As Victoria ease out of lockdown with extreme caution, the outlook and sentiment is somewhat confused and contradictory. Whilst house prices in Melbourne have softened by average of around 5% in the last quarter, many affordable pockets around greater Melbourne have surged in demand and pricing, due to its relative affordability.
Despite the softening house prices in Melbourne, prices are still roughly 5% higher this time last year. With the pandemic in full-swing and lockdown now affecting nearly every single person in the economy, it makes perfect sense that affordability is the criterion for many when it comes to property. All of a sudden, it is acceptable to compromise on location, specification or a little bit of both, to balance out the affordability aspect of the transaction.
The prime opportunity has come now for those who live in the more affordable pockets of Greater Melbourne, and also those who are stepping outside their comfort zone to look for a diamond in the rough. These hotspot suburbs (in terms of price, not COVID) create renewed opportunity amidst the current dwindling economic outlook. With HomeBuilder still on the horizon for a few months yet and interest rates still at an all-time low, the timing couldn’t be better to capitalise on a diamond in the rough for long term investment with government’s assistance.
Do you currently own a hidden gem in an affordable pocket in Greater Melbourne? Or are you searching for a diamond in the rough? The renovation component of the buy or sell is crucial. Maximise the value of your hidden gem by renovating before going onto the market, and optimise your return on investment by polishing up that diamond in the rough for long term gain.