Written by: Greville Pabst, Executive Chairman of WBP Group
If you ask the average planner, our population is expected to reach 8 million by 2050. But, planners are usually conservative. I believe we will hit this target much quicker and Melbourne is attracting the lion’s share of migrants. We have waves of wealthy middle class, overseas investors to come in the next five to ten years, which will ensure that houses remain a very solid investment. Especially those under $1.5M and in particular, those properties located close to infrastructure.
What would I do?
Not all properties appreciate at the same level.
If it were me, and I had up to $1.5M to spend, I wouldn’t purchase property on a main road. I’d look for a property that possesses one or several ‘wow factors’ and/or delivers an element of scarcity.
I’d always be prepared to take a second look at a true ‘renovator’s delight’ in a central location. You’d be pleasantly surprised at what can be achieved if you’re willing to take the time to plan, roll your sleeves up and deliver a clever renovation.
If a house is out of the question, consider a villa unit or townhouse. They tend to have more land than apartments and are generally low density. If you have your heart set on an apartment, seek out a large apartment. Those built from the 1920’s, up until the 1970’s are especially attractive. Ground floor apartments with large courtyards are the crème of the crop.
As higher density living becomes the new norm in capital cities, space continues to attract a premium.
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Independent advice that is backed by data insights is a must for first home buyers to make sure you are not losing money and time looking at properties you really can’t afford.