Weekly Property Market Update - June 11, 2018
By Advantage Property | 11th Jun 18
Your weekly property market update by top Buyer's Agent, Frank Valentic
There continues to be more opportunities in Melbourne’s market place with a 59% clearance rate from a small volume of 180 auctions on the long weekend. We are often asked as to whether positively or negatively geared properties are the best strategy for investors. There are pros and cons to both strategies with negatively geared properties working more for clients that are in the building wealth phase and positively geared property when they are in the cashflow retirement phase.
Airbnb has been a popular strategy in recent years for many investors, including some of our clients. Based on recent survey, it appears that many are now returning to normal long-term rentals, due to the oversupply of Airbnb properties. A client of ours, achieved some great results with a one bedroom apartment in Clyde Street, St Kilda, although she has now advised the return has halved in the last twelve months with the increased supply of other properties coming onto the market place.
There is some exciting news in “The Block ” space as Channel 9 is reported to have bought their next site, which is the Oslo backpackers hostel at 38 Grey Street St Kilda. Rumour has it, they will convert the property into five residences which will happen after The Gatwick on Fitzroy Street is finished. The Gatwick has already been completely transformed and I look forward to seeing it start on TV in the not so distant future.
WATCH: Frank Valentic's second market update for June.