Buyer Insights

EXPERT INSIGHT

With the stamp duty waiver for purchases of Victorian residential property set to end on 30 June, the next fortnight may prove fruitful for investors considering their next purchase.

The Australian property market is continuing to grow at an unprecedented rate, with the latest data from CoreLogic showing national home values rising another 2.2% in May.

However, not every suburb in every city across the country will experience growth.

The question then, particularly for those looking to grow their property portfolios, is when do I buy, and where?

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<h2>When do I buy?</h2>

Last November, the State Revenue Office Victoria initiated a land transfer duty waiver for purchases of Victorian residential property with a dutiable value of up to $1 million, and on 30 June, this incentive will end.

The waiver reduces stamp duty by as much as 50% for new residential properties - 25% for existing residential properties and vacant residential land. In other words, property investors stand to save up to $15,000 - and this is after other eligible benefits, such as the principal place of residence, and pensioner concessions, have been applied.

With some easing in the impact of government incentives, and Victoria being the only state with any such concessions available to investors, for Australians looking to diversify their property portfolios at a discount, the time to buy is now.

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<h2>Where do I buy?</h2>

Savvy investors purchase properties in locations where developers are out of sync with market demand.

In the face of significant and unpredictable lockdown measures, common sense might dictate that now is not the time to invest in Melbourne. After all, it fell six places in the 2021 Economist Intelligence Unit&rsquo;s Global Liveability Index, and according to a report by the Centre for Population, published in December, interstate migration out of Victoria is expected to grow as residents seek greater stability.

However, a strong investment is one built on strong data, and this data does not paint a complete picture.

There are select suburbs, even streets, in Melbourne where growth could be substantially greater than others.

Among these regions is Geelong. Unlike most other regional cities, Geelong is relatively close to a major capital city, being only a 90-minute drive to the Melbourne CBD.

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The planned Geelong Fast Rail will not only boost Geelong&rsquo;s transport infrastructure, but shorten the travel time into Melbourne, encouraging even greater numbers of city workers to take up residence in the region.&nbsp;In fact, the City of Greater Geelong is one of the fastest growing regions in Australia, with its population of 250,000 expected to swell to 350,000 by 2041.

Its unemployment rate (4.3%) is well below the national average (6.7%), and in the last five years alone, median house prices have risen over 46%.

Scott Kuru and Lianna Pan are&nbsp;Co-Founders of Freedom Property Investors

With the stamp duty waiver for purchases of Victorian residential property set to end on 30 June, the next fortnight may prove fruitful for investors

Melbourne real estate is ripe for investment: Freedom Property Investors

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St A, Cedar Woods’ new masterplanned community in St Albans in Melbourne's north-west, is attracting a wide range of buyers to its townhouse development.

Cedar Woods are offering buyers the opportunity to choose from six different floorplans, with each townhome ranging between two and four bedrooms.

Located in the burgeoning growth area, west of Melbourne’s CBD, St.A delivers a family-friendly community, a landscaped central park and stunning designs by DKO Architecture.

We recently spoke with Cedar Woods chief operations officer, Patrick Archer, to discuss the benefits of securing a townhome at St.A.

MK: Have you seen an increased demand in townhouse sales post-COVID-19? 

PA: St.A sales have seen a solid increase since late last year when restrictions eased and the economy showed signs of a solid recovery.

At the same time, the central park landscaping was installed and several stages of townhomes were completed so the project is looking amazing.

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MK: What are the buyer demographics of owner-occupiers purchasing townhouse developments?

PA: It has been a very diverse mix of buyers but typically, it has been first home buyers who already live in the area. There’s also a good proportion of young families and downsizers.  

MK: What should homebuyers look for in the ideal townhouse development? 

PA: If 2020 has taught us anything it is that floorplan functionality is the make or break of a home. Quite a few of our purchasers have told us that this was one of the biggest selling points at St.A, a floorplan that has outdoor space and allows you to set up a home office which is important to purchasers.

<a href="https://www.urban.com.au/new-townhouses/st-a-1-griffiths-street-st-albans" target="_blank"><img alt="" height="2004" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/sta-10-mckechnie-street-st-albans-9d1abe1b454fe77398ed1c690a5cfdf6_1.jpg" width="3000"></a>

MK: Do properties in St Albans hold long-term investment opportunities? 

PA: Melbourne’s western suburbs have been widely reported as the biggest opportunity for investors who want to make excellent returns.

St Albans is no exception and buyers at St.A are focused on the long term return on their investment with strong prospects for capital growth in a suburb that is so well serviced. 

MK: What does the project offer that other townhouse developments may not?

PA: St.A allows beautiful and architecturally designed homes, set around a large central park where neighbours can meet. These features and proximity to shops and transport is what makes St.A unique.

Also St.A is being developed by Cedar Woods, an ASX listed national property developer so buyers can rest assured that their homes will be delivered to a high standard. 

<a href="https://www.urban.com.au/new-townhouses/st-a-1-griffiths-street-st-albans" target="_blank"><img alt="" height="628" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/st-a-10-mckechnie-street-st-albans-42e8b87e5367c66d772c8261833858a6_0.png" width="1200"></a>

Townhouses in the community start from just $499,000 for the two bedroom, two and a half bathroom townhouse in the Argyle II.

Buyers can choose from a number of other configurations, including Sapphire IV, Amber, Topaz II, Novo III, Argyle I and Jasper.
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Urban speaks with Cedar Woods COO, Patrick Archer, to discuss the benefits of securing a townhome at St.A

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