Overall, Victoria continues to deliver strong returns for property investors, despite concerns about the future stability of the Melbourne property market due to oversupply in some areas.
A key factor is Melbourne's continuing strong population growth. The latest population figures for Australia show that Melbourne had the largest population growth of all capital cities. That growth has seen Melbourne gradually closing in on Sydney as the nation's biggest city.
Melbourne's investment property market has performed very well in recent years. Melbourne continues to experience strong population growth from overseas. Victoria's population has significantly increased above the national average and it is expected to continue doing so in 2015 and beyond.
Stick to property investing fundamentals and ignore opinions as to where the market is going, whether good or bad. Buying strong investment properties is more about asset selection rather than timing. Timing is impossible to consistently get right. Don't wait for the right time to buy. Wait for the right property to buy.
Like any real estate investment, locating and purchasing the right investment property in the right suburb requires careful consideration and research. Buyers should look for suburbs that have strong positive attributes like overall appeal of property, access to public transport, schools and shops; close to main roads and, most importantly, areas that show regular population growth.
Affordability. Melbourne residential and investment property sector is performing well and many analysts predict it to continue doing so. Melbourne also continues to show value when considered with the price levels in Sydney.
Pent up demand. Caution required in the short term, many leading economic forecasters believe there is an oversupply of new housing in Melbourne's inner city areas of Docklands and the CBD.
High consumer confidence motivates people to make more long term decisions such as purchasing a new home.
Improved immigration numbers. Melbourne's population is now increasing at a faster rate than most other capital cities, with the exception of Perth and Brisbane. This will ultimately lead to an increase in the demand for housing and property investment. Melbourne's population growth is around 2% - well above the national average of 1.8%.
Remember, you do not attain financial independence through saving tax - you gain financial independence through the ongoing capital growth of your assets. So, get the location and returns right and the capital growth should follow.
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