How to buy the right investment property in Melbourne.
How to buy the right investment property in Melbourne?
Lauren Staley, THE EXPATRIATE Property Specialist in Melbourne, sits down with infolio Property Advisors North West Melbourne and Geelong Specialist Tristian Utting to discuss what key attributes a property must have for them to purchase in the Melbourne, Geelong and Deep Bayside Areas.
“When purchasing for an investor, it is not dissimilar to an owner occupier, except the emotion is removed. Location, floor plan, orientation, and development within the area are key things he’d look for.” Says Tristian.
Why is yield important? Asks Lauren.
“Interest rates and land tax increases mean good yields are important to an investor.” Says Lauren. She then asks Tristian how he decides on where to purchase a property to achieve a yield that will be able to support the ongoing costs.
Tristain responds. “Demographics Pays into the choice of a property.
Deep Bayside and Geelong are two areas where we strongly focus on that have good access to Melbourne but with working professionals, 30 - 60km from Melbourne, can still get into the office nice and quickly.”
How do you set a price limit for an investment property?
“We set an analytical number. Once we get to that number, we are happy to walk away.”
What area’s are you buying in?
“The personal preference we have in mind is Geelong and, in particular, Belmont. Belmont sits just on the other side of Herne Hill, Geelong West, Newtown, which are your sort of premium pockets, so people who can’t quite afford to get into those areas are pushed into Belmont. Belmots got, I think you’d fair to say we’ve had a preference for stocks that are built 70s to 90s, which it has a ton of. You have strong professionals that are working either in Geelong or Melbourne, and the growth over the longer term in that particular pocket has been good.”
Why do we like to buy in Deep Bayside?
“Similar to Geelong and Belmont in that Seaford is where you are getting good size blocks of land, in Chealsea, Bon Beach, Edithvale, flowing across into Seaford has been where the gentrification of a location. It fits the mould of properties that have been built a little bit further back in Seaford at the 50s to the 70s, but through to the 70s and 80s. The scope of those properties is that they are immediately rentable for the short to medium term, but you can do a renovation and manufacture some equity that way.”
The Expatriate always tries to make sure all information is accurate. However, when reading our website, please always consider our Disclaimer policy.
