As most people pointed out that South Eastern region- is the place to live in Melbourne and reason why property in this area are expensive.
I would like to think that next potential region – e.g. north west region (Sunbury, Airport West, Digger rest )would be the next potential good investment region. Reasons being – good infrastructure, cheap land, near airport and future home of the Melbourne market.
It would be more of capital gain than CF+ though.
I am currently looking at Sunbury – land is price at about $200/msq
Care to share some views especially those who are now living in that area.
Thanks and Regards
TomThe best indicator of future performance of a suburb or region has always been its past performance and the longer the past history, the more accurate this will be.
In other words, if you are researching 2 suburbs and for the last 45 years suburb no.1 has had average capital growth of 12% (just above average for Melbourne (like many south eastern suburbs) and you compare it to suburb no.2 which has had average capital growth of 8% (like many western suburbs)… the most likley thing to happen is:-
Suburb no.1 will keep growing at 12% p.a.
and…
Suburb no.2 will keep growing at 8%
And the longer the past history of this level of growth, the better the predictive factor.
This is not always true – things like major infrastructure changes etc can effect growth.
Sure suburb no2 will be cheaper, but people don’t choose where they live on price alone.
It’s just that more people choose to live in Melbourne’s SE suburbs. If they are born there they rarely move across to the other side, yet lots of people born in the northern and western suburbs move to the south east.
Michael Yardney
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FREE subscription http://www.PropertyUpdate.com.auHi Michael, agreed with view – that people don’t live on price alone but price does take up a high % value in decision making.
Also for new PI, these are the locations would be the the place to begin looking for a 1st property(affortability).Regards
TomI have always lived in the Northern suburbs and you couldnt pay me to live over the other side. The traffic nearly drives me mad every time I have to venture over there. Its all so much more crowded and takes longer to get served. The air is definitely fresher over here as less pollution and traffic and its quicker to get out to the beach or country towns. It takes me about 20 mins on the freeway to Chadstone if I want to. Having said that people in Sunbury are now complaining that it has lost its village atmosphere and is becoming too big. However I definitely wouldnt expect it to “boom” I think it will just tick along as it has always done. It is quite far out – about 30 mins from the city on a beautiful freeway, Oh but I forgot, you all think that is quite close in.
Fern
Fernfern I couldnt agree more, Ive said it once and I’ll say it again it amazes me the ignorance, arrogance and plain stupidity of people from the eastern suburbs. They somehow think congestion, pollution and bumper to bumper traffic is a good thing lol!!! I for one am a convert and I think it is very narow sighted to think people will keep buying way out in the eastern suburbs paying rediculous prices for little substance when for the same price they can get much better value for money and twice as close to the city with a quater of the congestion.
I lived in Glen Waverley and had to contend with 6 lanes of constant traffic all day everyday. One day I woke up and thought ‘why in the hell am I paying top dollar to live in this dump’ Sold up, took my money, bought a nice house within 8km of the city. no traffic problems, parks, water, restaurants….hahahahahah what more could yiou want???
Hmm, I guess in term ofbuying for own stay, North west sound good but for investment point of view, I think the investment growth rate would be slow as mentioned by Michael Y.
Today when I look in Realestate.com.au, they are more cheap land for sale about 100k range. Very attractive!
Regards
Tom
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