Investors have waited with patience for Victoria’s property market downturn to end. The signs are pointing to the end of the wait.

Along with Sydney, Melbourne is right in the centre of all the horror stories about the Australian property market. Prices keep going down, at times plummeting, and many investors gave up and looked to healthier markets somewhere else. But those who stuck with Victoria or plan on investing soon have a lot to look forward to.

Wealth for Life where people are moving
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The state’s economy is expanding at a rapid pace. If you look at the right information, you can see that the market is much more attractive than it might seem at first glance. 

Melbourne has always offered many advantages over other big markets. Not only is this still true, but the advantages are getting amplified as you read this. Any time now, Victoria will likely go back to its old investment hotspot status.

But, how can you be sure that investing in Victoria really is a good decision?

Come along and you’ll see.

1. Impending Market Recovery

Since the beginning of 2018, ‘market recovery’ is the thing that all investors waited with bated breath for. Unfortunately, what happened was one price depression after another. This would continue for the rest of the year, as the projected decline for 2019 sits at 10.8%.

But, how can this be a good thing?

Just look beyond this year and you’ll see. For 2020, experts predict an upswing of 1.3%. Better yet, 2021 should see an increase of 6%. According to Moody’s Analytics:

‘By early 2020, house values across most of Greater Melbourne are forecast to experience a return to month-on-month growth. Overall, Greater Melbourne house values are expected to tick up 1.3% in 2020, with Melbourne-Inner East and Melbourne-North East leading the recovery.’

As far as regional homes in Victoria go, we should see an increase of 3.3% in 2020, followed by 1.5% in 2021.

For those of you who wanted to see an upbeat report of future recovery, these are the numbers that matter. But of course, there’s much more that you should consider.

2. Infrastructure Investment Spike

Right now, Victoria is enjoying an infrastructure investment that no other state comes close to. More specifically, there’s $100 billion worth of projects in the work. This time last year, the state saw an increase in infrastructure investment of $40.2 billion year-on-year. From farms to skyscrapers, many projects will support Victoria’s flourishing growth.

Wealth for Life Market Recovery
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In the words of State Treasurer Tim Pallas:

‘These projects vary in size and scope but they all leave an indelible legacy on our state. They are indicative of a government that gets things done, delivering the infrastructure Victorians need, right across the state.’

As you might know, a general rule of property investing is to go where people are moving to. And considering Victoria’s stunning growth, it’s safe to say that it will attract many new faces. Between 2014 and 2018, 340,000 new jobs popped up in Victoria. This trend is continuing, which indicates that more people will want to move to Victoria.

3. Low Risk

In relation to the above, Melbourne will be one of the safest cities to invest in in the foreseeable future. The level of infrastructure investment in Melbourne indicates stable growth that will go on in the next few years.

Wealth for Life demand
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As a result of both public and private sector investments, Melbourne is and will be awash in job opportunities. This means that we can expect an influx of people looking for work. 

Out of the top 10 companies in Australia, six have headquarters in Melbourne. This extends to a third of Australia’s 100 biggest companies. With all the investments made and planned, it can only get better. This will drive people to not just Melbourne but all across Victoria.

4. Population Growth

The above has plenty of backing too. According to the Australian Bureau of Statistics, Victoria will experience the fastest population growth over the next few years. By 2027, there would be a 60%-130% increase to a total population of 7.5 to 7.9 million.

Melbourne alone will have about 6 million residents by 2033, as projected by the Government of Victoria. This would go up to around 8 million by 2051. 

Think about where all these people are going to live. With steady population growth, the demand for properties in Victoria will go up in turn. Pair this with the infrastructure and employment growth and you get a jackpot of a growing area.

We’re not only talking about population growth here. When the demand for properties increases, the prices will follow. Those who invest right now have a lot to look forward to. That is if they’re able to see the big picture and look beyond short-term gratification.

Of course, there’s more to this than meets the eye. There are all kinds of factors that you have to take into account apart from the numbers. But the macro trends are certainly in favour of Melbourne in particular and Victoria as a whole.

5. Affordability

This is a major advantage of Melbourne over Sydney. Even during the downturn, those who lost faith in Sydney’s property market turned to Melbourne first and foremost There are good reasons for this.

Wealth for Life Hidden gems
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For a start, Melbourne is much more affordable in comparison. The median home price sits at $650,000, which compares favourably to Sydney’s $815,000. While both markets have softened, Melbourne still offers more opportunities.

This is because, along with the rest of the state, Melbourne is perfectly positioned for growth. While investors can still find some hidden gems in Sydney, you can find more of them in Melbourne. Not only that but you’ll be able to buy in Melbourne for less.

6. Versatility

When you combine the above factors, you’ll see that there are all kinds of properties for you to invest in in Melbourne. From small apartments near the CBD to suburban family homes, there’s something for every investor’s needs.

Because of the above average population growth and substantial infrastructure spending, you’ll be able to invest in properties that cater to many lifestyles. This makes it easier to build a diversified portfolio that will lower your risk and increase the likelihood of long-term gains. 

Of course, apartments are very likely to be hotter than other dwelling types. Most people will want to live as close to the city centre as possible, so the demand will be there.

Besides, there’s currently an undersupply of apartments in Victoria and Melbourne. Experts agree that not enough of them are getting built or offered on the market to meet the increasing demand. Units might be your safest bet at the moment. But as mentioned, the sky is the limit when it comes to choices in Melbourne.

The Next Big Thing

Judging by everything you can see here, it’s safe to assume that Victoria is one of the best choices for property investors right now. Of course, Melbourne should be at the top of mind, but that doesn’t mean it’s the only investment hotspot of tomorrow.

Wealth for Life Melbourne property
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It’s important to remember that these are only projections and that you have to dig much deeper to make smart investment moves. But compared to the trends in other states, Victoria is definitely worth considering.

Are you ready to turn the temporary market downturn to your advantage? Wealth for Life can help. We’re all investors ourselves. Reach out to us and we’ll share the strategies that have proven to work.

Investors have waited with patience for Victoria’s property market downturn to end. The signs are pointing to the end of the wait.

Along with Sydney, Melbourne is right in the centre of all the horror stories about the Australian property market. Prices keep going down, at times plummeting, and many investors gave up and looked to healthier markets somewhere else. But those who stuck with Victoria or plan on investing soon have a lot to look forward to.

Wealth for Life where people are moving
  • Facebook
  • Twitter
  • Google+
  • Pinterest
  • Gmail
  • LinkedIn

The state’s economy is expanding at a rapid pace. If you look at the right information, you can see that the market is much more attractive than it might seem at first glance. 

Melbourne has always offered many advantages over other big markets. Not only is this still true, but the advantages are getting amplified as you read this. Any time now, Victoria will likely go back to its old investment hotspot status.

But, how can you be sure that investing in Victoria really is a good decision?

Come along and you’ll see.

1. Impending Market Recovery

Since the beginning of 2018, ‘market recovery’ is the thing that all investors waited with bated breath for. Unfortunately, what happened was one price depression after another. This would continue for the rest of the year, as the projected decline for 2019 sits at 10.8%.

But, how can this be a good thing?

Just look beyond this year and you’ll see. For 2020, experts predict an upswing of 1.3%. Better yet, 2021 should see an increase of 6%. According to Moody’s Analytics:

‘By early 2020, house values across most of Greater Melbourne are forecast to experience a return to month-on-month growth. Overall, Greater Melbourne house values are expected to tick up 1.3% in 2020, with Melbourne-Inner East and Melbourne-North East leading the recovery.’

As far as regional homes in Victoria go, we should see an increase of 3.3% in 2020, followed by 1.5% in 2021.

For those of you who wanted to see an upbeat report of future recovery, these are the numbers that matter. But of course, there’s much more that you should consider.

2. Infrastructure Investment Spike

Right now, Victoria is enjoying an infrastructure investment that no other state comes close to. More specifically, there’s $100 billion worth of projects in the work. This time last year, the state saw an increase in infrastructure investment of $40.2 billion year-on-year. From farms to skyscrapers, many projects will support Victoria’s flourishing growth.

Wealth for Life Market Recovery
  • Facebook
  • Twitter
  • Google+
  • Pinterest
  • Gmail
  • LinkedIn

In the words of State Treasurer Tim Pallas:

‘These projects vary in size and scope but they all leave an indelible legacy on our state. They are indicative of a government that gets things done, delivering the infrastructure Victorians need, right across the state.’

As you might know, a general rule of property investing is to go where people are moving to. And considering Victoria’s stunning growth, it’s safe to say that it will attract many new faces. Between 2014 and 2018, 340,000 new jobs popped up in Victoria. This trend is continuing, which indicates that more people will want to move to Victoria.

3. Low Risk

In relation to the above, Melbourne will be one of the safest cities to invest in in the foreseeable future. The level of infrastructure investment in Melbourne indicates stable growth that will go on in the next few years.

Wealth for Life demand
  • Facebook
  • Twitter
  • Google+
  • Pinterest
  • Gmail
  • LinkedIn

As a result of both public and private sector investments, Melbourne is and will be awash in job opportunities. This means that we can expect an influx of people looking for work. 

Out of the top 10 companies in Australia, six have headquarters in Melbourne. This extends to a third of Australia’s 100 biggest companies. With all the investments made and planned, it can only get better. This will drive people to not just Melbourne but all across Victoria.

4. Population Growth

The above has plenty of backing too. According to the Australian Bureau of Statistics, Victoria will experience the fastest population growth over the next few years. By 2027, there would be a 60%-130% increase to a total population of 7.5 to 7.9 million.

Melbourne alone will have about 6 million residents by 2033, as projected by the Government of Victoria. This would go up to around 8 million by 2051. 

Think about where all these people are going to live. With steady population growth, the demand for properties in Victoria will go up in turn. Pair this with the infrastructure and employment growth and you get a jackpot of a growing area.

We’re not only talking about population growth here. When the demand for properties increases, the prices will follow. Those who invest right now have a lot to look forward to. That is if they’re able to see the big picture and look beyond short-term gratification.

Of course, there’s more to this than meets the eye. There are all kinds of factors that you have to take into account apart from the numbers. But the macro trends are certainly in favour of Melbourne in particular and Victoria as a whole.

5. Affordability

This is a major advantage of Melbourne over Sydney. Even during the downturn, those who lost faith in Sydney’s property market turned to Melbourne first and foremost There are good reasons for this.

Wealth for Life Hidden gems
  • Facebook
  • Twitter
  • Google+
  • Pinterest
  • Gmail
  • LinkedIn

For a start, Melbourne is much more affordable in comparison. The median home price sits at $650,000, which compares favourably to Sydney’s $815,000. While both markets have softened, Melbourne still offers more opportunities.

This is because, along with the rest of the state, Melbourne is perfectly positioned for growth. While investors can still find some hidden gems in Sydney, you can find more of them in Melbourne. Not only that but you’ll be able to buy in Melbourne for less.

6. Versatility

When you combine the above factors, you’ll see that there are all kinds of properties for you to invest in in Melbourne. From small apartments near the CBD to suburban family homes, there’s something for every investor’s needs.

Because of the above average population growth and substantial infrastructure spending, you’ll be able to invest in properties that cater to many lifestyles. This makes it easier to build a diversified portfolio that will lower your risk and increase the likelihood of long-term gains. 

Of course, apartments are very likely to be hotter than other dwelling types. Most people will want to live as close to the city centre as possible, so the demand will be there.

Besides, there’s currently an undersupply of apartments in Victoria and Melbourne. Experts agree that not enough of them are getting built or offered on the market to meet the increasing demand. Units might be your safest bet at the moment. But as mentioned, the sky is the limit when it comes to choices in Melbourne.

The Next Big Thing

Judging by everything you can see here, it’s safe to assume that Victoria is one of the best choices for property investors right now. Of course, Melbourne should be at the top of mind, but that doesn’t mean it’s the only investment hotspot of tomorrow.

Wealth for Life Melbourne property
  • Facebook
  • Twitter
  • Google+
  • Pinterest
  • Gmail
  • LinkedIn

It’s important to remember that these are only projections and that you have to dig much deeper to make smart investment moves. But compared to the trends in other states, Victoria is definitely worth considering.

Are you ready to turn the temporary market downturn to your advantage? Wealth for Life can help. We’re all investors ourselves. Reach out to us and we’ll share the strategies that have proven to work.

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