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Where to find the best investment properties in Victoria and Melbourne
Where to find the best investment properties in Victoria and Melbourne

With the remarkable transformation seen in Melbourne and Victoria’s investment property market, now is the time to revisit and examine the hotspots for 2024.

Join Kate as she shares some locations to look out for in regional Victoria and across Melbourne.

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Hello everybody how are you all doing out there? Still genuinely interested. I’m Kate Hill bringing you the best unbiased honest content on property along with fantastic hints and tips. Stay tuned to get a Victoria and Melbourne property update today.

[Music] Melbourne’s property market has undergone a remarkable transformation over the past year transitioning from a struggling market to a growing one and emerging as a national leader in growth momentum. Nearly half of Greater Melbourne’s suburbs are now considered rising markets with an impressive 87% of them showing positive rankings in Terry Rider’s Hotspotting analysis.

Now this shift represents a significant turnaround from the situation at the beginning of 2023. This resurgence in market activity extends across the entire greater Melbourne area with the exception of the Mornington Peninsula. Most locations are experiencing thriving market conditions.

Furthermore Melbourne’s inner city apartment market particularly in the City of Melbourne has witnessed a surge in buyer demand. In the outer ring municipalities high demand is evident with positive sales activity trends observed in suburbs across the city of Casey Melton, Wyndham and Whittlesea.

Now as Melbourne enters 2024 and we’re kind of in there, the property market is poised with strong momentum signaling expectations of solid price growth in many markets throughout the year, showing promising signs of improvement compared to the previous year’s results. In 2023 regional Victoria’s property market also witnessed steady improvement albeit not as dramatic as Melbourne’s recent surge but it wasn’t coming off the same low. Throughout the year regional Victoria saw a strengthening trend especially in the second half with the number of thriving locations nearly doubling while two-thirds of areas experienced positive sales activity some regions lagged in embracing the overall recovery momentum.

Comparatively regional Victoria’s 66% positive trend rate falls short of Melbourne’s 87%. Now Geelong remains a standout performer with its suburbs like Armstrong Creek, a lot of new properties leading the recovery. Similarly Bendigo boasts a positive market particularly in affordable suburbs like Eaglehawk up north offering median house prices significantly lower than greater Melbourne. Nearly every suburb in Ballarat produced double- digit growth in median house prices during 2021 and into 2022. The area’s long-term growth rates are among the best in the nation. Ballarat was recently identified by the ABS as the fastest growing inland city in Australia, and according to some forecasters can expect more strong price growth.

In 2020 Ballarat was named as one of Australia’s most livable regional cities and the best regional city in Australia for economic growth. The Cardinia and Mitchell LGAs near greater Melbourne exhibit promising momentum driven by towns like Officer and Pakenham. Other areas like the Macedon Ranges, Moliagul, the LaTrobe Valley, all demonstrate consistent markets with relative affordability affecting both home buyers and investors.

Additional regional centres like Wodonga, Wangaratta, Benalla, Echuca, are also experiencing positive market trends. Now I’m not saying that all of those locations make great investments but overall Victoria’s appeal lies in its offering of affordable options in thriving regional cities like Bendigo, Geelong and Ballarat connected to Melbourne via robust road and rail networks. Towns like Shepperton, Mildura, Warrnambool, further expand the state a diverse property market landscape.

So let’s sum all of this up. Investing in Victoria’s property rarket should remain a viable prospect despite fluctuations and uncertainties.

And here’s why. While the property market experiences fluctuations like everywhere Victoria’s resilience shines through. Despite occasional downturns, historical data shows a consistent upward trajectory over time proving its robustness. Most forecasts for 2024 indicate modest yet positive growth in property prices. Factors such as increased demand low vacancy rates and government stimulus contribute to this optimistic outlook. Although interest rates may fluctuate the potential for rate cuts in late 2024 could stimulate housing investment and attract more buyers. Now such developments could fuel demand and bolster property values.

Beyond Melbourne, regional Victoria presents promising opportunities for investment. Despite cooling price growth sometimes certain regional areas experience increased interest from investors offering potential for long-term gains. Property investment in Victoria offers the potential for long-term appreciation. Historical data indicates that property values tend to increase over time providing investors with a hedge against inflation and a source of wealth accumulation. Diversifying investment portfolios with real estate assets in Victoria can mitigate risk associated with other locations.

Recognising the cyclical nature of markets, experienced investors understand that downturns are often followed by periods of growth. Investing during a downturn can present opportunities for acquiring properties at favorable prices with the potential for substantial returns when that market rebounds.

Now to address that massive elephant in the room. The tightened tenancy laws and detrimental rental reforms in Victoria encompass various changes aimed at altering the balance and rights and responsibilities between landlords and tenants. Now these reforms include expanded tenants’ rights.

The reforms have expanded the rights of renters granting them increased protection in areas such as lease terms, rent increases and property conditions. Amendments to rental laws include over 130 reforms designed to enhance protections for tenants covering aspects like minimum standards for rental properties, repairs and privacy rights. It’s kind of fair enough.

Landlords have expressed concerns over the reforms, citing potential financial implications with the higher taxes, stricter regulations and decreased flexibility in managing their own rental properties. While there are claims that these reforms may drive some landlords out of the market leading to fewer rental properties available, the overall impact on the rental market remains a subject of debate.

Now these changes aim to address concerns regarding rental affordability, property standards and tenant rights but they also present challenges for landlords in managing their own properties. Now generally what they will do, is drive more and more investors out of the market and as all of you know who watch my channel, mum and dad investors make up the bulk of housing providers across Australia. So it simply leads to fewer available rentals and increased rents.

To conclude, while the property market in Victoria may face short-term challenges and uncertainties its long-term prospects remain promising with a positive growth, outlook potential interest rate cuts, regional investment opportunities and the inherent benefits of property ownership. Investing in Victoria’s property market continues to be a viable option for very savvy investors looking to build wealth over the long term. But I do realise it is challenging to be counter-cyclical and not follow the herd.

As always everybody, I will keep you posted on all things property from around Australia as our year progresses. Don’t forget to please subscribe and like. It really does make a difference. It helps me get all this lovely free content out there, and I will see you all soon.


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