Against the trend elsewhere, clearances at Auction and housing Sales are definitely up in Victoria. Partially driving this is the appetite for young home buyers to choose Apartment or Town House Living as their first option when utilising the first home-buyers grant.
What does this mean for current homeowners and potential retirees looking to convert their major asset into stronger liquidity for the future? It means that the market for apartments, units and townhouses is becoming much stronger than has been previously experienced. As stated earlier, to date, Real Estate clearances have not been severely impacted by Covid or the current economic conditions in Melbourne, and may well not be.
Because of this there is strong opportunity to capitalise on many existing properties suitable for strata development. In areas where housing stock was constructed during the mid-century period onwards (from 1945 up until 1990) there are large blocks with older properties simply not suitable for renovation. This can be due to deterioration of the building, the actual layout (3 bedroom weatherboard for example) or simply an inadequate return on investment if renovated. Many of these older homes are now being sold at or about ‘land value’ only.
This is where there is opportunity. In many areas of Bayside Melbourne, South Eastern Melbourne, Eastern Melbourne and on the Mornington Peninsula, zoning changes now permit ‘Strata Development’. This means it is permissible to build Apartments, Units and Townhouses on these blocks with all council approvals. Dual Occupancy is another option in areas where restrictions are tighter.
What this can mean for the property owner is a capitalisation of their primary asset – the family home. Rather than a simple sale reaping low rewards on an unrenovated property, here is an opportunity to make substantial profits.
Want to learn more? SLR Concepts are experienced and competent builders of Apartment Complexes, Units and Townhouse configurations. Call now on 03 5981 0661 or leave your details here for a prompt reply.
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