What to look for when we come out of lockdown.
It was all going so well and then, like a bad dream, we’re back in lockdown.
Frustrating for sure, but I see this as a short distraction for home buyers and investors.
The real story is in the numbers. Melbourne property prices were up 1.8% in May and up 5.0% over this time last year - handy growth considering the dire predictions last year.
But those rises have not been even and come with distinct differences to what we’ve seen before.
If you’re looking to buy, my research shows three property types are best positioned to make the most of the post-lockdown market.
Family homes (some of them)
The rebound has lifted one property type above all else: the family suburban house.
Those doing best are in middle-ring suburbs like Keilor East, Sunshine, Highett, and Preston.
If you want to profit from future growth, a good selection is a key. Look for 3-bedroom houses on decent blocks of 500m2 or more which cater for work from home in a light-filled room.
Your house will need to be in a quiet location close to transport for those who still go into the office 2 or 3 days a week, and near amenities like schools, parks, and a village-style shopping centre.
Generation X apartments
Left out of the big rises to date: the humble inner suburban apartment.
Yet I see great value in these as the 2021 market evolves. First home buyers are getting priced out of the house market and investors are returning, looking for an affordable option.
That moves apartments into centre frame, particularly those in the $500,000 - $700,00 price bracket
Rule out units in complexes that have gone up in the last 15 years, are primarily built of concreate or in one of those new hideous towers.
Instead, zero in on small brick complexes built in the 1960s and 1970s - the Gen X apartments as I like to call them
Good security is a must as is a car park on title (we’re not all on eScooters yet).
What you’re aiming for is a unit with quiet liveability, a courtyard or balcony for entertaining in a small complex without any of the build-quality issues we see in many of the Gen Z complexes thrown up over the last 15 years.
A regional home.
This time last year, I was warning about the “everyone is moving to the country” hype taking over the media and already, weakness in some of these markets is becoming apparent
Some, but not all. Regional property’s big advantages over Melbourne - affordability and rental yield - is generally outweighed by much lower long-term capital growth.
But our two biggest regional cities, Geelong and Ballarat, are a bit different. The right properties in these centres have “Melbourne-lite” growth and good yields.
Let me stress that again - the right properties. Don’t charge in and buy the first thing that looks like a bargain.
What you are looking for is a smallish 3-bedroom family home a short drive to the Melbourne train and 15 minutes’ walk to shops, parks and good schools.
If the time has arrived for you, call me for a no-obligation chat on 03 9988 2266 and we’ll see if we can make your post-lockdown rebound a lucrative one!
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