Melbourne North-West suburbs property market
Written on the 1 June 2017 by James CagneyMELBOURNE NORTH WEST TO BACCHUS MARSH (30 to 60km)
(a 3 minute read)In this report I will cover the suburbs north of the M8 and west of the Melbourne Tullamarine Airport: including Keilor, Caroline Springs, Sydenham, Taylors Lakes, Melton, and Kurunjang to Bacchus Marsh.
The Keilor, Caroline Springs, Sydenham, Taylors Lakes suburbs gave investors the opportunity to make good capital growth and yields 10-15 years ago. These suburbs have entered maturity and investors need to leave them to the owner occupiers who are prepared to pay more to live in these areas. Plus you need to be aware of "Property Cyles and the Cycle of Market Emotions" before you buy into Melbourne. Click >>> CYCLES for this vital information for investors.An investment opportunity exists in and around Melton which was at one stage an area where people who could not afford to rent or buy in Melbourne opted to settle. Melton had the poorer image of low cost housing a few years ago. However, this is changing because the Melton highway provides easy access to the Melbourne CBD with 40 to 45 minutes off-peak and an hour during peak drive. For those who commute daily into Melbourne the train ride is only a 45 minute commute to the city. More professional people are moving into Melton and the stigma about living in Melton will be soon forgotten.
That is why developers are very active around South Melton - now building 3 bedroom homes from $300,000 and 4 bedroom homes from $360,000. The rental yields for investors are 4.5% plus. Really good, taking into consideration that the median price of a 4 bedroom home in Caroline Springs is $618,000 and rental yield is 3.8%. Caroline Springs is only 20km and 18 minutes away from Melton. With the new Federal and State government incentives and grants you will see a large number of first home buyers flocking to Melton. Schools and recreation facilities are being built around the area and within two to three years families will be proud to call Melton home.Only 18 minutes' drive west on the M8 is the country town of Bacchus Marsh. The train commute to the CBD of Melbourne it is only an extra 8 minutes ride from Melton. This is a pretty little town with a lot of history dating back to the gold rush of the eighteen hundreds. Property prices in this town are higher than in Melton. The median price of a 3 bedroom home is $368,500 and a 4 bedroom home is $440,000. Despite homes being around $80,000 more expensive than Melton South the rental yields are over 4%. This is due to the scarcity of new homes in Bacchus Marsh because as at the 1st June 2017 there were only 58 houses for sale and only 4 for rent. There are several schools in the town including the prestigious Bacchus Marsh Grammar School which offers classes from prep to year six.
Developers have their sights on Bacchus Marsh including Mirvac who have a good reputation for building lifestyle communities. Mirvac have splashed out $1.6 million on facilities in a park within the development.
The next major centre is Ballarat which is 45 minutes west of Bacchus Marsh on the M8. We will cover this town in a report on Regional Victoria - coming soon!
James Cagney has a good understanding of numerous suburbs in Melbourne that have good potential for investment. James believes that demographic trends, cycles and price are the keys to potential growth of certain suburbs in Melbourne. Investors must seek advice from real estate professionals who know the market. Factors these professionals must know are:
This is not financial advice. You should not act solely on the basis of the material contained in this article for your investment strategies. Changes in government and legislation occur frequently and without prior notice and financial markets are unpredictable.
This information was written and compiled by James Cagney. The opinions expressed herein do not necessarily represent the views and opinions of his associates including
Thank you to the resources of Terry Ryder, Property Observer, The ABS, BIS Shrapnel, Michael Matusik, Property Monitors, Colliers, On the House, Corelogic, RP Data, Residex, SQM, Herron Todd White, NAB Residential Property Survey, Australian Bureau of Statistics, Peter Wargent, Port Phillip Publishing, Economy & Markets, Harry S. Dent and the many others for the material discussed above.
Author: James Cagney