Best Location To Invest
Melbourne’s City Population Explosion
Best Locations To Invest
Where you invest in is important. The right location will make a big difference to your future wealth in return of capital growth. The property selection criteria you select ten years ago is different from today. Ten years ago is all about being close to the city or in the Eastern suburbs. They are very cheap, so people with average income back then are able to afford, so it drives the price up. But an old house close to the city e.g. Richmond today is asking for about 700k-800k. Not everyone can afford to buy for investment and its not going to give 5% rental yield, the rental return is about 2.5%-3.5%, this mean it costs too much to look after the property. An expensive property will not give you the yield.
So how do you select a high performance property location?
1. Average Income
Look at people average income this determine how much they can afford to pay to buy a property
Melbourne median income is about 50k. So a husband and wife combine income is about 100k.
When they buy a property to live in or invest, their affordability is b/w 400k – 550k. Look for property in the 400k-550k it has the biggest demand. Where there is demand property price increase. Because one of the reason for property price to increase is demand and affordability.
2. Strong Population Growth
For example let’s use suburb A and suburb B as an example, and leave all other variables aside. Suburb A has a population increase of 10,000 a year and suburb B has a population increase of 80,000. Which suburb do you think will have more capital growth? Would you agree suburb B. So as an investor look for suburb with strong population growth.
3. Infrastructures development
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(Source: Melbourne’s City Explosion, The Age, Friday, April 1, 2011)
City’s population explosion:
- MELBOURNE’S outer suburbs are growing faster than any other area in Australia
- In the year to June 2010, Melbourne is estimated to have grown by 79,000 people, or more than 1500 a week
- In 2009-10, roughly 68 per cent of the city’s new people settled more than 20 kilometres from the GPO.
The City’s of Wyndham consists of the following suburbs.
As you can see from the map, The city of Wyndham has land that is so close to the city. Laverton is only about 17km to CBD and Point Cook only about 20 minutes drives to the City off peak. The west has the most affordable houses that’s why many people are moving toward the west. This cause property price to increase.
Massive infrastructures development to BOOM Melbourne Western suburbs
Under the State Government’s $4 billion project
$440M Wyndham Marina
- Marina Square leisure and retail centre
- Cafes, restaurants and speciality shops
- 10 hectares of open space, including lush parks and wetlands
- Scenic bay trail and bike path
- Marina Club
- Two new beaches for everyone to enjoy!
$1.5 Billion Williams Landing – A remarkable new town
Williams Landing is a remarkable new town taking off from the historic RAAF airfield, just 19km west of Melbourne’s CBD. You’ll live in a community with planned facilities such as a train station, bus interchange, direct freeway connection, a wide range of shops, restaurants, offices and entertainment. Williams Landing is a prestigious new land estate with extensive parklands, walking and cycling trails, and is conveniently located nearby respected private and public schools.
If you like more information or interested to invest in Melbourne fastest growing municipalities, leave your details below and i will get back to you.
