The Best Melbourne Suburbs To Buy In 2025

Summary

Highlights

• Interest rate drops are reviving Melbourne's higher-end real estate market. 📊
• Suburbs such as Reservoir, Baronia, and Seaford show promise in the post-recovery phase. 🌟
• There's a sentiment shift among buyers leading to increased market activity. 📈

Key Takeaways

• Melbourne's real estate market is reshuffling due to recent interest rate changes, creating new opportunities in higher price brackets. 📈
• Reservoir, Baronia, and Seaford are emerging as key suburbs for investment, with increased demand and shrinking supply. 🔍
• Interest rate cuts have shifted sentiment, making the market more favorable for owner-occupiers and investors. 📉

Overview

Chapters

• 00:00 - 00:30: Introduction This chapter titled 'Introduction' discusses the recent changes in the property market, particularly focusing on Melbourne. It elaborates on the demand trends in the suburbs and highlights a supply issue influencing investment decisions over $750,000. The text emphasizes a revitalization in the owner-occupier market, marking a shift from the stagnation observed in the last four years. This segment suggests a significant opportunity, devoid of gatekeeping, marking an important phase in the property landscape.
• 00:30 - 01:30: Melbourne Market Overview The chapter provides an overview of the Melbourne property market, particularly targeting investors who have a budget of over $750,000. It follows previous episodes that focused on Melbourne properties under $600,000, offering insights into different suburbs and investment opportunities at a higher price level.
• 01:30 - 02:30: Market Segment 750K and Above The chapter discusses the market segment for properties priced at 750,000 and above in Australia. The speaker believes this price segment is set to be one of the top performers in Australia in the coming years. They are accompanied by Adi, and together they reflect on past discussions about affordability in the lower price brackets, particularly in the 400k to 500k range. The conversation signals a shift in attention towards the higher price segment and anticipates its strong performance.
• 02:30 - 04:30: The Interest Rate Impact This chapter discusses the recent changes in interest rates, particularly affecting properties priced at 750 and above in Melbourne. It highlights the shift from the past few years, particularly noting the significant change in February when interest rates began to decrease. The chapter emphasizes the uncertainty surrounding the extent of future rate cuts and the cash rate levels, indicating a potentially pivotal moment in the real estate market.
• 04:30 - 08:00: The Sentiment Shift The chapter discusses shifts in the real estate market over recent years. Initially, the affordable price segments were experiencing the most significant growth. However, recent data indicates a shift, with Perth, Adelaide, and Brisbane showing slowed growth. Conversely, Sydney and Melbourne, particularly their middle and upper market sectors, are now climbing in the rankings.
• 08:00 - 10:30: Investment Strategy The chapter discusses the recent reshuffling in real estate investment strategies, triggered by changes in interest rates. The spread between property prices in different cities has become similar over the last 90 days, driven by increased affordability. This trend is benefiting more expensive properties, as investor sentiment also plays a significant role. The text mentions the role of buyers' agencies and interactions with mortgage brokers, indicating a surge in activity in the property market.
• 10:30 - 17:30: Reservoir - A Golden Opportunity The chapter titled 'Reservoir - A Golden Opportunity' explores the impact of a minor interest rate cut, specifically a 0.25% reduction, on investor sentiment and market activity. It describes how even a small change in rates can lead to a significant shift in psychology among investors, creating a ripple effect in the market. The narrative illustrates this by recounting how inquiries about investments surged following the announcement, as eager individuals awaited the opportunity to take action, often contacting their brokers immediately. The chapter underscores the powerful influence of market psychology and sentiment changes in response to small economic adjustments, emphasizing their substantial impact on financial decisions and market trends.
• 17:30 - 20:30: The Alpha and Beta Strategy The chapter titled 'The Alpha and Beta Strategy' discusses the speaker's perspective on the evolving investment landscape. Four years ago, the speaker experienced uncertainty and pessimism in the market. Currently, there is a noticeable shift towards optimism, as evidenced by increased communication and a positive outlook shared by investors, including a couple aiming to acquire 10 properties over the next decade. The narrative highlights a change from past market struggles to current and future bullish sentiments.
• 20:30 - 26:30: Baronia - An Attractive Suburb The chapter titled 'Baronia - An Attractive Suburb' explores a sentiment shift in the real estate market. The focus is particularly on properties priced at $750,000 and above, a segment that hasn't been discussed much in recent years. There is a noticeable reshuffling occurring in this market, which has been stagnant or unfavorable for some time. The discussion highlights a growing confidence and renewed interest in this sector, which encompasses the owner-occupier market.
• 26:30 - 30:30: Melbourne Market Dynamics The chapter 'Melbourne Market Dynamics' delves into the varying prevalence of owner occupiers and investors in Melbourne's real estate market based on property prices. It is observed that properties priced over $750k see more owner occupiers, whereas the sub $500,000 bracket is dominated by investors. This trend is common across all capital cities. Currently, activity in the owner-occupier market is expected to increase as it had been sluggish over the past four years. The lower demand during this period has led to value opportunities emerging in areas previously burdened by excessive supply.
• 30:30 - 38:00: Seaford - Coastal Investment The chapter discusses the real estate market in Seaford, highlighting the disparity between listings and demand. As prices have been stagnant or declining over the past three to four years due to rising rates, this presents investment opportunities. The conversation notes that properties in Melbourne above $750,000 attract a large segment of Australian buyers and investors who are drawn to this market for its familiarity and comfort.
• 38:00 - 40:30: Closing Remarks In this concluding chapter titled 'Closing Remarks', the speaker reflects on the positive emotions and the desire to reside in a particular place that often emerges in discussions with clients. The narrative recounts a specific conversation with a client regarding the affordability of living spaces within a certain price range, highlighting the mental adjustments required to align desires with budget limitations.

The Best Melbourne Suburbs To Buy In 2025 Transcription

• 00:00 - 00:30 this reshuffleling has happened inside the last 90 days the only thing I can see is maybe demand is not as prevalent in a lot of the suburbs and that's why you're like "Oh maybe it's not the right time to enter where should I invest if I have more than $750,000 to spend there's a real supply issue that's happening in Melbourne i'm calling this golden nugget the owner occupy market that is there is going to increase in activity and it sucked over the last four years it has this there's no gatekeeping when it comes to stuff like this this is important for the
• 00:30 - 01:00 Australian [Music] population where should I invest if I have more than $750,000 to spend in this episode we're going to continue our Melbourne series and we're going to level it up a little bit more we've done a few episodes recently covering Melbourne under 600,000 some great Melbourne suburbs and now we're going to specifically look at
• 01:00 - 01:30 markets above 750,000 and everyone guess what we're going to run through why I think that this market and this price segment is going to be one of Australia's best performing price segments and markets in the years ahead in this cycle period i've got Adi with me adi how are you champ i'm really good man i'm excited about this actually cuz we've been talking for the last few years just around that affordability price bracket you know like the 500k that it just has been hot topic 400k up until a couple of
• 01:30 - 02:00 years ago so I'm really curious what makes you want to talk specifically about the 750 and up sort of price bracket especially in a place like Melbourne we've been doing a lot of content and a lot of videos about how everything that was the way it's been over the last few years some of that is now changing around the big big change in February was interest rates have now started coming down y now we don't know how much they're going to come down we don't know how much the the cash rates going to be but this is a re-triggering sort of moment we're starting to already
• 02:00 - 02:30 see that in the data i said it a few months ago where the data points of what we know with affordable price segments being the absolute uh runaway winners over the last little cycle over the last three or four years now that is starting to shift around a little bit we've seen that in February already like the data sets come out perth Adelaide Brisbane have all gone from you know near double digit growth levels back to the pack meanwhile Sydney and Melbourne the more expensive markets and in particular the middle and upper ends of both of those markets have climbed up the rankings and
• 02:30 - 03:00 now the spread between cities is very very similar so this reshuffleling has happened inside the last 90 days and what's triggering that reshuffleling is the interest rate story that's that's there it's driving up affordability and as a result more expensive properties are starting to do well and you'd expect to see that as well yeah and I think it's it's so much to do with sentiment as well obviously you know we we have the buyers agency here like% the influx of phone calls and I've I speak to a lot of mortgage brokers as part of part of the um part of the work that I do yep
• 03:00 - 03:30 and just the influx of inquiries so this is a 0.25% drop right the sentiment changed there were people literally waiting there like "Oh I can't wait for this to happen and that's the thing I'm going to use to like call my broker you know I'm going to call Curtis after this thing happens." It's just you know it's it's had an influx so we have seen some of the shift i mean there's a sentiment thing here right absolutely it's absolutely huge right i mean there's such a huge psychology play here tiny rate cut does a huge sentiment oh it's a huge i mean I mean at the end of the day
• 03:30 - 04:00 it's like I don't know i mean for my portfolio it was like a you know few hundred or something it's not a huge amount but it's more about what the future now looks like because four years ago it was like this everything sucks this is you know we we don't know when this is going to end but we were looking at the other side of it where things were just climbing exactly so I'm starting to see that on the ground because I'm just getting more phone calls people are just more bullish i spoke to a wonderful couple this morning and they have the most bullish outlook of what the next 10 years looks like for them oh what's going to happen i just they just you know we want 10 properties
• 04:00 - 04:30 we want this and I'm like oh wow this the level of confidence is is wild right so um definitely starting to see it i love the sentiment shift and I think this topic particularly the 750 and up i love this topic because this is sort of something that's been not talked about as much in the last three or four years and we're starting to see that reshuffleling like you like you like you said this market sucked let's just simplify this market has been crap like you know there's so many people out there and I would say this is the owner occupy market as well right like there's
• 04:30 - 05:00 more prevalence of owner occupiers in the 750k plus market in Melbourne than uh the sub $500,000 market you'd see more investors in that marketplace that's pretty standard that You'd see that across the board in every capital city but the owner occupy market that is there is going to increase in activity and it's sucked over the last four years which also is why it's part of the golden opportunity window now there's value opportunities popping up here because it's had low demand uh markets that had too much supply as well over a
• 05:00 - 05:30 period of time more listings than demand there and price growth has been non-existent yeah if anything negative over a three or four year period since rates began rising but that presents opportunity it does melbourne above 750,000 this is going to be like you know a huge huge segment of Australians are buying in this marketplace and investors all across Australia love this marketplace as well because it makes them feel comfortable it's just like I know these areas it
• 05:30 - 06:00 makes me feel great i would want to live here yes that how do you feel about that do you see that in the conversations that you have be like I would want to live here does that ever framework into the conversations that you have were you in my phone call yesterday with my with my client so I was Yeah yeah i was uh I was in the car i was talking to a client of mine and we were in a more affordable price bracket for this particular client we sort of in that mid 400s range so that comes with a certain level of um you know compromises I guess mental compromises that you need to make in
• 06:00 - 06:30 terms of the type of property that's available to you right it's it's there was a lot of I would never live here why would you yeah yeah why would I want to buy this right i agree with you man like that shift happens so dramatically as soon as like this the price bracket changes to 750 and up i mean it's kind of sad to say but the houses just look nicer and people are just more comfortable like yeah I can see myself living here even though as long-term investors or even if you buy a crappy house like the suburb is like "Yeah I kind of want to live here." We'll get on to the suburbs very soon that are listening to there's three
• 06:30 - 07:00 golden nuggets coming anyway let's go on yeah like you know so that that sentiment shift is huge right so that's I mean as much as we like to think that we are clinical in our approach we are incredibly there's no emotion involved like we are long-term investors both you and I we have a collective 25 years of investing experience but there's a part of us that thinks o this one's a bit this one's a bit rough around the edges I don't know you just gave away my age that's not nice that's not nice man it's not nice uh not 25 years See you shaved
• 07:00 - 07:30 as well so people people will think you're like 15 years old here hey come on this just a 15-year-old buyers Asian i kept my beard on intentionally for this anyone who's watching this you'll get that um I shaved yesterday so I'm paying him out for it yeah I do i look like a I look like a baby and um Herona if you're watching this I'm sorry i didn't ask I did I did ask for permission to do this one you're not here so you know yeah that's that comfort factor is that sentiment story
• 07:30 - 08:00 as well though so if I speak to people in Sydney you know I probably represent a broader range of clientele all across Australia than a lot of the buyers agents at the moment because you start uh finding the marketplace that you work at and Flint our company with a lot of brokers is very large so you get a signal of different parts of Australia and what people are thinking like we have a lot of farmer clients in one of our um branded businesses farmers finance there so we have conversations across the board across Australia and the general story is people feel more comfortable investing where they're not
• 08:00 - 08:30 consuming content they're not getting too educated by it or anything like that they feel a bit more comfortable investing if they're going outside their own marketplace yes so that's barrier number one then barrier number two is to a marketplace that they know and they they feel comfortable with and the third lens that they put in there is could I potentially live there one day they they add that into the criteria of property investing that you'd want and for a lot of Sydney siders above 750K there's some suburbs here that we're about to touch on that yeah that tick that last box as
• 08:30 - 09:00 well and the reason why that matters a little bit is it makes it may be owner occupying markets but with the change in interest rates coming down affordability is going up uh that presents more investment opportunities in these markets as well so let's get into it tell me why i love this that's that's a great segue as well so what's number one number one it's actually I actually really like this personally i know there's no personal sort of emotional attachment i actually really like the suburb i've been there it's a really nice place it's in Northern Melbourne um
• 09:00 - 09:30 near Preston i'm sure a lot of listeners here know about the Preston market it's like this bougie little market is it yeah yeah yeah it's really beautiful so this um this area is called Reservoir reservoir i've seen a few contractive sales here from some savvy investors actually i like this market i I do too man i do too let me let me just share some of these some of these numbers and tell you why there's such a compelling story with reservoir and other others as well so last last couple years we've just discussed this market this segment of the market has not done that well so it's your price point you're sort of
• 09:30 - 10:00 looking at is about you know mid 800s to sort of low 900s you you can pick up a pretty decent property uh rents or yields is probably sitting at the 3.2% which is sort of on the lower end but the most interesting thing is that yields have increased 10% in the last 12 months and this is talking about averages here i find that fascinating right so it's one got one of the fastest rent growth around the country so even though your sort of initial purchase price a yield is maybe a little bit lower than you would like but things are
• 10:00 - 10:30 increasing a lot faster because obviously there's been a bit of a flux of investors leaving the you know the the the Melbourne market you know everyone freaking out about land taxes and you know all this other stuff that's happening um that's but what does that translate to really limited rental stock and a lot of these really nice areas where people want to live you know it takes 20 minutes to get into the city suddenly become quite popular so reservoir is a big one cycle timing you're talking a little bit about that that's right the when we say cycle
• 10:30 - 11:00 timing we often use that word but like what does that actually mean the cycle timing there is investors have left the marketplace because of a whole range of reasons lack of capital growth uh over a number of years land taxes feeling attacked on that means that there's fewer rental dwellings and then that pushes upward pressure on rents and it re-triggers the next cycle so that's the the cycle timing has explainers behind it and that is the explanation behind it you've just touched on it and unpacked it that's exactly right and suddenly it's it's a it's again a sentiment thing
• 11:00 - 11:30 right like oh wow rents are now not as crappy as they were you know so suddenly I want to be here again and then the next you know um sort of um entrance of investors are suddenly interested again because we know like you've seen these uh contracts in place right now right so very interesting one of the I'll make one overarching statement about um Melbourne at the moment right I so obviously in preparation for this podcast I wanted to find really cool suburbs that sort of different parts of uh metro Melbourne I found found it
• 11:30 - 12:00 really hard to found find a single suburb in Melbourne where the supply wasn't like dwindling like off the cliff which was I thought that was really interesting cuz I was trying to find something a few anomalies you know maybe something's got like supply going up the only thing I can see is maybe demand is not as prevalent in a lot of the suburbs and that's why you're like oh maybe it's not the right time to enter you know maybe it's a more of a colder market than a warmer market one thing I couldn't find though was one that had sort of like increasing supply in terms of again I haven't I spent about half an
• 12:00 - 12:30 hour on this so I'm going to take it with a grain of salt but I thought that It's really interesting there's a real supply issue that's happening in Melbourne i'm calling this golden nugget found a golden nugget he's looked through his search he's searched his search and he's found that little shimmer of gold here that gold is translating into price data melbourne I touched on this at the beginning of this episode is it has gone from one of the poorest performing markets only a few months ago to the top of the charts in February with a point4% growth rate what triggered that level of change will be
• 12:30 - 13:00 that interest rate demand increase that's there but at the exact same time as that demand increase we've seen supply levels come off and that is what's triggering that change in the Melbourne price story uh and maybe a whole bunch of episodes that you've done you've had like 25,000 people listen to your last two Melbourne episodes that you might be moving demand yourself i'm pretty sure 24,900 is my mom she she keeps telling me repeat repeat that's my son um that's cute the other
• 13:00 - 13:30 thing I'll mention hi ma um the other thing I'll mention is that vacancy rates again it's being translated into that rental stock sort of segment of the market as well vacancy rates are just falling off a cliff right you can see the you can see the steepness of that of that drop off right so reservoir being the vacancy rate do you have that there uh the vacancy rate for reservoir is sitting at sub 2% at the moment but the trend is what I'm really interested in right it has been dropping very sharply in the last four years which sort of trans sort of sort of puts more credence
• 13:30 - 14:00 to that story that hey probably investors are flocking out of it um because you know they got freaked out what's the bougie part you touched and it's next to Preston right next to Preston so why do you call Preston bougie preston's not Preston itself is not bougie there's a really nice market there i just I remember going on dates with Rona um you hang you hang out in Preston uh sometimes sometimes yeah i have friends there as well shout out cool yeah yeah yeah so it's it's a really nice part of the part of sort of metro Melbourne i'm I'm a fan it's close
• 14:00 - 14:30 to the CBD as well right it's not bad man yeah it's Yeah not far at all yeah so I'm a fan of Reservoir i know we have um a couple others we want to run through can Can I quickly touch on a couple of the deal points here so I if I'm putting my hand up and say if I'm buying in Melbourne this would be on my list right near the top of my list or areas like this that I'm looking for the reason for it so let's go into the deal specifics here as to what I'd be looking for this is an area where uh somewhat halfdecent looking house owner occupy friendly will sell for around 900
• 14:30 - 15:00 950ish but if you search really hard you can find decent block sizes 500 m crappy homes not very nice that start with a seven handle correct now that offers opportunity to value add in a small way and make your money back a little bit so that's what I call a little bit of alpha investing where you're investing in a way where you could buy below the market a little bit and do some little bits of work or planning changes or whatever it is to increase the value of your asset
• 15:00 - 15:30 from day one and then there's the second component which which we've been talking a lot is the beta component which is the market improvement so I talk a lot about in anyone who's watched this podcast for a long period of time you'll know that my investing strategy is centered around the concept of alpha beta where alpha is buying below market or buying something that the market doesn't see and there's opportunities in some a sort of like reservoir to find that at the moment all you have to do is look at sold prices and see hey 950 for a threebedroom by two home or some version of that 4x1 or
• 15:30 - 16:00 something like that for a half decently renovated one and 700 for something that looks ugly be like cool it doesn't cost me $200,000 to renovate it can do a cosmetic one and I'll make you know 100 grand there that's that component and then the second component is the Melbourne market is attractive it's already starting to perform demand is beginning to rise supply is starting to come down uh in terms of new listings there's more activity going in there and the price growth story has just just started and I'm buying in an amazing capital city for 700 like for a pretty
• 16:00 - 16:30 low price point it is it's attractive this this compelling narrative isn't This has got to be like nearly really really high on this list man this happens to me every time i talk to you and I'm like I should invest let's go do it we should go buy some stuff i'm convincing myself i can't believe you gave away all our secrets buy under market value alphabet that's That's all our secrets shut down the agency now what What's the point i love it no I need to start i think I did this on the last podcast uh it's just been released actually um yeah I told a story about
• 16:30 - 17:00 other buyers agencies the big ones that are just trying to shut us down or shut people down that say like reveal secrets like locations and stuff like that yeah we're copying a lot of blowback um I was texting someone in our team this morning being like "Hey I'm copying a lot of heat in a lot of different directions at the moment." And I feel like some of this is just our podcast and what we're actually sharing and saying um but I've never viewed this as intellectual IP i don't think it is so much of that it is just sharing with you what I'd be doing and what we're thinking about and some
• 17:00 - 17:30 of the conversations that we're having so hopefully that helps you uh make better decisions so yeah reservoir will be high on my list let's go to number two i'm excited can I can I just lean into that a little bit just just so I can position us interestingly so I have a teaching background right so I used to tutor like for like six years throughout university it's kind of how I put myself through like you know uni and like you know at the time what did you teach u maths and English i'm I'm I'm Indian i'm not sure i'm glad I'm glad you said that i was like okay I'm an immigrant Indian kid
• 17:30 - 18:00 i'm not teaching anything other than maths and a little bit of science as well so my mom's an English teacher right so education is a really big part of who we are as people so when you sort of invited me on this podcast what attracted me to it is hey we just got to freely share information this there's no gatekeeping when it comes to stuff like this this is important for the Australian population you know 25,000 people watched us last time i love that people are taking decisive action if someone is out there taking what you just said about the alpha beta and
• 18:00 - 18:30 changing their lives man that means the absolute world to me that is a legacy worth leaving you know so to me um I I I don't understand the gatekeeping part um and I think I love the fact that we will never sort of get to that stage so that's me off my high horse so let's go into Baronia baronia i love Baronia i don't know anything about this i'm excited to know are you going to convince me to buy in Baronia after this 5 minutes let's go baronia get in before Red does um Bonia is near sort of Fernry
• 18:30 - 19:00 Gully it's got a beautiful landscape again the data is really really attractive the reason I picked Bonia right you you really like Reservoir right now bonia has a affordable price point about 800K so you can actually probably potentially pick up places start with a six which I think again is phenomenal it's it's capital city like 30 km from the city i think that's amazing so this one's a bit further out on the It's a little bit further out yeah it's a little bit further out maybe you know but it's near Glen Wavely i'm sure people know what Glen Wavely is it's got the really fancy school there
• 19:00 - 19:30 everyone wants to be at that school i'm pretty sure my mom still wants me to go to that school even though even though I'm 35 years old I'm pretty sure but I would never make it there um the yield the yield I mean uh reservoir went up by 10% last year 13% wow did prices how far did prices fall same the price movement was same between Bronia and a couple of percent backwards as context for everyone listening to this I said it we said at the outset these markets have sucked so
• 19:30 - 20:00 when you look at the data of the past few years you're going to see negative performance over last couple of years it's the market cycle timing that offers the opportunity so there's some context as to why uh prices have not really done anything here in the last couple of years and also why we're talking about it with that rate cutting cycle this is the next marketplace that's going to benefit from that and move forward that's exactly right a little bit more about uh Baronia uh um good part of town um it's near sort of I it's near the Danong Ranges like the the sort of like
• 20:00 - 20:30 the national park we used to go there a lot the Thousand Steps it's just it's just it's a beautiful part of the country it's a bit more hilly it's a bit more mountainy um yeah I mean from a from a purely quantitative perspective the data is unbelievable right i mean stock looks like it's someone has pushed it off a cliff i don't I don't know what's going on here there's inventory stock on market all the things that you look at and you're like "Wow." Like there's like no one's selling their houses here it's just it's a very low
• 20:30 - 21:00 listing kind of an area although the population to put it into perspective is like 24,000 you know just just for the suburb itself right and it's surrounded by a lot of people and then you're talking about a stock on market percentage right which is a reflection of how much listings is available there's 12 listings apparently like it's just like it's not a normal sort of uh place to be right then again it's the same vacancy rate saga right it's dropping off a cliff so the intention of this I guess this this this episode is
• 21:00 - 21:30 that there are three suburbs reservoir Bonia and the one that we're about to talk about very sim similar sort of narrative you know you have the data saying the right thing but what I love about it is we're finally talking about a price bracket where we can see ourselves living right let's let's be honest we we can see ourselves living there it sort of ticks that mental checkbox of ah these are not this is not that kind of interesting looking house in regional uh Victoria or New South Wales or Queensland right this is a place that I can actually live i
• 21:30 - 22:00 probably this is a classic i can probably drive past this house on my way home to work you know so it's I I love that narrative and that's what I I'm sort of loving about these particular areas the renter owner uh it is 28% right in that sweet spot do you have uh Baronia as well uh Baronia is 28% so reservoir let me have a look if you've got it still open that would be cool uh reservoir is 36% so it's a little bit higher it's a little bit higher makes sense actually when you look at like
• 22:00 - 22:30 when you look at reservoir on real estate demand and I I've done a little bit of research when our client bought there i was like let me take a look by here doing my creepy stalking it's really really weird all my stalking is of people's properties but hopefully not their PPIs it's just that what they're buying in terms No I do that too i do that too i'm not going to lie like what a nice house at their PPI you're just checking it online yeah yeah just just checking it out it's a fun thing it's kind of like going to the shops and just seeing
• 22:30 - 23:00 something and just like it's window shopping yeah yeah it's my version of window shopping i don't window shop i don't digital shop very much but I do look at people's properties and all the contract sales and being like I wonder why someone's buying here spend a little bit of time there so uh for the audience here this is about providing you a few different options if you're looking at these marketplaces these are things to consider as a starting point for your research it's obviously a big question that you go through when you're actually thinking about investing or even buying you're like "What about this side what what does it look like?" It's a question I get asked all the time i can't go to a wedding or a freaking social event now
• 23:00 - 23:30 without being like "Are should I buy where should I buy?" Like like "Hang on let me look at my podcast that that that's kind of my my my life now." So uh you're the guy what it does give me is funny this is what you want to know like this is what you want to look at so we're not necessarily saying go buy in these suburbs but it's just like here's your starting point like take a look spend some time uh beginning your research here correct you need you might need a bit of a road map as to what to do and we're unpacking some of the reasons why these markets
• 23:30 - 24:00 are going to do exactly and I think I think this is again me talking about the overarching Melbourne story right these are three suburbs didn't take me too long to find we know at a macro level you've talked about this in your frameworks etc melbourne is changing and it's evolving from its fouryear u sort of you know cycle that it's just gone through everyone hated it everyone was you know the fanboying you know the Perth and the Queenslands of the world suddenly there's less are you seeing just as many contracts in Perth now like what's your No yeah it's all cycles guys
• 24:00 - 24:30 it is literally all cycles we all have very short memories we don't tend to remember you know 5 years from now one's going to be talking about Perth and how amazing it was yeah goes through its period it's a different story right in in about a year's time it it's already happening to be honest but the Melbourne narrative is playing out and this is just purely examples like you said to start your research from if you want to do this by yourself great start here right these are some great um options to start with for sure yeah now don't need to pay 10 grand for a course yeah
• 24:30 - 25:00 exactly that's right going to get in trouble can't get in trouble read them shut it up shut it up oh no i think I'm enjoying this life of making enemies being like "Oh may as well just have them all they're going to come to your PP so the last one right now I remember sitting down with you in December and talking about a personal favorite of mine right um it was a something called Carum Downs now I know you remember it we've talked about it since then yes and you caused the Caram Downs housing boom at the time that's right god real estate
• 25:00 - 25:30 agents of Carum Downs there's some referral commission splitting with Adi here available bank account details in the description below that's right exactly yes oh my god if I if I have people come turning up to my house like you're the reason I can't buy a house then yeah I'm coming to your house cool i'm glad I'm not alone in this come to you it's true so we have carum downs that we spoke about 3 4 months ago right yes but what I find really interesting Red is Seafood which is the actual
• 25:30 - 26:00 beachside suburb in the sort of Frankston LGA showing some really good signs right in the last year dropped half a percent across the board right right so we're looking at a price point about 800 820 uh the yield uh uplift was actually not as dramatic in in this area which is quite interesting to me but this is where positioning comes in so if I sort of drop my listings again off the off the cliff I know I can see his screen here and I'm just like whoa what happened there it's like a roller
• 26:00 - 26:30 coaster yeah exactly just gone down we go and then vacancy rates are starting to make that shift as well right now I have seen some of the inspections and stuff in these areas right because what happens is car downs is too expensive let me go to this place you know people are buying in Frankston North now Frankston North is an interesting part of uh that LGA to say the least right um but people uh what's what's happening is because Frankston Frankston South Karen Downs it's just getting too expensive you go online and you sort of convince
• 26:30 - 27:00 yourself oh I can still buy a house for 650 i promise you you can't right it's not it's done the destroyed that for you so anyone looking at that has personally destroyed that opportunity for you he's a man who moves markets with his words he's a man that's moving move carum downs probably overselling it a little bit i I am joking anyone who's listening but uh the nature of car downs like we talked about it about 6 months ago and almost all like if you look at it anyone just go on real estate domain.com search
• 27:00 - 27:30 this up look up sold listings find two convearable properties do some desktop reports you'll see that there's been a material price movement in this area and it's material it's more than a few percentage points that's happened in the last six months not in the full data sets just yet but it will be as this uh starts flowing through correct so there's been some movement in these in these markets already these price points because of that macro story that we've been talking about as an underlying reason why and that's and and that's kind of the benefit of doing this together right you have that macro
• 27:30 - 28:00 narrative spelled out so nicely we were talking about Melbourne well before people started fanboying Melbourne right yes cuz you saw the macro changes happening you sort of started seeing some of the shifts that were happening and you knew that one of the big triggers was going to be the interest rate movements right trigger point for me and that's it and yeah one of the things that we sort of do at a layer we look at the macro we sort of see what's happening at a at a much higher level and we start in the months that come we start seeing that flow into the suburb level data the microlevel data and we
• 28:00 - 28:30 can see that what I'm talking about here this is microlevel data right this is a very specific suburb in Metro Melbourne in the Frankston LGA that's showing all the hallmarks and I hate saying this but kind of like the Perth of two years ago because that's what happened with Perth listings fell off the cliff there was a insane amount of demand that sort of came with that um and it's kind of showing the same hallmark so I love it um these are three examples i reckon there are probably many more suburbs like this uh in the Melbourne so this is a nice one though seafood's a bit more
• 28:30 - 29:00 expensive right it's 830 though no 830 oh okay wow wow nice i like it's called Seafood i'm like oh I want to live in Se yeah yeah exactly where do you live sir i live in Seafood seafood that's right i live in Karen Downs oh okay i live in Sydney no no no it's just like I call it I call it the Sydney thing this is Sydney siders will probably relate to this you go to coffee or you go to an event you get asked a lot where do you live what do you do and like you can sometimes see it on people's faces
• 29:00 - 29:30 there's a little bit of like weird Sydney Sydney I call it sydneyis right like you know housewife I live in I live in the hills or like you know you can feel the the pride they pop the shoulders back you know wherever it is sometimes you can feel that a little bit at these events uh and you know kudos to people it is a huge huge achievement and very difficult to do to buy a house and people should take immense pride in it but that is regardless of where anyone lives i think that should be part of their story what
• 29:30 - 30:00 we have noticed is sometimes that the status of a suburb can actually matter i don't know if the status of this is good but it's called Seafood yeah exactly it's got sea in it i mean if it wasn't next to the sea it would be pretty disappointing but it is there's the seafood beach i've been there it's really nice yes um so yeah that's us Red brilliant we've got three suburbs over 750 that are showing great signs of recovery rents are good everything's looking positive that's awesome ay let's wrap it up there that's three suburbs above 750K you may want to be looking at
• 30:00 - 30:30 to help you do your research adi you're a legend thank you so much for this you are welcome