same period, the latest Domain House Price Report showed.
With an eye on the future, identifying suburbs with the promise of growth, affordability, and lifestyle appeal becomes crucial.
We will look into the top 10 Melbourne suburbs set to boom in 2024, alongside other noteworthy areas that promise unique opportunities.
Who will be my No #1 Best Melbourne cheapie suburb with the best capital growth potential in 2024?
You will need to watch this video to find out...
Don’t miss out, CLICK HERE to get up to date video education from Konrad Bobilak.
Did you know that Property Investors are swallowing up even more of the housing market?
In Australian politics there are relatively few issues outside of foreign policy that the two major parties can agree on. But there is one issue where both sides ostensibly agree: greater levels of home ownership.
In the run up to the last federal election, then Opposition Leader Anthony Albanese promised that a Labor government would help people achieve the “great Australian dream of home ownership”.
“For too long Australians who have worked hard have been locked out of the housing market by flat wages and rising prices, unable to even get a foot in the door let alone a roof over their heads,” Albanese said.
Opposition leader Peter Dutton shared similar views on home ownership with the press late last year: “the best way to empower Australians — to make them masters of their fate — is through home ownership.”
The leaders of the major parties sharing this view on home ownership is nothing new. Over 70 years ago there were debates in federal parliament not too dissimilar from todays, in which the leaders of the Coalition and Labor made their case on which party would do a better job building more new homes and getting more Australians into homes of their own.
Rhetoric collides with reality The peak rate of home ownership was recorded 57 years ago as part of the 1966 census, at which time 73 per cent of households owned homes. More recently, the Australian Institute Of Health and Welfare (AIHW) recorded a home ownership rate of 71.4 per cent in 1995. As of the latest data from the 2021 census, the home ownership rate has dropped to 66 per cent.
This raises an uncomfortable question for the nation’s leaders. After spending more than $20.5 billion on grants, concessions and other cash grants to first home buyers in the decade to 2021, home ownership rates have not risen, but instead have continued to decline.
Solely based on the decline in the proportion of households who own homes, there around 560,000 households who are renting today who would have otherwise been homeowners if the home ownership rate remained as it was in 1995.
Rise and rise Despite rising levels of home ownership being the stated priority of both the major parties their policies have achieved the polar opposite. The AIHW data instead illustrates a very different trend: the rise of the property investor.
In 1995, 18.4 per cent of households rented from a private landlord. As of 2020, 26.2 per cent rented from a private landlord and this is arguably somewhat distorted lower by the snapshot being taken during the pandemic.
If we extrapolate that on to the current number of households as determined by the ABS, private landlords have roughly 810,000 more tenant households today than they would have if the ratio of private landlord held housing to overall housing stock remained the same as 1995.
Today’s market According to data from the ABS, over the last 12 months 33.4 per cent of new mortgages for existing properties have flowed to property investors. In terms of new mortgages overall including construction loans and brand-new properties, that figure rises to 34.3 per cent.
By dollar value the proportion of mortgage lending flowing to investors recently hit the highest level since 2017, hitting a share of 36.2 per cent of all new housing finance.
With investors holding 26.2 per cent of occupied housing stock, this level of activity implies a growing proportion of the nation’s housing stock once more flowing to investors, unless otherwise offset by a much greater proportion of owner occupiers making fully cash purchases or investors selling out of the market at a greater rate than they are buying in.
Which raises the big question in all of this, how is the home ownership rate going to rise when the current set of incentives and policies have delivered 25 years of strong growth in the proportion of investor held housing stock instead?
Aspiration nation Both of the major parties like to paint themselves as the standard bearers for aspirational Australians, of folks who are trying to get ahead. But the simple reality is recipe for success is not what it once was.
In decades past, a household could work hard within the reality of their circumstances and work their way up to a median or well above median household income, then be able to purchase a home that reflected that.
In 1999, a household in the 80th percentile for income (higher than 80% of households), could purchase a home that was valued in the 80th percentile. Meanwhile the median earning household could purchase the median house. This is based a household having a 20 per cent deposit, additional cash for stamp duty and spending 25 per cent of gross income on the mortgage.
Today the median earning household can only afford 13 per cent of homes and even more affluent households in the 80th percentile are now competing for median priced homes. In states like NSW and Victoria its even worse. In NSW, households in the 80th percentile can only afford 1/3 of homes, while in Victoria less than half are affordable for these more affluent households.
Reality check Both Labor and the Coalition speak of hard work and the importance of home ownership, yet neither has the makings of a credible plan that would see home ownership rates increase back toward levels seen in the mid-1990s, let alone the all-time peak.
It was once said that doing the same thing again and again, and expecting a different result was the definition of insanity. After spending over $20 billion on first homebuyer support mechanisms over the past decade and actually lowering the home ownership rate during that time, it’s clear a different strategy is needed.
Ultimately, where we go from here is in the hands of the electorate. For decades political leaders have talked the talk on home ownership, then failed to walk the walk. Up until now that arguably hasn’t had a major political downside for the major parties, but with the issue of housing fast becoming one of the hottest in Canberra and around dining tables, one wonders if that will change.
Interested in learning more about property investing in Australia? Please visit our main website InvestorsPrime.com.au for loads of free resources, articles, videos and more to help you on your investing journey.
