Why People from Other State Buy Properties in other Areas|Property Investment in Melbourne Australia

September 14th, 2020

Why people from interstate buy in different areas. So a lot of people from Sydney buy in Melbourne and maybe in Queensland and also in Queensland, I should say, why would they leave Sydney and buy-in Melbourne? So a lot of factors are involved most of the time Sydney is because it’s very, very expensive already.

So a lot of people can’t afford to buy in there, or they don’t want to spend that much money and lock themselves in one property over there. So they want to look for more options. They want to look for different areas. So Melbourne, sometimes it’s a very good choice for them because for around 500,000 they can buy a very good house, a four-bedroom house in the outer suburbs of Melbourne, which works well for many, many of those kinds of clients.

So they might be looking for investment and some of them do migrate here just because they want to buy a house here because they might be self-employed. They can change their jobs or get a transfer from a job and then just move here and get into their own house. So affordability is one of the big reasons why people from Sydney come here in Melbourne or go to Queensland.

The other thing is also if you just need to navigate this. So the other major thing is also the yield. You might be buying a property, which is from 900,000 to 1 million in Sydney, but the rentals, they haven’t grown that much. The yield that you can get from those kinds of properties, they might be very good for capital growth, but the yield or the rental yield is not there.

So people, sometimes they would want to, but they would prefer something with a higher rental yield so that the mortgage is being covered as much as possible. And it’s not like financial stress on them. Every month that’s one of the big factors as well. Other things are like people might have relatives here or they might have friends there who would have talked good about the property market in Melbourne.

So they want to come here and at least they know that they have someone who’s giving them some information. You’re going to see how it all works in terms of the property market. So that’s one of the two big reasons, the affordability and the rental yields that people want. To buy Melbourne rather than Sydney.

And also is the fact that some home buyers also can’t afford to buy a big house there, or they can only afford an apartment in Sydney, but they have the same kind of price. They might be able to buy a good house and land package or a new house in Melbourne. So that’s they would like to buy in Melbourne and so it really depends on what they’re thinking and what sort.

Guidance, they are getting. I always recommend people don’t keep waiting 10 years to buy a house in an area where you want to live, or if you can’t afford it, just invest somewhere. It could be an outage, like some areas of Sydney that are more affordable or somewhere in Melbourne properties are very stable.

Generally, it will go up in value with a long term period, and then you make your money from that. So small market trends go up and down, but overall long term you should win with the property. So that’s one of the reasons my guidance to people is always to buy something at a lower price and maybe a 455 – 500.

And depending on what area you want to choose, buy something, let it build equity for you. At least it prepares you for a property. Property that you can buy in your area, then not buying anything. And you wait 10 years 15 years nothing happens. You can’t save that much money.

People struggle to save money. That’s always going to be there. Even people with, we see people with a tremendous amount of income. They have 200,000, 250,000, and coming up in a year, combined income or single income of 200,000, 250,000 still. They find it very hard to save money.

Because we spend more, if you only move, you’ll spend more that’s, that’s always there. And some people have other things going on. So if you tie up  the money in a property, which is less affordable for you, or easily affordable for you and lock it in and let it grow in equity, then that property is saving you money.

That’s actually that property is helping you save like building equity into your portfolio. And actually, it’s also a saving. Which most people like, you are talking 30,000 to 50,000 equity that gets built over every year, over a period of time. So that equity is adding to you rather than the doubt you are having to do anything.

You set up a system, you buy a property, you put tenants in, you get the loan, and then there you go. And then that property helps you start a community. Equity or cash for you for future purchases or because once you have the property for 5 years, 7 years, 10 years, you can refinance that property and get the money out to buy some other big house or another investment property.

And also you can sell that property and get some lower, like divide that money into 2 or 3 properties depending on what the scenario is. That’s pretty much it in this video we’ll see you in the next one. I hope I can give you more information and make it easier for you to decide on your property purchase. More than happy to help you out. Give me a (call on 0433 213 993 )

and we can discuss your situation in detail. All right I’m going to see you next time and we’ll take it from there.

Take care. See you..