If you are thinking of investing in real estate, look no further than Melbourne. Statistics by CoreLogic indicates that Melbourne has the upper hand in property values than most of the major cities in Australia.
Over the 2017-18 financial year, Melbourne dwelling values increased by 1.0%. Although values rose for the sixth consecutive financial year, it was the slowest rate of growth out of any of those six years and well down on the 13.0% increase over the 2016-17 financial year.
Melbourne and regional Vic annual change in value
Throughout regional Vic dwelling value growth actually accelerated throughout the financial year from an increase of 4.8% in 2016-17 to 5.0% in 2017-18. The 5.0% increase in values over the year was the greatest financial year increase in values since 2010-11 when values rose by 6.1%.
The above 1 bedroom apartment in Grove area with 1 garage,1 study room, is going for only $520k.These apartments are selling like hot cakes at the moment.
THE GROVE – KEY POINTS
High Rental Demand
– due to Professional Migration of workers closer to the CBD.
- Low vacancy rates of 1.8%
- Strong Rental yield averages 4.25% pa.
- Population Increase of The City of Moreland over 25% (50,000 people) in the next ten years
- Perfect Local Demographics for renting –
i. 50% work in management or professional roles,
ii. 40% of the population are aged between 20 to 39,
iii. 30% of the population are single.
2. Excellent value:
a. In comparison to other suburbs of equal proximity to Melbourne CBD – 10% Bigger Apartments & 10% lower prices.
b. The Grove is better value compared to competing projects by up to 16.2% (ie. the York next door)
3. Strong price growth of 7.45%
4. Extensive Amenities:
a. Health Club – commercial size & equipped; Private dining room; Two outdoor BBQ areas and two Outdoor seating area; Bocce field; Table tennis Area; Communal; Spa; Business Centre.
b. Amenities Attract Residents and Renters – enhancing lifestyle, increasing rental return and reduces turnover.
c. Café’/Restaurant – Axel Coffee Roasters provides a major draw card as one of Melbourne’s preeminent Café Operators.
5. Prime Location/Transport:
a. 6km to CBD — under 10 minute commute, Melbourne University & RMIT both 12 min commute
b. Public transport to CBD — Albion Street, which The Grove has frontage on to has a tram stop (2 min walk), bus stop (30sec walk), train stop (15 min walk) and bike trail (one min away) all that take you directly to the CBD
c. Freeway very accessible, 4 minute commute.
With this project, the developer will be giving you a $60k rebate at settlement ($30k on each property). This rebate can assist you to pay down and cancel any credit card debts , personal loans and also pay for stamp duty. What is required now for this is a 10% deposit ($52,000.00) for each lot. The remaining balance and loan will be applied for in roughly May 2019, 2 months prior to settlement. This is when you will receive the rebate. This $30k cash back was only on offer until the EOFY, but you can negotiate with the developer. This property is a great investment in a fantastic location to start your portfolio. As this is not complete until about 1 year’s time, this gives you an opportunity to get your finances in order before you have to apply for finance.