Where to buy units in Melbourne
While many home buyers and investors focus on detached houses, in an expensive market like Melbourne, sometimes the best option with a limited budget is to wade into the unit market
While it’s true Melbourne unit prices often rise less (8.7% in 2021, according to CoreLogic compared to 15.1% for detached houses) those broad figures include newer units which typically underperform market.
So, what type of unit should you buy if you’re an investor or an ambitious home buyer?
Neighbourhood.
Let’s start with location. The best are nearly all in Melbourne’s inner and inner-middle ring.
Look for areas with strong fundamentals, including superior transport, high residential amenity (e.g. tree filled streets with consistent architecture), charming shopping villages and good quality schools
Some of our best bets for 2022 include:
Elsternwick $661,000 (median unit price)
Essendon $625,000
Fairfield $630,000
Hawthorn East $672,500
Complexes.
Many developments over the last 20 years suffer from building quality issues and the surge in construction means they have little scarcity value.
So, your aim is to buy into a 20th century complex with a period or conventional style.
Avoid complexes with expensive facilities like pools and gyms or single use buildings, like student housing.
Street appeal is important but security for residents is the overriding concern.
The Apartment
With the surge in newly built small apartments, buyers should target one or two bedroom units with a minimum size of 50 metres square.
Avoid most ground floor units and look for a liveable home with a logical, conventional floor plan and great light filled aspect. Bonus points for a balcony or private outdoor space.
Your unit needs to be on a strata or stratum title which includes a designated car space.
What you can rule out by online search.
We always recommend you get professional, independent advice before investing your life savings in real estate.
As an insight, our first step is to rule out units with these characteristics when viewing listings online:
New construction
Main roads or next to train stations
Mixed use streets
Streets crowded with blocks of flats
Car parking bays at the front of buildings
Inner city high rise.
When you engage an experienced buyers agent like Property Mavens, we will show you how minimum land value ratios and rental demand factors should also inform your decision.
Author; Miriam Sandkuhler
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