The old adage of “property prices double every 7 to 10 years” does not apply to all types of property nor does it apply across all of the Melbourne Metropolitan area.
Selecting the right suburb and the right precinct within that suburb is vital to success. Similar rules apply to residential and commercial property. The same basics apply to both. Proximity to transport, schools, shopping and employment are criteria for residential, and with commercial, access to freeways, transport for the workforce, roads suitable for B-doubles, building age, local amenity and nearby shopping centres are important.
Unless there is a preference for income over capital growth do not buy in country towns. Also lenders take a different view. Call Tim Hunt of Boss Mortgages for further info. 0412714665
Another thing to look out for is the number of properties that are for sale within a five kilometre radius of any selected area. Some suburbs in Melbourne have hundreds of houses for sale in a price range that is popular with property buyers. Avoid these. They are not good for capital growth.
To date this year nearly 18,000 residential properties have been sold which represents a 3% increase over 2013. Nearly 5,000 of these have been at auction with a success rate of 70%. This success rate is calculated on success at auction. The actual success of the auction method is much higher when sales concluded within 2 or 3 days of the auction are taken into account. Lots of properties are passed in and sold within 30 minutes of the conclusion of the auction but not counted in the “success” figure. The auction “method” is highly successful.
Call Brian Capp for further information 0418 500 483