Melbourne’s Most Affordable Liveable Suburbs
Montmorency, Burnside and Gowanbrae have been named as the suburbs of Melbourne where buyers can get the most out of their lifestyle while paying affordable housing rates. The three suburbs have been identified as prime targets for homebuyers and smaller investors. People’s Choice Credit Union’s latest report detailed the fact that these suburbs are amongst the most affordable, liveable suburbs in Melbourne – a great first investment for first home buyers amidst a buyer’s economy in the current coronavirus climate.
All suburbs on the report clocked in at less than $1 million for a home. Aspendale was the most expensive, with a median home value of $969,250. Other metrics were evaluated to include other variables that determine who topped the list, such as access to public transport networks, low crime rates and the most schools and educational programs. Seddon, Kalkallo and Mooroolbark won these categories, respectively.
The most food and beverage options are to be found in Point Cook, it seems, however Viewbank enjoys the best access to employment centres. Kurunjang offers the cheapest house price median, $424,000, while Macleod has experienced the highest growth rate in investment value – 7.3% over the last decade.
The logic behind including these non-financial metrics in the evaluation of most-affordable liveability was proliferated in terms of the fact that living is more than a mortgage repayment. The face value of any suburb is complemented by its provision of essential services, and a combination of availability of amenities and housing price median were used to judge each suburb.
Paying more for an investment in an area with good amenities is a savvy move, according to People’s Choice spokesman, Stuart Symons, because access to said facilities is key to accruing long-term tenants and ongoing capital growth.
The current coronavirus climate has presented a real opportunity for buyers, and has seen record-low interest rates being implemented as well as falls in the price of property. Buyers drawn towards ‘community atmosphere, schools, train stations and local shops’ are facing a premium market for investment and owner-occupier-ship and, at the moment, are able to enjoy these amenities at a very affordable rate.
Other impacts of the COVID-19 climate include other popular suburbs experiencing the greatest pricing impacts of anywhere on the market. Rental vacancies are rising due to increasing supply and low demand. Premium suburbs will be the least impacted, and tend to follow the overall trend of real estate during a crisis of by remaining relatively stoic in their value. Finally, auction activity is expected to return to normal, with only 5% of properties selling via online auction at the moment. With the easing back of restrictions, it’s predicted that the number of properties will increase back to its standard of 60%.
We’ll continue to keep an eye on the Melbourne property market for investment opportunities. Follow our blog for more insights into potential investments in Melbourne. Contact Pillar Financial today for a free confidential discussion. We are licensed financial practitioners and operate five days per week, from 9-5pm.