Menu

Melbourne’s undervalued investing suburbs

Too many property investors are seduced by the allure of the next ‘hotspot’ – that undiscovered locality that’s on the verge of great capital growth.

We at Wakelin Property Advisory reject the hotspot phenomenon. Reality rarely, if ever, matches the hype of the hotspot boosters. Hot spotting is little more than speculation.

But there are some suburbs that, in our view, are genuinely undervalued, based on the fundamentals of our investing philosophy. It is reasonable to expect that these suburbs will eventually be ‘re-rated’ upwards by the market. These suburbs are therefore worth considering as a location for a long-term property investment (as long as you find the right asset).

In this one hour webinar Jarrod McCabe, manager of our property advisory team, and Stuart Wemyss, director of ProSolution Private Clients discuss Melbourne’s undervalued investing suburbs, consider the hotspot vs. undervalued suburbs issue further, give our take on which suburbs are undervalued, and how to invest wisely there.

Key moments

Time stamp (min:sec)

Hot spots

0:49

What is an undervalued suburb

6:38

Undervalued suburb – Ascot Vale

9:18

Undervalued suburb – Thornbury

12:30

Undervalued suburb – Coburg

16:06

Undervalued suburb – Seddon

18:25

Financing and strategy considerations

20:58

Q&A starts

34:20

Ends

56:30

No.

Questions

Time stamp (min:sec)

1

As a novice investor, is there any way for me to determine if a suburb is undervalued?

34:26

2

Where do we draw the line when it comes to a hotspot versus a proven suburb? If I’m an investor do I buy in a suburb that hasn’t yet boomed or do I buy in a proven suburb? At what point does the undervalued suburb become proven?

35:37

3

What is your view on townhouses?

37:26

4

Which is a better strategy? Buy an undervalued suburb and renovate now or buy in say North Carlton and plan to renovate in a few years’ time?

38:40

5

How do you about expanding your property portfolio when investing in the particular areas you’ve talked about today, which have high capital growth but not necessarily high yield so will likely be negatively geared? What if you’re asset rich but cash flow poor? How do you buy property?

40:00

6

Where can I purchase a good investment house for around $750,000? Should you spend the money on a house or apartment?

42:30

7

What are your thoughts on the following suburbs/areas? Are they suitable for long term investment/undervalued?

  • Williamstown and Footscray
  • Bayside – Elwood Hampton and Sandringham
  • North East Suburb
  • Elsternwick or East St Kilda
  • Melbourne West – Diggers Rest
  • Geelong
  • Frankston

44:50

8

What effect might a general ‘burst’ of house pricing have on these identified areas over the short-medium term?

49:24

9

Dockland apartments vs. CBD apartments?

51:09

10

Are there opportunities in house/land packages or existing free-standing homes in these undervalued suburbs?

51:49

11

Is there any advantage/disadvantage in having a property owned by a company so that the company may become an investment vehicle?

54:05