Loan pre-approvals by banks can be confusing. They aren't a rubber stamp to buy whatever you want, but some buyers are being a little too cautious.
Invest where incomes are highest
Where would you prefer to invest? Where incomes are high or where incomes are low? Clearly the former is usally preferable as those with high incomes tend to be found where land values are high and they have the capacity to bid up prices further. As this map - built with Census 2011 median incomes data - illustrates, incomes tend to fall with distance from the inner suburbs. Although there are pockets of high income in Melbourne's outer north-east, outer south-east and in Sorrento, these are the exceptions to the rule.
The map should give those thinking of investing in the suburbs of the middle-west (e.g Footscray) and middle-north (e.g. Thomastown) of Melbourne pause for thought. These areas - covered in light blue - still have comparatively low incomes. No doubt a process of gentrification is underway, but to invest now is speculative.
Click on map below to see median weekly incomes in dollars of various postcodes.