Nov 21

Melbourne Flemington Suburb Profile

 Melbourne Flemington Suburb Profile


Melbourne has recently been voted the world’s most liveable city for the fourth year in a row, edging out Toronto, Vienna and Vancouver. Melbourne is Australia’s second largest city in terms of population and economic activity. Flemington is just 4km away from the Melbourne CBD and it offers a high level of residential amenity and good rental market.


Why?

  • Strong Yields
    Rental yield of 4.7% for apartments in Flemington and 64% of people rent their home
  • Competitive Entry Prices 
    Median apartment price of $325,000 compared to City of Melbourne’s $505,000
  • Close to the CBD
    Located 4 km from the CBD and next to the Parkville Employment Cluster
  • Residential amenity
    High level of residential amenity with Flemington being a 20 minute suburb
  • White collar workers 
    The number of managers and professionals in Flemington have increased by 19.5% over 10 years
  • Educated People
    The number of residents with tertiary education have increased by 38.9% over 10 years

 

Accessibility and Walkability

  • Flemington is world famous as the home of the Flemington Racecourse and the Melbourne Showgrounds. Home to major events like the Melbourne Cup and the Royal Melbourne Show.
  • It is well connected and supported by public transport – road, rail and tram. Tram No.57 running down Epson Road to Highpoint shopping, Footscray Fresh Food market and the CBD. Newmarket Station is 11 minutes from the CBD by train, and Melbourne Airport is just 16 minutes away via CityLink.
  • Shopping and other entertainment activities are well provided for with the Flemington Road Activity Centre and Coles Village at the showgrounds. Highpoint, Australia’s 3rd largest shopping centre, has 500 retail stores.
  • It sits on the eastern bank of the Maribyrnong River and has access to the historic Melbourne parks like Princes Park and Royal Park
  • It has access to all three Urbis Fundamentals that make a sustainable suburb – Population, Infrastructure and Employment.
  • Residents are close to major employment centres of the CBD and Parkville.

 

Next to Employment Cluster

Flemington is located next to the Parkville Employment Cluster. The Parkville Employment Cluster is one of Australia’s prominent locations for new economy jobs.

Industries represented in the employment cluster include: Powerhouse for education, medical, research and technology.

The two universities (RMIT University and the University of Melbourne) along with the State and Federal governments have already significantly invested in the area with the following projects:

  • University of Melbourne: Victorian Comprehensive Cancer Clinic
  • University of Melbourne: Doherty Institute Building
  • University of Melbourne: Building and Planning Building 
  • RMIT University: Swanston Street Building
  • RMIT University: Design Hub
  • Royal Women’s Hospital
  • Royal Children’s Hospital


Over 32,000 people work in this cluster and is likely to grow due to the large and recent investments made in the area. With this comes the need for accommodation for people who work, study and want to live nearby.

 

Future Insfrastructure

To further support the growth of this cluster there are plans for a new rail tunnel running from the CBD through Parkville. This tunnel, as well as the new metro system generally will increase transport connections and carrying capacity to the area.

 

Area Demographics

Flemington is a fast growing inner city suburb. Over the past 10 years it has grown by 1% per annum, all this while there has been relatively little development of dwellings. Over the next 10 years Flemington’s population is expected to grow on average at 1.4% per annum to 9,200 in 2022. 

The majority of people moving to Flemington are choosing to live in apartments. Furthermore, over 64% of households in Flemington rent their accommodation making for a thick rental market.  In general, it is a home to a group of people with higher levels of education, typically younger and typically in white collar employment.

 

Melbourne property advisors | View latest Flemington apartments

 

Nov 11

8 Biggest Mistakes Made By Property Investors

 

1. Buying older properties (with no tax benefits)

2. Not having the correct financial structures in place

3. Buying at auction

4. Paying off debt (when you should create a redraw facility)

5. Waiting for the deal of a life time

6. Selling to realise a profit (when you should refinance and save tax)

7. Buying based on emotion and on the look of a place

8. Waiting for a downturn in the market

 

Advice on Melbourne property investment | View latest melbourne properties

Nov 10

Melbourne Parkville Suburb Profile

 Melbourne Parkville Suburb Profile

 

 1. Desirable location 

Located 4km from the thriving Melbourne CBD, connected to world-class universities, sporting venues, arts and entertainment. All accessible via tram and train networks that transport you to neighbouring Melbourne, Brunswick and Carlton in minutes. 

Parkville has 15 parks covering nearly 44% of total area, these landscaped parks provide a green corridor to Royal Park which incorporates 170,000ha and provides a new bio-diverse habitat and ample opportunities for recreation.

In a recent survey ranking Melbourne’s most liveable suburbs, Parkville, the green oasis of the inner north ranked 7th out of 314 Melbourne suburbs (The Age Newspaper).

 

2. Accessible Amenities

  • Shopping – Nearby shopping centres include Union Square & Barkly Square. Highpoint, Australia’s 3rd largest shopping centre, has 500 retail stores.
  • Restaurants – Hundreds of quality restaurants within 10 mins
  • University of Melbourne – International rankings of world universities place Melbourne University as number 1 in Australia and number 34 in the world (Times Higher Education World University Rankings 2013-2014)
  • Convenient transport – Trams, Trains, Buses within close by. The local 505 bus operates regularly from early to late transporting students directly to Melbourne university in 8 mins. Melbourne airport is just 15 mins via City Link.

 

 3. Future Insfrastructure

  • Property values are seen to reveal a direct correlation with major infrastructure spending. For example, EastLink suburbs have grown by more than 25% .
  • East West Link –  In May 2014 the Victorian Government announced the $8-10 billion Western Section to link the Eastern Freeway through to the Western Ring Road Plan Melbourne 2050.

 

4. Planned Growth

Parkville has been identified as one of 6 suburbs as a national employment cluster as part of Plan Melbourne 2050.

Industries represented in the employment cluster include; Research and Development, Education and Health Services. Over 32,000 people are currently employed in the cluster with this likely to grow significantly into the future due to the large and recent investments made in the area. 

The two universities (RMIT University and the University of Melbourne) along with the State and Federal governments have already significantly invested in the area with the following projects:

  • Royal Women’s Hospital
  • Royal Children’s Hospital
  • University of Melbourne: Victorian Comprehensive Cancer Clinic
  • University of Melbourne: Doherty Institute Building
  • University of Melbourne: Building and Planning Building 
  • RMIT University: Swanston Street Building
  • RMIT University: Design Hub

 

5. Area Demographics

The population of Parkville in 2006 was 4,981 people. By 2011 the population was 6,182 showing a population growth of 24% in the area during that time. The predominant age group in Parkville is 15-24 years. Households in Parkville are primarily childless couples and are likely to be repaying between $1800 – $2400 per month on their mortgage. In general, people in Parkville work in a Professional occupation. In 2006, 37.0% of the homes in Parkville were owner-occupied compared with 39.1% in 2011. Currently the median sales price of houses in the area is $1,348,000.

 

“Parkville is one of the city’s blue ribbon suburbs and given the proximity to the CBD it will remain a good, but hard to buy into suburb”. Robert Larocca, Real Estate Institute of Victoria.


Melbourne investment property | View latest parkville apartments

Oct 29

The benefits of investing in property

 

Number 1: You have capital growth 

Number 2: You have tax advantages

You can reduce your tax to legally zero. 

Number 3: You have the depreciation

Which is another form of tax advantages.

Number 4: You have income coming in every month

 

Our strategy is to invest in high capital growth property with low holding cost from as little as $13 a week. Over time the property generates you an income.

Capital growth property is very important, with the increase equity, this can help you to invest in your next property sooner.

 

So you have money coming in, Government is giving you all these bonuses and on top of that the bank will lend you money for property. 

Imagine going to your bank manager, and you say to your bank I believe gold, antiques and paintings are good investment, can you please lend me the money so i may invest in these things.

What do you think your bank manager will say to you?

He will laugh at you. However the bank will lend you money for property, but they won’t lend you money for antiques or paintings, simply they are too risky. 

Firstly, the bank will lend you the majority of money, every dollar you put in the bank lends you nine dollars. This is call leverage. Secondly, real estate is the safest investment. If it wasn’t safe the bank won’t lend you money.

 

Melbourne real estate advice | View apartments for sale

Apr 27

Questions & Answers on Real Estate Investment

 

Risk # 1: What if i can’t find a tenant?

Look at the facts…

The vacancy rate in Melbourne is about 3%, meaning out of 100 properties, only 3 are vacant, 97 are rented out. 3% vacancy rate is an equilibrium market. 

 

The solution:

  • Select location with high rental demand and shortage of rental properties.
  • Reduce the rent by $5-$10 to attract tenants to choose your property over others.

 

Risk # 2: What if i have bad tenants?

And what if the tenants don’t pay rent or damage my property? 

Get landlord insurance protection.
Buy in good location, this minimises the risk of bad tenants.
And also the property manager would screen the applicants first before they accepted the tenants.

 

For property damage (fire, rain, etc) get building insurance.

  

Risk #3:  What if i lose my job?

If you lost your job, you will find another job. Make sure you have a financial buffer, say $10,000-$15,000, this will covers you in rainy days. 

 

The solution:

  • Obtain comprehensive insurance;  income protection insurance.

 

Risk #4: What if the interest rates rise?

Investing in property is a long term strategy, you should hold on to the property for at least 10 years to have the biggest rewards. 

During this 10 years interest rate goes up and down. When interest rate rise, this doesn’t effect the investor as much as an owner occupier. As an investor you get more tax back to cover the interest.

 

The solution:

  • Choose an interest rate only loan for lower repayment.
  • You may consider to fix the interest rate, so you know the repayment over the next couple of years. 

 

Risk #5: What if the Market Collapses

Understand property cycles, historically well selected residential property double every 10 years. During this 10 years cycle, it goes up, it stabilise, it may go down a bit, then it goes up.
Residential property has only corrected itself.

The key is to BUY, HOLD AND NEVER SELL… Investment is a long term strategy.

 

RIsk #6: The risk of retiring broke

Only about 7% of Australians own residential investment property, most people don’t invest because they fear of debt or they procrastinate. 

The biggest fear of all is retiring broke. The statistics shown that out of a one hundred Australian, after working for 40 years, 95% end up broke and 5% are financially free. So when you reach retirement age, will you be financially free or end up on the pension?

The biggest risk of all is not doing anything.

To minimise risk is to have the correct knowledge and the right information from successful investor who have actually done it.

 

Apr 24

The 7 Golden Rules to Your Investment Success

 

Golden rule #1: Money that you invest must be absolutely safe

Residential property in Australia held over the long term is one of the safest investment.

Bank lend up to 90% on residential property because they know that property is very safe for them to lend money.

 

Golden rule #2: Invest in assets that appreciate in value

Residential property in Australia is one of the only investments where consistent capital growth is generated over time. Over a 10 years period, historically property prices have risen from 5%-10% per annum.

For example … what was your home worth 8 years ago compared to its current value?

 

Golden rule #3: Insured your assets

Get adequate property insurance; including landlord protection and building insurance.

Also have sufficient personal protection insurances.

  

Golden rule #4: Use Leverage to achieve highest possible returns on investment

Property always outperforms all other investment classes, because of leverage.

For each dollar you invest, the bank lends you nine dollars. Hence the return on your money is ten dollars. Using leverage provides you with greater return on the money that you actually invest. Invest in the minimum amount as possible to maximise the returns on your money.

  

Golden rule #5: Maximise tax advantages

Residential property has the most attractive tax advantages compared to any other investment. With negative gearing benefits, you can claim on building and fixtures and fittings, borrowing costs and other costs associated with the investment property including property management fees and insurances.

The combined tax benefits and rental income on a residential investment property can offset all holding costs, and may even provide a positive cash flow. Eliminating all your property expenses.

 

Golden rule #6: Invest your money in income producing assets

Residential property on average gives a rental return of 4.5-5% per annum and outperform inflation on average of 2.5%.

 

Golden rule #7: Proven investment system 

You must have a proven investment system and that implements all the investment golden rules, requiring minimal involvement.

Following the investment system will avoid headache and potential risks, plus will maximise the upside rewards.

 

View Carlton apartments | View parkville apartments

Mar 08

Helpful Property Investment Tips

 

  • Invest in a brand new property to save maximum tax.
  • Depend on your situation, buy off the plan to save maximum stamp duty.
  • Buy in an area with low vacancy rate, easier to rent out.
  • Invest in property where the holding cost is low, in most scenario between $10-$50 a week.
  • Don’t buy a property that is very expensive, as the rent won’t cover the interest repayment.
  • Have the correct insurance in place; landlord protection and building insurance.
  • Buy in an area with good potential for capital growth, for example location with big infrastructure development, high population growth suburb, or a recognised developing area.
  • Don’t manage the property yourself, appoint an experienced property manager.
  • Get a depreciation schedule for your property, to claim tax deductions.
  • Seek advice from professional people, deal with those that are successful property investors.
  • Refinance your property to continue to build your portfolio.
  • Don’t follow the majority, follow the minority.
  • Have the right finance structure in place that enable you to build a property portfolio.
  • Have a long term mindset, and hold on to your property for as long as you can.
    The longer you hold onto it, the more wealth you build and the more income you’re going to get.
  • Stay away from negative people as they will steal your dreams.
  • Avoid the opinions of friends or other people, unless they are successful investors.
  • Depend on your situation, you can claim around $4,000-$7,000 on tax on a brand new property.
  • Diversify your portfolio with apartments, townhouses and houses, as each has its own advantages.
  • Investing in property is a good debt, as it goes up in value and can also give you an income, accumulate good debt and avoid bad debt.
  • Repeat your success to accumulate at least 4 investment properties over a period of time. 1, 2 or 3 properties are not going to be enough to give you the lifestyle that you want.

 

View new Melbourne townhouses for sale

Feb 13

Pros And Cons of Buying Off The Plan Property in Melbourne

 

Buying off the plan for example an apartment can be risky if you don’t know what you’re doing, especially for first time or non experienced investor. There are some risks involve when buying off the plan, for example:

 

  • The quality of the finished product can be a lower quality
  • Or the project may take longer to complete than expected
  • What happen to your 10% deposit?
  • And there are some other factors to consider too

 

You have to look at your goals, and your financial situation to see if whether off the plan is suitable for you or an established property. If off the plan is a suitable strategy for you, buying off the plan can have massive advantages.

 

How does off the plan work?

 

When you buy off the plan property for example an apartment. You sign the contract of sale and you pay the 10% deposit of the contract price, you pay nothing until settlement. Depend on the project you buy, it could take 6 months, 1 year, 1.5 years or 2 years to build. Make sure you check your finance first to see if you are qualify before you buy any property, and make sure the completion time frame is suitable for your investment purpose.

 

The benefits of buying off the plan 

 

  • Investors buy at today price and the property may increase in 1.5 – 2 years later, like any properties it depend on market condition.
  • Allow you to get your foot in the door with minimal cost.
  • You can save massive stamp duty. For example a $400,000 property. Buying off the plan the stamp duty is around $2,000-$3,000, an established property costs you around $20,000 stamp duty. 
  • Brand new properties have 7 years building warranty as compare to something old.
  • You can claim maximum depreciation on a new property, allowing you to claim maximum tax for your investment.

 

Is your 10% initial holding deposit safe?

 

There are two common ways for you to pay the 10% deposit for the purchase of a property. 

The first way, is by bank guarantee. You go to your bank and you tell your bank you want to get a bank guarantee for the purchase of the property. You give the bank 10% deposit, the bank put this money in a term deposit in your name, and the bank issues you a bank guarantee, you provide the bank guarantee to the vendor. You earn interest in you term deposit, and the money is release at settlement.

The second way, is by bank cheque, the bank cheque is made payable to the vendor solicitor and not the vendor. The vendor doesn’t have access to your money. The money is release to the vendor at settlement. Hence your money is safe.

 

Is buying off the plan safe?

 

Everything we do in life there is an element of risk, like driving a car. We can minimise the risks if we buy only from reputable developer.

Reputable developer delivers quality product, complete project in a timely manner, and they want to leave a good name and reputation, they are here for the long term. 

 

In recent years apartment projects have been very popular, well perceived by owner occupiers and property investors especially within 10km radius of the Melbourne CBD. And the trend of the future is apartment living due to the following reasons:

 

  • Government support developments close to CBD.
  • Apartments are more affordable than houses.
  • People want to be close to Melbourne CBD, employment, public transport, hospitals and all amenities and facilities.

 

If you are planning to invest in an apartment, select a great location with potential for capital growth and high yield. Only buy good project from reputable developer. 

If you need some advice as to what is best for you, feel free to contact us, we are here to help you.

 

View off the plan apartments in Melbourne

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