"OVER SUPPLY" "he cries from the top of the mast".It used to be "LAND HO" but today the cry from aloft is that we have too much and too many, at least that is what our doomsayers are writing on their cardboard cut outs.
Well the news is in, the renting market is strong and demand is bountiful, Yes i am talking high rise developments and apartments throughout the CBD.Now the information you are reading in the media is correct, there is a phenomenal amount of development in progress and the occasional crane collapse and city blockage just to keep us on our toes and morning breakfast radio in business. I must admit that I too was a bit of a skeptic with the thoughts of "are we going to be the new Ireland"
The facts are however that rents are at top dollar even with a low interest rate, and demand is high, not just for Developers to build but for Purchasers wanting more. Overseas investors do make up 28% of sales, however we are not even seeing a fraction of these property's enter the rental market.
Yes this is pushing first home buyers out of apartments in the center of the city, but ask your self when was a first home buyer ever able to purchase in the CBD?1851, Melbourne's population was 25,000, a flag pole on the hill of now "flagstaff gardens" is the signalling station to ships arriving to harbor and where by the type of flags raised aloft you could hazard a guess at what goods she carried.
1880, Melbourne population was 280,000 30 years of gold the gold rush has done us well - The year is now 1881, population is 450,000 Melbourne is the second biggest city in the British Empire, "Flagstaff hill" is now "Flagstaff Gardens" the trees are freshly planted and paths are being constructed and flower beds are blooming and there is a man on a soap box crying out that his kids can not buy their first home in the city and that they have to purchase in the outer suburbs of Carlton / Collingwood .....
Just some food for thought my readers.
My advice to any young purchasers, invest where you can afford, and rent where you want to live. And for the rest of you intrepid investors, i wish you "Calm seas and Smooth skies"