New Apartments | Property Investment Melbourne

Investing in new apartments and units has usually focused on the Melbourne CBD area but not anymore...

With the decrease in inner city Melbourne investment property development opportunities, Melbourne developers are exploring the opportunities of new apartment developments available in the city's middle and outer ring suburbs.

Melbourne is now following the national trend of a stabilisation phase so it’s important for investors to consider potential long-term real estate prospects based on their overall historic performance. It seems we are in an investment property owners market with rents looking set to continue to rise in Melbourne as we see interest rates fall. Lower interest rates contribute to stronger cash flows. Investing in a new apartment in Melbourne has plenty of upside with the residential and investment property sector doing well. Some of the reasons for this are:

• Melbourne new apartment prices have historically been approximately 20-25% more affordable than Sydney, however the current price difference inner city apartments is over 45% meaning there is plenty of upside potential in Melbourne
• Melbourne's population is now increasing at a faster rate than many other capital cities leading to an increase in the demand for housing. Population growth is around 4%. More people more Melbourne apartments and housing
• Melbourne home prices are rising from a lower base providing a higher proportionate gain
• Many leading economic forecasters believe there is an undersupply of new apartments & new housing in Victoria.

Exactly like the stock market you need to stick to investing fundamentals and ignore whispers and opinions as to where the market is going.

Buying strong investment properties such as a new apartment is more about asset selection rather than timing. Timing is impossible to consistently get right whether it is buy shares on the stock market or a new apartment investment property in Australia. Don't wait for the right time to buy. Wait for the right property to buy.

Real estate investors in Melbourne should be aware that the main reason for investing in property is capital growth, and capital growth is driven by the scarcity of an asset. Remember, that when you select a new apartment as an investment, justifying it as a tax savings is a fundamental mistake for investors. You gain financial independence through the ongoing capital growth of your assets, not through saving tax. So if you get the location right then the returns and capital growth should follow. But remember property investing is a long term investment strategy.