Melbourne is a difficult city to invest in; there are many 'up and coming' areas that are often perceived as opportunities to 'get in early,' and old and established areas where you can get the 'worst house on the best street.'
The thing is, ideal opportunities don't choose to appear at the most opportune moments. Cities like Melbourne, with diverse areas and demographics, created through a combination of historical anomalies, social constructs and effective urban planning, create a complex puzzle to solve from an investment standpoint. Indeed, Australia offers more than its fair share of these challenges as a result of few cities being intentionally planned, and many areas shirking logic and analyst's best guesses, either experiencing exponential growth or avoiding it altogether.
As a result, when putting together an investment plan for purchasing in Melbourne, it's important that flexibility, maneuverability and speed are seen as crucial elements. Many investors choose to set their mind at ease by getting to know certain areas intimately, understanding average pricing and theoretically avoiding a situation where they can make a poor decision due to a lack of knowledge. However, as previously mentioned this can be incredibly limiting and result in lost opportunities, poor decisions or both. It's important to know to this point that a poor decision may not mean a bad property, but rather not getting the maximum result for the money invested.
A wise move may be to put a focus on trust. Bringing educated people around you, with current knowledge of the market, and upon whom you can genuinely trust to put your best interests first, means you have the combined power of a qualified adviser and enough knowledge to broaden your horizons beyond limited geographies. You can proceed with the confidence that when an ideal opportunity appears, which meets all the criteria outlined in your investment plan, you can respond quickly and without hesitation – meaning you don't miss out when the ideal property, or ideal property in disguise, appears in front of you.
Just as important, is to ensure that your advisers meet the three key criteria of flexibility maneuverability and speed – the last thing you need is to be waiting an extra day for a response from your trusted advisor, only for their caution, or lack of appreciation regarding timeframes, to cost you a good investment.
The bottom line is appreciating that a thorough understanding of the entire Melbourne housing market is unrealistic, and the mere concept is limiting. Through joining forces with people and organizations who are demonstrative of the knowledge you want, and have the pedigree to deserve your trust, you put yourself in an advantageous position. The Melbourne housing market is littered with those who are looking for an ideal investment which fits their limiting and overarching criteria. Flexibility, maneuverability and speed are your crucial allies, and through harnessing the knowledge of others, and leveraging that knowledge into trusted relationships, you have an incredible advantage over others in the investment market.
Jeff Grochowski is the CEO of Accrue Real Estate, which offers buyers a simple and effective pathway to purchasing investment property in Melbourne, including intelligence mechanisms and market-led advice, predicated on years of experience.
They also offer the opportunity to tap into the ‘underground property market – those properties that aren’t passed to agents and don’t appear on mainstream websites.