Editorial
The Movement
The new investor playbook: owner-occupier homes with investor yields
Ten townhouses at Bayside, Frankston, from $885,000 and 400 metres from the beach, with gross yields of 4.13% to 4.47%. Invest today, sell to an owner-occupier tomorrow.
New build prices are rising whilst the second hand market falls.
In the last 5 months (aprox) house-and-land package prices accross Melbourne have gone up 1.4%, whilst Melbourne dwelling values have fallen 2.8%.
New builds undercut established houses in three Melbourne suburbs
Matching live house-and-land asking prices against the established house median in the same suburb gives a median gap of -$64,250 across 19 Victorian suburbs. In three of them, Sunbury, Truganina and Werribee, the new package is actually the cheaper of the two.
Yields on South East house and land are outperforming the West by 11.2%
Average yield on a 3 bedroom H&L package in the south east is 4.1% vs 3.7% in the west, that is 11.2% higher return. And the median package price in the south east is $118k more expensive.
Are 3 bedroom properties better value than 4 beds? The data suggests so.
Across 20 Melbourne suburbs 4 bedroom H&L packages average 14.0% above the resale medians in the same suburb. Where 3 bedrooms the gap is only 4.7%.