According to this recent article by realestate.com.au, Melbourne’s hot property market has added hundreds of dollars a day to house prices in scores of suburbs over the last year. From Epping in the north at 12.5% to Cranbourne in the south at 13.6%, there has been a wide range of suburbs in Melbourne performing over and above the Melbourne average of 10%. 

So, the question on many homebuyers’ and investors’ minds is… am I too late to get into the market? Have I missed the boat?

In a nutshell the answer is no. Think back to when your grandparents told you stories of buying their first home for $25,000 and how it was so much money at the time. Or even your parents who bought a 4 x 2 in the inner suburbs for $250,000 and couldn’t believe they would have a mortgage that high. Now here we are in 2017 and these stories reinforce the absolute importance of viewing the property market from a long term perspective. 

 Melbourne median prices graph.

So yes the Melbourne property market has been strong in recent years, and is expected to slow over the next few, but taking a long term view of how property value will grow over decades rather than years will prove that it is never too late to start your property portfolio. Add to this the benefits of investing in early stage developments and growth areas rather than established suburbs and you have even higher returns to look forward to.

In addition to the basic math of the return on property compared to putting your money elsewhere, there is also the massive growth expected in Melbourne over the next 35 years. Melbourne is set to become a hub of mini cities as its population heads towards 8 million people by 2050, which will make it Australia’s biggest city. Social researcher Mark McCrindle said Melbourne is already developing into several cities within a city. “It’s our fastest growing city at the moment — it’s just overtaken Sydney in terms of its growth — and it will be the first city to reach eight million by 2055.

Suburbs like Werribee, Sunshine and Melton in the west, Sunbury in the northwest, Broadmeadows, Craigieburn, and Epping in the north, Box Hill and Ringwood in the east, and Dandenong, Frankston, Cranbourne and Pakenham in the southeast are all set to take on the mantle of mini cities.

“Whitehorse Towers is amongst a number of high-rise buildings either constructed or in development kicking off Box Hill as one of Melbourne’s premier mini-cities.” Source

From our point of view at OYOB, the suburbs where our current collaborative investments are located are doing well and providing good growth for our clients. These suburbs are in their early stages and already Mernda is up 6.3% in 12 months and Caroline Springs up 9.6%. When you consider the long term forecast, it reinforces the solid returns to be gained from putting your money into early stage property development.

So, whatever area of property you are thinking of investing in, don’t be overwhelmed by the decisions you need to make, get some expert help and make a start. ‘Now’ is always a better time to make start in property than ‘never’.

OYOB is an Australian-owned Property Development group based in Melbourne, who provide a holistic investment and property advisory service to clients. OYOB empower clients with the knowledge and education to make their own investment decisions, as well as providing genuine wholesale property development opportunities to realise wealth creation.

Find out how wholesale property investment in Melbourne can help you achieve your property investment goals.

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