Why Invest in Property in Melbourne?
Along with cash, bonds and shares, property is one of the most common types of investments. But why should you consider buying an investment property in Melbourne? Earmarked for substantial population growth over the next 15 years, there will be an unprecedented demand for housing in Melbourne. Here are a few good reasons to consider investing in property in one of the world’s most liveable cities:
Melbourne is set for growth
The Victorian Government has put a plan in place to grow Melbourne’s population by an extra 1 million people by 2030, boosting the city’s population to 5 million. According to the metropolitan strategy Melbourne 2030 – Planning for sustainable growth, there will be a need “to increase the supply of well-located affordable housing” to accommodate the population growth. The plan indicates that Melbourne will become a more compact city, with a need for a substantial amount of new housing in or close to activity centres, infrastructure and transport. As such, the demand for rentals across a range of property types will rise and the plan encourages increased apartment-style living in Melbourne and on the city’s fringes.
There is a demand for living space in Melbourne
Currently, there is an under supply of dwellings which exceeds 20,000. This is expected to surpass more than 100,000 in the year 2030. The increased demand for somewhere to live versus the drastic shortage of accommodation means that average property and rental prices are predicted to increase. Whether you decide to rent your property to tenants to earn an income or sell your property in the future for a profit, Melbourne offers a sound property investment opportunity.
Melbourne is one of the most liveable cities in the world
Melbourne has been ranked as the world’s most liveable city in ratings published by The Economist Intelligence Unit in 2011, 2012 and 2013. Victoria’s capital city achieved perfect scores for health care, education and infrastructure. These factors make Melbourne an attractive option for both people who want to live in the city and for investors who can supply accommodation to residents.