RE: Melbourne, Australia

It's student accommodation.  Good luck getting it to grow in value.  You can do better with your money.  Take a look at houses in Ballarat for instance.

In my opinion it is a little bit cheap for Melbourne property. I do not think you will be able to find anything decent for this price, but good luck anyway!

Hi All,

Yep there is better value out there,

http://www.realestate.com.au/property-house-vic-colac-110190765 (disclaimer this property may not suit your investing needs, seek professional advice for your situation blah blah etc)

The reality is that you can get cheap property, and good rent, but it may not actually be anywhere near Melbourne. Or Sydney or Perth or any capital city.

The good thing is these regional areas do get some growth and you can add value through reno's when you get more confident.

My opinion.

Cheers

D

zmagen,

to quote Freckle – what a load of rubbish! (take it as the lol it is)

So the median (middle) house price went down by 5k. not really a big drop in the scheme of things. The mortgage repayments on something around median is probably $2500 per month maybe. So this equates to 2 months worth of repayments. Not really worth the dramatic headline.

There is no bubble.

And really it depends where in Melbourne you are buying, it's like if you said Los Angeles house prices have dropped, or Tokyo house prices have dropped… you'd then ask where in Tokyo, where in LA.

There are some good buying bits of Melb, you can still buy under $500k in heaps of areas, then you have the pricier bits, over the 1.5mil mark.

Just keeping it real friends.

D

LOL,

If they keep falling JacM and I will be forced to become cash money heroes and buy up all that terrible, terrible property in Camberwell, Kew, Mount Lawley, Manly, all those places where house prices will crash……….

Also since JacM and I also have our tent strategy set up, we will redevelop our properties into tent towns and charge rent.

Bubble – we got dat covered.

I can joke about it, I wouldn't be joking if were likely to happen.

D

Good guess! I think you are pretty much on the money.

Will time turn back to 30 years ago?

Cheers

D

I think the Melbourne market will continue  to grow but it may be slow for the next few years. Personally I prefer to develop property in Melbourne because at least by doing that we can get property at a real wholesale price. If you are going to pay retail at least do your due diligence very carefully. Make sure that there is demand in the area. Stay away from the city area of Melbourne there are 1000s of apartments coming out of the ground. The end result will be very slow growth. Inner city areas are good. As an example we are building in Essendon. We have looked at Kew and bayside as well.

Also look at what properties are actually selling for that will tell you what the properties that you are looking at are worth

No idea, pure speculation, but the one trick pony economy and bunkering in china (and I don't believe for one second their "growth forecast upgrades" on the eve of leadership changeover) have to take their toll, and Australia, Pre or post GFC v.1, is as one-tricky as they get, plus heavy in household debt like there ain't no tomorrow. All those job and empty mining town losses will have to ricochet somewhere. Hope I'm wrong, but a continued boom or anything beyond modest, barely profitable growth, is not a given, far from it, in my opinion.