9 Reasons to invest in new apartments Melbourne by July
With the recent Budget announcement and changes to the rules and regulations for property investment, investing in new apartments Melbourne before July 2017 makes an excellent investment decision.
If you’re looking to build your wealth, save tax and have some financial security behind you, then investing in new apartments Melbourne is a smart move.
With only seven weeks until the end of the financial year and the introduction of some huge changes, here’s nine reasons why you need to be investing in Melbourne today.
9 reasons to invest in new apartments Melbourne before July
1. Stamp Duty Changes
New stamp duty laws will be coming into effect from 1 July 2017 which will benefit first home buyers, but not investors. This means that from 1 July 2017, all investors buying VIC property will be liable to pay full stamp duty on new property. This works out to be an extra $15,000 to $20,000 more than what you are currently paying. Do you really want to be paying the full stamp duty?
2. Melbourne continues to be more affordable than Sydney
The median property price in Melbourne is still far less than Sydney, making this city a much more affordable option for investors struggling to afford Sydney property. According to CoreLogic, the median dwelling price in Melbourne at 30 April 2017 was $650,000, compared to Sydney’s $860,000.
3. Strong economy
The economy in Melbourne continues to be one of Australia’s strongest and has a growing professional services sector, especially around Docklands and Southbank. According to the SGS Economics and Planning, Melbourne is one of Australia’s leading economies with an annual growth rate of 3.1 per cent, outperforming both Sydney and Perth. If you are looking to invest in property, then you really want to be investing in a city whose economy continuously performs well.
4. Fastest population growth
Another reason why you should be investing in new apartments Melbourne before July is down to population growth. Melbourne continues to have a very strong population growth rate and is expected to be the largest Australian city by 2056, surpassing Sydney from the number one spot. Australian Bureau of Statistics (ABS) data reveals that Melbourne is the fastest growing capital city in Australia with a gain of 91,600 people between 2014-15. This works out at an average of 1,760 people per week.
It is predicted that Victoria’s population will reach 10 million by the 2050s, whilst Melbourne’s population is set to double by 2031 putting additional pressure on the housing market for greater property demand. Another 2 million homes are thought to be required to house this population, which is good news for investors and home buyers looking to invest in new apartments Melbourne.
5. Low interest rates
The interest rates have been left unchanged for May 2017 at 1.50 per cent, an historic low. This is making property purchases much more attractive right now, although interest rates are likely to gradually increase over the next few years. Securing a fixed interest rate on your mortgage now before rates rise would make a smart move for any property investor looking to invest in new apartments Melbourne before July.
6. Strong auction clearance rates
Melbourne is still experiencing strong auction clearance rates with a high demand for property from both investors and owner occupiers. The clearance rate for week ending Sunday 07 May 2017 stood at 78% compared to 72% this time last year.
7. Strong infrastructure spend
With the economy in Victoria remaining strong, the state will also benefit with millions of dollars invested into its infrastructure including its transport system to improve connectivity. More than $879.5 million will be invested into a more frequent and reliable metropolitan public transport system whilst $700 million over four years will be used to improve road infrastructure including the M80 Ring Road upgrades. A reliable and frequent transport network will allow further growth outside the capital city and allow new developments to proceed.
8. Low urban density
Unlike Sydney, Melbourne has plenty of land to build on, reaching over 90km north to south and 100km east to west. With a growing population, it’s essential that VIC continues to meet the housing demand. Some of the key developments underway include Fisherman’s Bend, expected to be complete by 2050 and is Melbourne’s largest urban renewal projects to house around 80,000 residents.
9. Melbourne ranked most liveable city in the world 6 years running
According to the Economist Intelligence Unit’s Liveability Survey, Melbourne has ranked the as the world’s most liveable city for six years running. With a strong economy, excellent schools, good public transport system, expansive green spaces and lifestyle amenities, it’s easy to understand why Melbourne is such an attractive city for investors to buy property in. With some stunning new developments with exceptional 5-stat hotel-style facilities now being created, the range of new apartments Melbourne has really taken a step up from the rest.
If you are seriously thinking about investing in new apartments Melbourne and want to save some cash then it’s crucial that you take action today to avoid paying an additional $20,000 in stamp duty, which let’s face it could be used elsewhere.
Find out more today about what new apartments Melbourne are currently available for sale and which properties best suit your requirements by getting in touch with the iBuyNew team today. Call us on 1300 123 463 and speak to one of our friendly Property Consultants to discover more.
Published on 15th of May 2017 by Marty Stanowich