As a property investor in Melbourne facing headlines about collapsed builders, struggling mortgagees, rising prices and untenable housing conditions – it is hard to ignore the news. And yet, we are told, this is exactly when we should invest.
Indeed, despite tabloid stories, there are many reasons why you should consider investing in residential property, in Victoria, right now.
Victoria is experiencing high population growth, particularly due to international migration. It is one of the fastest-growing states in Australia, with a projected population of 11.2 million by 2056. With a growth rate of 2.1% in 2022 and a significant influx of international migrants, the demand for property is expected to remain strong, potentially putting upward pressure on prices.
Employment Growth
Victoria boasts the lowest unemployment rate among all Australian states, standing at just 3.1%. The creation of nearly 330,000 jobs since September 2020 has surpassed government targets and outperformed other states. Strong employment prospects tend to have a positive impact on property prices.
Economic Stability
Melbourne is known for its stable economy, supported by diverse industries such as finance, education, healthcare, and technology. This economic stability enhances the resilience of the property market, making it an attractive investment option.
Limited Housing Supply
The city continues to experience a shortage of housing supply, particularly in highly sought-after areas. This scarcity of available properties can lead to potential price appreciation over time, increasing the potential returns on investment.
Lifestyle and Liveability
Melbourne consistently ranks highly in terms of livability, offering a vibrant cultural scene, excellent education and healthcare facilities, and a robust job market. These factors contribute to the city’s attractiveness as a place to live, attracting tenants and supporting property investment.
While these factors suggest potential opportunities for investment, right now, it’s important to conduct thorough research, evaluate your financial goals, and consider your risk tolerance before making any investment decisions. Seeking advice from property investment professionals, can provide valuable insights tailored to your specific circumstances.
