Successfully investing in the property market requires finding the right balance between housing affordability and future growth potential. Many budding property investors are often at either end of a spectrum.
On one end, property investment in the CBD is seen as the key to a burgeoning portfolio, investors having to fork out the big bucks to achieve this. On the other end, investors with fewer resources available to them think that purchasing property ‘out in woop woop’ is their only affordable option.
Recent studies are showing that in Melbourne particularly, property investment is set to grow further north of the CBD with Heidelberg Heights, Sunshine West and Fawkner named the top three most affordable investment areas in the city.
Why these areas?
Traditionally these suburbs were considered lowbrow, occupied by a majorly blue collar population. Digging deeper than this superficial glance, it was found that a huge amount of infrastructure development is in the works, which lays the foundation for commercial and residential growth into the future.
The outdated reputation of these areas is quickly disappearing, with $32.9 million worth of new development projects due for Heidelberg Heights and $30.5 million injected into local development for Sunshine West. What’s more, these investment hotspots reside between 14 and 17 kilometers of the Melbourne CBD.
What’s driving investors?
Firstly, property investors began seriously looking at Heidelberg Heights due to the existing amount of infrastructure in the area, which includes public transport, hospitals and a range of public and private schools. Sunshine West is seeing a flow on effect due to the popularity of neighboring areas as well as the short walking distances to amenities in area. More prominently, investors are flocking to the area because of the 1950’s style homes which are a renovator’s gold mine. With Fawkner, investment in the area is being propelled by their large blocks, which are almost nonexistent in neighboring areas.
Time and time again we come to draw the same conclusions from looking at prospering property markets across the country. Property investment requires calculated planning and action. To achieve the goals you set out to accomplish via investing in the property market in the first place, investors must find that balance between capital requirements at the future return that an investment property will generate.
Want to live the life you really want? The team at Infinite Wealth can provide the education, direction and on-going support you need to reach your financial goals. Get in touch with us today on 08 9438 6333 or click here to contact us.
The information provided is of a general nature and is not intended to be constituted as financial advice. We recommend that you seek independent advice from qualified professionals before employing any strategies outlined.