A major boost to personal wealth.
In the Editorial in The Herald Sun this morning the following was quoted:
“Rampant increases in Melbourne’s property prices at a median of $818,237 which is approaching Sydney’s peak of $945,000-has provided a major boost to personal wealth but has also made the market a bridge too far many would-be first home entrants.”
In our view the median price should not be used as a guide to what first home buyers have to pay to get into the market. A search on realestate.com.au reveals that is a big supply of houses priced from $450,000! It is about time the “median price” was not used as a deterrent to those making their first foray into the property market.
3.4% of Victorians expected to move to regional areas.
The same newspaper ran a story about where we live, based on research carried out by PWC.
It stated that only 3.4% of Victorians expected to move to regional areas despite the fact that Bendigo for example, had a high liveability score. Not a very high number that expect to move to regional areas.
It is not surprising when you consider that Melbourne is a very exciting place to live with good employment opportunities and great sporting and entertainment attractions. As far as real estate investment in the regional cities is concerned, there are higher cash returns on investment properties but capital gain is much less over the long term for both investment and owner occupation properties.