22 Bangalore St, Kensington, is the ideal long term investment.
MELBURNIANS are staunch loyalists when it comes to their side of the city, but when it comes to investing, it’s best to buy with your head, not your heart.
While there are investment gems in every direction, there are certain areas and types of property that provide greater bang for your buck.
Our experts tell you where’s best to invest: north, south, east or west.
Wakelin Property Advisory associate director Jarrod McCabe said Kensington was an area to consider when looking to invest in the north.
“It’s a great suburb with a lot of period accommodation, which is only going to become a scarcer asset,” he said.
“It’s very well serviced in and out of the city and nice and close to the hospitals, so there are consistently good levels of demand for tenancy and resale.”
is an example of the period homes in Northcote that have had strong growth in the past five years.
9 Brooke StSource:Supplied
REA chief economist Nerida Conisbee said the inner north’s popularity with younger buyers made it a safe bet for investment.
“There is huge rental demand in areas such as Clifton Hill and Fitzroy, so that’s a fairly safe investment,” she said.
“Inner north areas such as Northcote have had great growth in the past five years, while outer areas such as Research and Warrandyte had really high demand last year, which will lead to strong price growth.”
8/37 Victoria St, Elsternwick, is on the market with a guide price of $650,000 to $725,000.
Mr McCabe said the older-style apartments on offer in Elsternwick were the perfect proposition for investors.
“There are a lot of 1930 to 1970s-style apartments built, which have the large proportions that appeal to owner occupiers, and are desirable properties for those looking for longer-term rentals,” he said.
“The other factor is that the land to apartment ratio is good, so you are getting more for your money than in newer-style apartments.”
Ms Conisbee said there were good growth areas moving around the bay to the southeast.
“If you head along the beach toward Frankston, you are seeing consecutive suburbs hitting that $1 million-mark,” she said.
“Suburbs such as Carrum and Chelsea still have some great options that should have good growth moving forward.”
1/40-42 Elphin Grove, Hawthorn, has a guide price of $650,000 to $700,000.
The leafy eastern suburb of Hawthorn is a good choice for those looking to make their property work for them, Mr McCabe said.
“We really like Hawthorn for obvious reasons,” he said.
“There’s everything from Art Deco through to 1970s properties, that go from entry level through to the multi-million dollar bracket, which means there is a good cross-section of people in the area and strong demand.”
As in Kensington and Elsternwick, Mr McCabe said there were factors that combined to make the suburb a good area for investment.
“Land value is strong and there is a scarcity of assets, so demand is always there; hence, capital growth will go up,” Mr McCabe said.
“There is also very consistent rental demand, so that is a good combination.”
Former ‘The Block’ contestants Bec and George Douros have seen the value in Spotswood, renovating
While areas such as Yarraville and Seddon have already had a surge in popularity, Ms Conisbee said there were spots to watch in the inner west.
“That growth is going to continue to move out in the western suburbs,” she said.
“In my opinion, moving a couple of stops further along the Williamstown Line to places like Spotswood and buying something now would be a very wise investment.”
Older-style houses were the best option for investment, as aside from capital growth there was potential to add value through renovation, Ms Conisbee said.
She also said that if buyers were willing to head further southwest out of the city, that investing near Geelong was a smart idea.
This article was sourced from http://obd2news.com