Where To Buy In Melbourne In 2026? Top 5 Affordable Suburbs + Bonus

Awesome.

Now that's good. That's the good part of business when you are always busy. But and that's why we and this business keeps on going up and down and that's why we're picking up a town which has been on the radar for everyone. So Melbourne has been on the radar for everyone. Everyone has always looked up to investing in Melbourne. It's been the last two, three years where things have not gone the way a Melbourne city people investing or owner-occupiers would want it to go. But again, It is always going to be on a part of discussion for everyone. It is always going to be one of the considerations set for everyone and everyone's always focusing on, can I invest in Melbourne? Is that the place where I should go for? at this kind of a price range, I believe that the only way is up and so and so much and so much of questions and so and so much of speculation about what Melbourne is going to do and hence we are talking today about the top five locations. If you want to invest which are affordable locations and where can you invest or buy as an owner, occupier or a first-term buyer or upgrader. If you're looking at which are the best areas which I should look at, that's what we are going to do and we are going to talk of one bonus location at the end. That's my favorite. I'll tell you that's my favorite part of the town but I will reveal it. We'll reveal it at the end and that's going to be the interesting bit today. But before we go ahead and start talking about the suburbs and the best five suburbs or the top five suburbs as for us where you can invest or buy or as a first-term buyer get into, Just generally about Melbourne, how do you see how Melbourne market has been and will be in the next few years? At this stage, it's underperforming. So if you look at last 12 months history, there are few pockets which have a little bit gone up in the property prices, but they're still below national average. Melbourne has two structural issues. One is extremely high supply and then poor rental yields plus the bad government policies and very, very low sentiments within the owner-occupiers and investors. So from last 12 months, from last actually two to three years, The market doesn't perform pretty well. Yeah, but so that's why when you look at all the data factors like affordability or Demand and supply demand and supply a few pockets have good gap few pockets are all supplied. Yeah, so Melbourne always grow in the pockets So few pockets are doing good few pockets are doing very very bad because of the extremely high supply. Yeah, but structurally when you look at the affordability for the investors and then owner-occupiers Yeah, that has improved a lot Absolutely right. That's why Melbourne, I suppose, is one of the most undervalued capital cities in the country right now. Significantly underperformance over the other towns like Perth or Adelaide or Brisbane and Sydney has anyways been an outlier. but all of the other three have really really gone at a different trajectory whereas Melbourne has been has been left behind a lot in all these years and that's what has got a lot of borrowing power, negotiating power in the hand of buyers because auction rates have not been following and they've not gone through the way they should have gone through. People are able to There is no urgency that I have to buy today and I am going to miss out that there is no form over there. There is this you can easily find a lot of alternatives and I think one of the key reasons for all of this happening has been the investor XORUS out of Victoria in particular but Melbourne even in more particular. because Melbourne has the prices are higher land prices are higher which brings higher land taxes it brings other property taxes into the picture so you know as an investor you start singing okay I really don't know what's happening it used to be the place I want to invest and now suddenly I just don't know there's so much of an uncertainty around whether this is going to become better or it's going to become worse and it's impacting my holding cost and I don't want to be there in that situation. But it is becoming a good part for first home buyers or owner-occupiers who want to buy a property, they are liking it. They are liking it, right? They are thinking that this is my chance to be into it and at a good price point and maybe I do not have that chance tomorrow. Yeah, because it's the most affordable capital city in Australia. So if I'm an owner-occupier and my budgets are in between $500,000 and $600,000, still I can buy a property in Melbourne, which is nicely built 4x2 worth around 300 square meter per lot. So that's the owner-occupier's paradise. You have a lot of jobs there. It's a capital city. Plus, you can afford a good home. But what I can see is a lot of investors are exiting, Melvin. Yeah, that's right. That's true. And then, investors are exiting. That's why more amount of properties are moving out of the rental market. So, when I was looking at the rental bonds, they have reduced a lot from few months. So, that will be an additional property rental property crisis would be next few months. That's what's coming. Because obviously, if the rental properties are going to go down slowly and structurally, if the supply is not going to catch up and there's going to be more and more owner-occupiers, at a point of time, there'll be an inflection point where the population rises, the number of properties available for renting is lower. And then you start finding, okay, the rents are ticking up. That I think is definitely one of the points which is going to come up in Melbourne in some point of time. Yes, and we can actually see that. So, there will be time when you will have very less properties available for the rental. At this stage, supply is higher. Your yields are way, way poor. So basically at $700,000, if you're sitting at around 3.8% yield, and rental rises are not happening that fast. So unless you have that inflection point when you have very limited property stores for the rental, Still, there you will not find a good rental rise. If you don't find a good rental rise, then there won't be more yields for the investor when investors are interested. So, if you want to see a good property price growth in the future, then that has to change. That has to change. And you're right. Melbourne, because of this, has become maybe a pocket city you know some pockets which are say heavily investor driven are pretty weak in terms of price rise and in terms of rental rise as well pockets which are heavily owner occupied driven they are still rising in value and they are creating value and their rents are rental yields are relatively better off than the other part of Melbourne. So this kind of a two-speed market is still coming there. Good quality properties are still selling pretty well and they're rising and that's what we're talking today, which are the best five suburbs where someone can buy and we'll see what's happening there. But I think one of the key turnaround points will be the interest rates. Interest rates will determine, it will be a good catalyst to what happens into the future. If borrowing starts improving, say some point of time hopefully in the next year, next calendar year, rate cuts start happening or rates start becoming better or interest rate scenario becomes better. That's where the subdued demand can suddenly turn and then higher borrowing capacity will obviously mean higher competition, will obviously mean established suburbs will have a better price point and will have a better people wanting to go there and that may drive prices. in conjunction with population growth and then the rental growth. Rental growth as well. That can change a bit of a scenario for Melbourne. Yeah that will give little relief to investors because then you can afford to hold properties in Melbourne. If interest rates are going down and then when we are talking about the rentals are going to rise because a lot of investors are exiting. That's the point when we can see yes there will be little movement in the property prices. There will be a bit of movement in the property prices, absolutely right. And that is what people would want to see in Melbourne city in particular of what is my future. But future is one part. Let's come back to what we are here for. What are the top five suburbs if I want to invest or as an owner-occupier want to buy? what are the top five, what are the best five suburbs in the affordable segment which we want to go and let's talk of geographically how would you place these suburbs in which areas and which part of Melbourne do you think we'll be looking at? So Melbourne has a lot of supply around but when we look at in which direction Melbourne is growing versus where we would see there would be good property price growth there are few suburbs in western side few in northern Corrido. That's where we could see in price guide of in between $700,000 to $800,000, with at least a rental yield of close to 4%. That's the location where we could see... Okay, let's jump into the first suburb. You're making me excited. Okay, let's jump into the first suburb. Which one do you think will be the first suburb which you'll pick up? Maybe the first one in your category. My first pick is from the western side, the suburb called Deremat. So, Delimart is towards the western Melbourne, but it's not going towards the extreme western side where towards the Tharnate or Windhamville where you see an excessive supply. It's towards, it's after the sunshine, so basically it's close to the Deer Park or Lava Turn and then it's a supply which is landlocked surrounded by, surrounded by All the suburbs are a little bit older. But that's a new suburb where we could see geographically, the suburb is landlocked. And then there are a lot of owner-occupied demand, because properties are relatively newer. And there are a lot of upgradeers from Sunshine and other surrounding areas towards the Derimet. So when we look for why people should pay attention to that, because From last one year, I could see there is around 10% price growth. And unit prices have gone up by very close to 50%. When we look at the rental side, the rental growth is also significantly higher. And massive supply and demand imbalance has emerged in unit and townhouses segment. Okay and that's that's a good point because people are wanting to buy there and they are saying okay I may not be able to buy a house so might as well target an uptown house or an apartment there because I want to stay there and that's that brings us that okay that's why the average time to sell has now dropped by more than half there and that's drop has come it's showing how buyers are wanting to have urgency around it and want to move there and I'm there is a bit of a I want to be in that suburb scenario where people would want to jump in that area. Yeah, that's correct. Because when you look at data, currently the median houses are very close to 830 for the houses, where last 12 months growth was close to 9.9%. Oh, that's a good growth. That's a good growth. And the price range, it's a good growth. It's about 100,000. Yeah, it's a very, very good growth. And then when you look at the unit prices, medians are very close to 687.

Yeah.

Where in last 12 months, we'd see it's 24.4% growth. And there's a good amount of scarcity there, right? That's a good amount of scarcity, yeah, because of the affordability. So when you look at the rentals also, the weekly rentals are very close to $650 per week for houses, yeah. And units is around 580 per week. That means in terms of the yield, houses are very close to 3.9 to 4% gross, but units are around 4.8%. Yeah, that's pretty close to 5% and that's what you can see the average in the other parts of the country as well. In good areas, you get about close to 5ish%. Close to 5ish%. And then when we look for the rental turnover, the vacancy rates are very close to 1.1%. So that means you really don't have more houses for rental, but there is excessive demand. When you look for the selling cycles, the liquidity score, which is days on market, are in between 20 to 28 days. That means market is hot. Market is hot. Properties are moving faster. And the current inventory is very close to 2.63 months, which is below 3%, which is good, tight supply. This is tight supply. And in the last 12 months, rental rise was around 3.5%, which is moderate, not good. Yeah, which is moderate. So maybe this is because it is the one of the growth. If I look at the growth drivers and I think what maybe that points out to the data which you're saying population growth has been a clear growth driver there because people are younger professionals and corporates and all of these people in the in the early 40s up to 40s of 20s and 30s and 40s and they're wanting to go there because it's a It's good proximity to the CBD and to all that employment hubs and all the infrastructure which is there. You can straight away drive into the cities, straight away connect to the Ring Road and then straight go into where you want to go. If I'm a transport worker and if I'm staying there, I can access the train stations in Deer Park, I can access the train stations in Southern Cross Station. So it's extremely easy for me to go there and that's why it's pretty good. It's very well connected. You take a train from Deer Park and then you go to Southern Cross. It's a straight line. It's a straight line, right? And that's why you'll find a good owner-occupied demand because I would love to upgrade. If I'm living in Footscray, if I'm living in Sunshine, I would love to upgrade and go into these areas and I can buy a nicer house there, a better house there from a smaller thing which I have there. I can, the investors are also wanting to be there because they can see that, okay, I can get good rent out there. Rental demand, as you gave, rent is pretty nice, right? And it's a nice lifestyle to live around the golf course and all that stuff there. So it's a nice area to be in, right? Yeah, correct. And then when you look at the investment potential why people should choose that. So capital growth expectations in future are good because of the landscape city. So it's a suburb which has been surrounded by all the oldest suburb. You're very close to the city. You have all the amenities to go towards the city well connected. And it's an even kind of community where most of the owner occupies from the surrounding suburb would like to upgrade there. All right. Yeah, so even though when you look at the unit yields, it's around 4.8%. That means great yield and then good capital growth. Demand versus supply, yes. Supply is extremely poor there. So good demand. Only thing is we need to have a few drivers like interested cards or there should be a good sentiment within the people. But it had seen a massive 24.4% growth in the unit market and around 10% growth in the housing market. So that's a good suburb to invest. That's a good suburb to invest in. And it's pretty close to the near park station, right? It makes an instant attraction to anyone. And if I can't buy a house, I can instantly get into a townhouse and I'm liking to go into that. And that's a segment which is helping it grow very well, right?

Correct.

And I was looking at the whole periods as well. Whole periods are more than 70 to 80 years. That means people actually holding properties there. They're not selling it. They're not selling it. They're not selling and moving out from there.

Correct.

They're well settled when you go there. You like the suburbs. So you find, you say, okay, I'm happy here. It's owner-occupied choice. In that category, in that segment. That's what attracts investors as well that it's an owner-occupied choice suburb. So if someone wants to go there, I'll get a good rent out there. And I've got a consistent rent out there and the kind of people who live there are nicer. So my house is protected. So my investment is protected. So owner-occupiers are definitely getting attracted there, but it's also investors. Also investors. Okay, cool. Let's jump into the next one. Which is your next best suburb? Next week is still invest called Yipak. It's a little older suburb, but it's still close to CBD. So when you look into the investment section, if your strategy is to hold a good land close to city, where in future you can actually do something and then manufacture the equity from the land, then that's an opportunity. So basically, deer park is also surrounded by a lot of industrial cluster. So there is a lot of industry. Social economy-wise, there are two sections in deer park. There's one which is in your side where you can see new good houses like Derimut. There is a side towards the Laverton where you see a little bit of older section of the deer park where you can see good land sizes as well. So at this stage, when you look at the demand and supply, indicator for the deer park, it's always very, very strong. Even though it's a mix of owner-occupiers and investors, so ratio would be between 70-30, but still it's an old suburb where you can have a good potential on land banking. Absolutely right. And I think when I was reading about Deer Park, I think a lot of it is already built out. So older blocks with about, say, $600,000, $700,000 is what they're selling for. And you can then knock down and build something nicer there. So that also helps you preserve the price, right? Because your floor price for an older area is around $700. So you know that my price is never going to go down there. If it's going to go down, then I can make something better out there, right? Because you're holding a good property at a land price, so when you go towards the suburb which is touching towards Dharimat, then that's a good side of the DfPag where you see a lot of Niva construction and a lot of owner-occupiers are upgrading over there. When you look at the data site, at this stage, the median prices are very close to 650 to 700. It depends on which side of DfPag you go to. There are a few properties which are in 800,000 as well. And then last 12 months, it has grown by around 67%. unit prices are around $510,000 and then when you look at the yields or first of all the rents, your rentals are in between $495 to $550, depends on what kind of property pickup because in Deer Park, you will see variety of the properties. In units, median rentals are very close to 450 to 470 per week. So, in terms of the yield, houses yields are very close to 4%, and unit yields are very close to 4.5% to 4.8%. Vacancies are tight, so vacancy rates are around 1.2%. In general, Melbourne vacancies are around 3%, India Park it's 1.2%. So, you have extremely strong vacancies over there. When we look at the liquidity side, which is on the days and market, which is around 24 days, below 30 days. Well, that's very good. It was pretty strong before these budget changes. Now, every market is a bit slower. That's why I could see the days and markets are increasing. But consistently, days and markets are very strong in India Park. Inventory is very low, 2.6 months, which is below 3 months, which is very good. Rental growth was not great. It's very close to 0.4% in last 12 months. So other than that, demand and supply is a lot of gap. There is a lot of investor pressure. But rental-wise, we still need to have a bit of downside in the upper. I understand that and I understand Deer Park. I've done a bit of analysis on what's the driver for growth in Deer Park. Again, if I'm a migrant family and if I'm a white collar guy who's working in the office somewhere, Even if I am working in any other warehouses or factories or industrial zones out there, then I would love to be there. Because rather than going to your Windenwales and Melton's of the world, I would prefer to be here. I don't need to commute for long. Within half an hour I can be there where I want to be. And it's good. And that infrastructure which is providing this train connection and all this connection to CBD and to the other parts of Melbourne, It's pretty good. If I'm working on the port, pretty good. I think it's straight to go from there. Airport, pretty good if I want to go. It's pretty easy to go there. And that's why I think first-room buyers have a very good liking for this area. Deer Park is, I think, loved by first-room buyers with the three-bedroom, four-bedroom kind of houses. They'll say, okay, I can't go to the inner metro, I can't go to the other side, but this is an area where I can get a good 700ish, 800ish property in this and that's what even attracts the investor as well. Okay, post-home buyers are going there, so renters will be strong, might as well, I don't need to go to Chuknina and something, but I can, my people will live here and they can go and work there. So I, then my investor demand still, creeps in from there and it still allows us to be there. And it's a good area to live in, a good area to be in. And that's why first home buyers are pretty much liking it. They will want to invest. Good young professionals will want to invest into it. Younger couples are wanting to invest into it. Value-based investors are wanting to invest into it where you can see that, okay, I am getting a great opportunity out in this suburb. Is that right? And that shows in the investment potential as well? Yes, so there is good investment potential because in between 600 and 700 thousand dollars you have an opportunity to hold around 700 square meter land and you are around 17 to 18 kilometers to Melbourne city. That is number one. Number two is you are surrounded by the land blocks above where there are more opportunities for subdivisions and then There are few pockets which you need to avoid like towards the industrial zones or towards the Leviton, but especially when you come towards the Deremit side or middle of the Deer Park, then yes. Demand and supply is a lot of gap. Your rental yield is the study. It's around 4% at this price, even though rentals are not growing too fast, but we could see still there is improvement in the socio-economy also. So when we look at the rental demand, yes, 4% is good in unit, also you have 4.6% rental yield. You don't have more supply coming up. There is a demand from investors as well as owner-occupier as well as the developers. So Unique Insights is basically these suburbs which will have a good characteristics of older suburb which can offer a lot of land potential. A lot of land, good part. So a lot of land potential and I think people have a good holding period there as well. So it's the houses have been passing on from generations and you're holding on to it. So if I were to be able to buy a good 600, 700 square meter of land in an older, which is an older house out there. Maybe if council allows me, I can subdivide, I can do development, I can do a lot of things out there. Townhouses are coming up like crazy out there. I mean, the new government rules, maybe it's easier to get up to three townhouses built in a property. It's a no-brainer for a lot of people to be able to get into Deer Park, right? Yeah, that's right. So it's a good suburb, a good investment potential. If you have a long-term planning, what do you want to do? And if you're not expecting immediate growth, then it's a suburb to invest. All right. OK, that's very nice. That's two down. Now, which is our third best suburb now? On the north side now. You're jumping north? Yeah, coming to north. So we are going towards the Lallor.

Yeah.

Good suburb, very, very popular within owner-occupiers. A bit expensive, but it has a different quality. I could see there is more competition within a lot of owner-occupiers. You could see mix of properties. You can see properties which are literally old with the good land sizes and selling at very close to a million dollars as well. You can see townhouses built and they are selling at very close to $6,700 as well, so there is a mix of variety. A major demand and supply is a lot of gap and there is a good buying opportunity existing to that suburb. I know, I agree. When I keep on reading about what people say about property market, Leylor always stands out because everyone points out to the fact that this is the last suburb which is within say 20 kilometres of CBD. where you can still buy a house for 800,000 or below or somewhere around there, you know, and good 500 square meter plus kind of a block you will get there. So it's a premier, whether it's an owner-occupier or an investment, it's a phenomenal area where I can go into and where I would love to go into. So people would definitely pile on. That's why Lelore will always be attractive. People would love to pile on to such a last remaining place which can get re-rated very quickly as soon as things change for Melbourne in particular. Correct, so it's a suburb where if you are not considering too much about the negative gearing or cash flow issues then that's a suburb where because of the owner occupied demand you're gonna see a good property price uplift. So when you look at data At this stage, median prices are very close to $775 to $800,000, depends on the property type. And in the last 12 months, it has gone up by around 9.3%. And units are still at around $600,000. Rental units are a little poor. So weekly rents for the houses are very close to 580 to 620. Depends on where we go or what kind of house we buy. Units are very close to 485 per week. In terms of percentage yield, houses are yielding between 3.6 to 3.8%. Units are very close to 4.2 to 4.5%. So yield is moderate. Vacancy is very low, 0.9%. That means it goes off the block very quickly. Yes, because there is good demand within the renters as well as a lot of owner occupiers are coming there. So they try to rent there and they try to buy property in that suburb itself. So it's highly desirable owner occupiers suburb. There's a market very low, 17 days. That's very good, right? Extremely high competition. At this stage, there is no inventory at all. It's very close to 2.5 months. And then it's a small suburb. So when you look at the sample size of the data, it's still good. When you look at the rental growth, around 4%. It's a moderate rental growth. But that's everywhere in Melbourne. everywhere in Melbourne. So, if you are around 4ish, then you are similar to what your other places are. So, it is not bad at all. And I think you are right. It is an area where people are getting attracted because they say, okay, instead of going too far off, let me be close to that, I find that There is a good, the Thomas Town Rail Station is next door. So, I can go onto that line and straight reach the city. I can jump onto the ring road and I can go pretty much close to the city. So, my growth drivers get into this and then there is that strong health and education sector corridor which is next door. So, I can just connect straight away. So, this allows me to think that okay, this area is definitely going to grow. You've also spoken that it's so close to the CBD is one of the last remaining areas. So close to the CBD that I can find finding that owner occupiers will say, I want to be there because it's a good character. It's a nice character suburb, which is there. So I would love that. I love the appeal of it. Investors are saying, OK, such a low vacancy rate, such So, everything is good. I can lease it to families, I can lease it to students for the university, I can lease it to people working in Epping Commercial Zone. I can do so much of stuff there and it's an area where which is full of cafes and markets and nice places and that's why professionals and Upgraders and people who are coming say from reservoir and Preston, they will all want to jump into that suburb and you know as an investor as well. So if I'm a person who doesn't want to take too much of a risk and I want to be a conservative investor, not a bad area for me to invest in and that's what they are doing as well, right? They're saying, okay, not a bad area for me to invest in. I want to be in this area. It gives me consistent and not guaranteed, but close to guaranteed kind of a return out there. Yeah, correct. Because the entire last year was very bad for Melbourne. But even though when you look at the capital growth potential, it grew by around 9.3%. And that's a median. That means there are a few properties which would have gone higher than what we expected because there is a competition. When we see now, it's around 17 days of market, which is extremely good in terms of the capital growth. Towards the rental side, that's why when you are in between, you can hold a little bit of negative, but you'd like to get a good capital growth, then that's a sub-up, because it yields a poor, but not that poor, that basically you're sitting at 3%. But still, there is good demand, because you have a mix of properties, you can go into the newer properties, They can go and leave good rental yields. Since it has good proximity to city and it's highly desirable suburb, there are a lot of properties which are older. You can actually hold a good land and then there are good subdivision opportunities also. So basically you can manufacture the growth. So that's a suburb where if you are really looking for a good capital growth where you can hold a little bit of negative, then that's the right suburb to invest in. Okay, so if I were an investor on Rockypire, give me one key insight which what I should do and if I want to go into Leila or what can I do and what should be my game plan out there. Okay, if I am an investor and then probably I would look for In Lello, there are availability of properties which are built old, but towards the older side of the Lello. I would definitely go and buy property which is old and which has a good land size because that's the pocket where we're going to see a lot of subdivisions. That is the good mantra for an investor. And for the owner-occupier, yes, it depends on your budget and where you want to live. There are good quality homes available in the Lalor as well because of the lifestyle, because of the connectivity. I could say there are a lot of young professionals are moving into Lalor. So if your budgets are in between seven and nine hundred thousand dollars, then it's a great suburb to invest as an investor as well as for auto occupiers as well. All right, OK. And that's why I think that's why, like you rightly pointed out, a lot of builders are targeting the older villas and older townhouses who hold a large amount of land. But also, because the strata is pretty low out there, so people are able to live well. And then when developers come and buy it from there and try and build a high rise or try and build those apartments, you get a good value out there as well. So it's a good combination in that you're able to buy. It is a great combination. That's why it's very good for high capital growth perspective as well as good support for owner-occupiers when you're looking for connectivity, when you're looking for a good social economy, when you look for good schools, plus when you look for a good industrial zone. So it has all the features. Oh, fantastic. Thank you so much for that. Which is your fourth one, Julius? Which is our fourth one? That is still in north, called Thomas Town. All right, next door. Yeah, next door. Good suburb. When you look at demand and supply indicators, not a lot of supply available. It has a mix of properties. So you can have both kinds of properties, but most of the properties are older. But, there is a good potential in the land because it is still closer to city and then there is land has lot of value. So, when my strategy as an investor is still the capital growth with good land holding, then that is the work to invest. That's a suburb to invest.

Okay.

And that's where the opportunities exist as well. You know, that's where it is.

Okay.

That's a, that's a good point because Thomas town is again, an area where developers are, you know, flocking on the land and trying to build something, trying to subdivide, trying to make townhouses, trying to make houses, trying to make apartments, trying to make a lot of activities happening out there.

Right.

Yeah, that's correct. So when you look at the data also, current medians are in between 780 to 820, depends on kind of properties we look at. And the last 12-month growth was 6.1%, which is moderate, according to the Melbourne's, because Melbourne was very slow from last one to two years. Unit prices are close to 553,000, because they are older. So you can see a lot of older unit complexes as well. And then rentals are poor, actually. So basically, for houses, the rentals are in between 540 to 570 per week because they are older characteristic homes. Units are entering at very close to 480 per week. In terms of the percentage yield, 4% on the houses, and unit will be very close to 4.2, 4.3%. Vacancy is tight, 1.1%, considering Melbourne. Most of the Melbourne is 3%. It's 1.1%. Desert markets are strong. It's not as good as Lalo, but still it's 30 days. That means market is hot. Inventory is actually shrink to lot, because it's a small suburb. So your inventory is around 1.79 months. And rental growth was OK, which is around 3.85 percent. OK, yeah, I think it's because it still has to catch up with the with the with Lelor. So Lelor has developed quite a bit. It is and it's a it's a slightly different market. I think more attracted by young trade skies and first home buyers rather than And maybe a little bit of a working class families who come there, that they are driving the growth out there. And obviously they would love to have the connectivity which the Ring Road and the town station offers, and being near to Epping, closer to Epping than Leilor, so that also offers that. And that's why as I said the first one the owner occupied demand is pretty strong by people who are looking at brick houses and you know the older with long good strength houses which are there. Rental is nice, rental is nice and especially units is alright. But it's a good defensive kind of a market, not a very aggressive investor market which is there and which is why people would love to buy there. And as I said, tradies and trade skies and younger people and construction oriented people who are loving to do that. Cash flow focused investors are loving to buyout in that area and that is what is driving the area and who are looking to buy there and I think if you are one of them, you should be looking at buying in that area. But how do you think is the investment potential working out there? Yeah, capital growth potential is good. I could see a lot of ripple effect coming from reservoir because reservoir is in million dollar. It's very close to reservoir and then You can either manufacture the equity from land division, that is very well possible in Thomaston because you can get good block sizes. Also, when you look at the rental side of things, it's very close to 4%. It's not bad for the price because at around $780,000 to $800,000 property, if you are able to secure 4% rental, it's okay, but you are holding a very good land size. So you can manufacture the good amount of capital growth in future. Units, you'll get around 4.8%. So if you look at last one month's data, probably it will be a little shaky because after budget, markets are a bit slower. Prior to that, the auction clearance rate was extremely higher. That means there's a good demand. There's a good sentiment within the population. All right.

Fantastic.

So again, my, one of my questions, I think I've been bugging you a lot about this question. So what's the, what's the key insight, which if I want to buy there, what should I buy? What's something which will make me get value? In Thomas Town, if I want to buy a property for myself now, I'll pick up at least 7 to 800 square meter lot with nice three-bedroom, one-bathroom house on block. Two-bedroom ones, the older ones. Older ones, three-bedroom, one-bath, which is a brick home. Or in Thomas Town, there is a lot of availability of house and grannies as well. So I could pick up that for the higher yielding. But picking up the good block size, it's key aspect. Right, okay good block size which I can buy out there and then which are close to the you know the train lines, the behind the train lines or something versus the other newly constructed townhouses. I think this is the large land size and good value which I can get and I anyways don't have a vacancy issue out there. These are the suburb where you don't see a supply. It's a landlocked suburb so Three or four of them, after that you could see supplies coming, like when you cross Epping, then when you cross the Craigwind, Wallen, Postard, you could see a lot of supply coming up, but these are very close to city. They are very close to city. They are landlocked. These are very close to cities. That's it. Fifth one. That's the last one. Fifth one. Which one do you think is there? Fifth one is still in North Epping. Again, close to it, right? Close to it, yeah. So it's a good suburb in north, not a lot of supply, still landlocked. When you look at the last year's growth, so last year it has gone up by 9.6%, and your vacancies are still below 2%. Demand and supply is a lot of gap, good rental yields, and then you have a mix of both the properties. You can see a good newer homes as well as you can see a good block sizes as well. Yeah, absolutely. And the good and the strange or slightly weird part about Epping is it has newer houses, but the good part for someone who's buying, they're still not very expensive. And so there is an immediate upside which is available in the near future or at some point of time, which can come as soon as it gets rerated to all the other ones. It doesn't have those problems of the other neighborhood suburbs, which are whole art and all that, which are growing like crazy, have so much of land available. It's not. It doesn't have all that here, right? Yeah, that's correct. So it's a landlocked and not a lot of supply available. plus good subdivision opportunities. When you look at data, current medians are very close to 745. In the last 12 months, they got good growth, very close to 10%. Rentals are quite OK. So your yields are very close to 3.9%. And for the units, the yield is 4.8%. Moreover, when you look at the unit prices, they're very close to 530 to 550. 12 months' growth was around 8.9%. Yeah, all right. Vacancies are below 2%, very close to 1.5%. Not bad. Yeah, not bad at all. Liquidity is 29 days, which is below 30 days. So days on markets are good. That means good competition within a lot of investors and owner-occupiers. Inventory is below 3 months, 2.93 months. And rental growth was moderate, which is 2.77%. All right, okay, no, that's fair. And I think Eping has a good attraction to young families, young professional families, healthcare workers, and people who are working in offices. You are not too far off, and you can live in a good, nice community. I love the community out there. People can be there and the whole precinct which is coming up is very attractive to be there, the hospitals, the train station and so much of the polytechnic that thing which is coming out there, the campus which is coming there. It allows me, if I am an owner or occupier, I would want to be there. I am so next to the good schools and the hospitals and the retails and all that stuff which is happening there. I am an investor, I find low vacancy rate, 1.3, 1.4, 1.5, no problem at all. Then medical workers and pharmacy workers and all these professionals want to come in. They are good tenants. So I'm fine. I'm happy with those guys. And that's why even if I'm a medical professional, it's a good area for me to choose to live in. If I'm looking at a good big four bedroom house, if I'm looking at a An investor who also has an investment in commercial areas, I would love to go there and buy there. And that's what an investor, as a defensive investor, risk averse investor, I would want to say that I'm a risk averse investor. I'm an investor who wants to have a good steady rent coming in. I'm also finding that there will be an upsize which comes in there. And when I sell, there will be a good upsize in the price as well. That's the area which I want to. And that's why I'm saying Epping. That's right. And then how does it transform into an investment potential Julius? Yeah, so it has very good capital growth potential because of the amount of infrastructure related funding it has. So they have very close to $2 billion of funding for private and public investment in new webbing present. All right.

OK.

So basically, you could see there's a lot of jobs opportunities towards the education sector, towards the health sector. You could see there are a lot of new homes coming up, which are like, and then they are tied in supply. So if you're able to buy something on the bigger land in Epping, it's pretty good, because Epping is an area which has been very, very tight in supply and there is higher demand. And then high structural defense available, housing stock is heavily restricted by commercial and medical zoning. All right. So we're talking a lot about the medical zoning. We're talking a lot about the pharmacy and the medical guys and healthcare sector guys. So what's your key insight? If I want to buy into Epping, where should I buy and what should I avoid? If I don't buy an Epping now, my answer is still, you can go mix because there are a lot of investors who don't want to spend more maintenance and all, then probably you can buy a good house, nice four-bedroom house with 350 to 400 square meter land. You can still see a good capital growth towards the new present, where you could see a lot towards the new present. Or wherever the zoning has been changed and then you see they can be backed of the medical zoning, then probably try to get Older properties over there where you can have a subdivision potential. So closer to where all this medical activity is happening, that's the area to be in. Rather than avoiding the areas which are towards the northern fringes, towards Walat and all, we just try and avoid that. Not the place to be in, right? Okay, so I'm that's that's pretty that's a good insight So which that's an area which I can target even if I paid 20 30 40 grand more for it in the long run That's going to be much more valuable for me rather than being in the in that In closer to the volat in all that area where this yes things are happening lot of home and land and new stuff is coming Which is not so desirable because it may it's it doesn't have that value over the long period of time All right. No, thank you so much. I think The time has come where we try and talk about our bonus suburb Julius. I'm excited now. That bonus suburb does bring a different value to us. It brings good value and whenever I talk about it, I get so tempted. Why should I not invest in there? Let's say Julius. So, bonus suburb is Carrom Downs. All right, okay. So it's towards the southeast and a part of the Mornington Peninsula. It was most talked about from last one and a half years, love eating to 24 months, basically. Had seen good amount of growth, close to water. Even though there is a bit of supply available towards the Clyde or South East, but this is the suburb where you are coming more towards the ocean. I could say there are a lot of owner-occupier upgrades, lifestyle of graders, as well as a lot of investors. Because of the three main things, you get good properties with good land sizes. good rental yields, and then there is extremely high demand from an investor. It's a small-sized suburb. So not a lot of properties available there, but it was very good. And I think you're right. I think it comes right in between Dandenong, where I can do a lot of work and I can be employed there, and the other monitoring peninsula. Anyways, that's where the life is. So you want to be near that. You can be next to the beaches and the coastal areas. You can enjoy your life and you can go to the beach pretty quickly and so work and enjoyment, it's a good combination, right? That's right. So when you look at the data side, that's only suburb. In early to mid-800s, median prices suburb in Melbourne, which was grown by around 11% in the last 12 months. That's pretty impressive.