It is a Buyers Market Melbourne
Resident cash buyers looking for very high rental yields. There are some outer region suburbs that are performing very well, and have a low entry point price. These established properties are doing well due to holiday accommodation rental returns. Let me know if you are interested. Can you handle approximately 14% return on your investment?
Cash Buyers make up 69% of the Chinese purchasing into the USA. Chinese buyers often pay in cash. Approximately 69 percent of Chinese purchases were reported as all-cash purchases, according to data from NAR. (USA) Now, note that every Chinese person is only allowed to convert $50,000 per year. This means, you should begin transferring your money into an Australian bank immediately if you plan on purchasing in the next 2 years.
Of course you should buy in the Melbourne market!
The positive aspects of buying into Melbourne are diversification, immigration and education. Pollution is another factor that has become important for overseas buyers. Melbourne is a very clean and livable city.
The banks are lowering the lending ratios, at present a conservative amount is 60% with NAB. There are many rumors about this policy change. The best way to get to the truth is with pre approval direct from the lenders. This will give you confidence in the property search. It is very important to get your verification income and proof of available funds established early in the property search process. This strategy suits student visa with family deposits, residents with temp visa, and residents with permanent visa.
Auction is not the best strategy for buyers. The auction model holds a large risk factor. If a buyer on the day has emotional attachment, for example his family wants to move in to the place and stay for 20 years, you will not win with advantage as an investor. Auction is a game that involves luck. A strategy that is less risk is purchase private sale, and before auction. This allows an investment and return with flexible terms on the contract.
The Melbourne property economics are positive at present. This video is a great education piece. http://www.corelogic.com.au/housing-update/#indices-Melbourne
Buyers Agent – Working for the buyer. Research, Negotiation, Investment, FIRB.