If I were talking to you about property investment just 3 or 4 years ago I would have told you that the best properties to buy are located within 15km’s of a major CBD in a major Capital City. The right property (that is key!) in those areas will definitely still perform and this tried and tested method still rings true.
Along with those areas though, Melbourne is changing its face, mostly through the Government initiatives and infrastructure projects that are pouring money into key areas around Melbourne. (See the Melbourne 2030 Plan for more info here http://www.melbourne2030.vic.gov.au/). The Victorian Government has identified that if our population keeps growing as it has been, new infrastructure will need to be constructed to cope with the increased populace.
Continuing to build further and further out from the CBD (we are already 55km’s in the East and approx. 35km’s in the West) does not suit the lifestyle of the ‘new’ Melbournian and increases traffic congestion. The initiative has been to identify key areas that can cope with population growth and already have good infrastructure in place, including roads, public transport links and established shopping and lifestyle centers.
There are a few different ratings for these areas, the ones of most interest are either Principle Activity Centres, or Major Activity Centres and although most of them are based within 15km’s of the CBD there are a few that stand out, which are based slightly further out. One Major Activity Centre of interest to Nyko Property, is Epping, 22km’s from the CBD.
Epping is going through a major redevelopment, infrastructure works around Cooper Street are ongoing and the relocation of the Victorian Fruit, Vegetable and Flower Markets is not to be underestimated. With a median price still in the $300’s, this suburb definitely has room to move.
There are other examples of such suburbs in Melbourne, where it is still possible to buy large 2 bedroom apartments with yields of over 5% per annum in the low to mid $300’s! You will notice that Nyko Property will be concentrating on some of these suburbs over the coming 12 months, along with a good mix of the blue chip suburbs, so keep an eye out.
Any questions or comments, add them below and I will endeavor to answer asap.