African gang violence has been in the media spotlight recently.
We’re seeing headlines after headlines of ‘thuggish’ behaviours and African groups committing ‘gang-related’ crimes in Melbourne.
Because more than one incident has occurred in Melbourne’s West (specifically, Wyndham region), people are now associating suburbs in this region – including Tarneit and Werribee – as unsafe compared to others. Some have even become too nervous to invest in property in this area, despite research showing that it is still a sensible investment to consider.
There is no denying that these crimes have occurred. However, it’s important for property investors to look at the facts, judge whether it backs up the stories we’re told by the media and base their investment decision on research.
Fact 1: Crime rates in the West are comparatively lower
Contrary to the media blow up, studies and statistical reports show that the crime rate in the Wyndham region is actually lower than that of the more affluent area, Yarra.
In fact, crime rates have actually fallen by 6% in Victoria in the past year.
A closer look at the facts shows that there were 13,661 reported crimes per 100,000 residents in the Yarra region. That’s almost 60% more compared to Wyndham’s 5,493.5, per 100,000 residents.
Illustration: Yarra Local Government Area – 2018 Crime Snapshot
(Retrieved from Crime Statistics Agency)
This is just one of the many examples that demonstrate that outer suburban regions typically have lower crime rates than inner urban areas.
Fact 2: Media is shown to be inaccurate
There are a number of reasons that investors should not buy into this media. It is misleading as selling papers by focusing on a topic of interest.
We have seen this with the Daily Mail sensationalizing the characteristics of crime committed by African groups in the image extract from ABC media watch below.
Fact 3: Sudanese-born people are over-represented in crime stats
Not only does the media sensationalize African crime, it misrepresents our Sudanese residents implanting a negative emotion towards this group.
There is a very small percentage of Sudan-born offenders.
In fact, if we look at the Victorian Crime Statistics for 2017, this group has only been involved in 2-5% of offences and come in fifth in the ranking of alleged offenders in Victoria by country of birth.
Illustration: Alleged offenders in Victoria by country of birth
When considering an area for property investment, it is important to weigh the emotion with logic, research and rationale.
The Eda Approach to Investing
Here at Eda, we use a strong research methodology that has successfully outperformed the market in terms of capital growth for Victoria residential property over the last 4 years.
Our structured advice is carefully delivered based on numerical facts and professional knowledge.
We have meticulously developed a process that is uniquely measurable and unbiased, specifically focusing on factors such as:
- Mortgage risk
- Vacancy rates
- Volatility in price growth
- Family income growth
- Infrastructure spending (current & planned)
- Competition and scarcity
And with this approach, we are confident in saying that a property in Wyndham should not be removed as an investment consideration just because of one or two crime incidents.
Overall, Wyndham is a strong community with the lower crime rate in the region and a functional local government unit. It remains to be a place with significantly higher population and infrastructure developments that contribute to its attractive and well-performing investment market.
We are here to answer all your concerns so please feel free to send us your inquiries through to email@example.com. Alternatively, you can call us on 1300 424 970 to organise a time to chat.