I’m currently in Melbourne looking for somewhere to live. We’d have hoped to buy but there’s been 2 people through the Australind abode since it was listed, the property market is rooted in WA at the moment. The plan is to keep the house on the market another month, and if it doesn’t sell we’ll rent it out for 6-12 months until the market picks back up.
That means having to rent in Melbourne instead of buying. There’s no polite way of describing the rental market here: it’s fucking insane.
We rocked up to a 3×1 in Richmond that had a $500-550 list price (something around that mark anyway), the online listing looked great and it said spacious. It was so small I wouldn’t let dog live in it. One of the rooms was so small I wouldn’t have been able to stretch my arms out wide without hitting a wall.
And the really not so fun part: there would have been 50, perhaps more people waiting there to inspect the property. Mostly early 20 something girls oddly enough as well.
We cruised past a few other houses in Richmond, Prahran and South Yarra and have now decided that as much as we want to live close to the city, the rental side is just too insane (the buying isn’t great either, but I can live with that side more). Heading out a bit to the burbs in Balwyn, Balwyn North and Surrey Hills, where you get a lot more house for your money rent wise. Hoping to go through a few homes Monday before I fly back to WA Wednesday (first day back at school Tuesday for the boy) and with any luck I’ll sign up for one, get it, and be moved by the end of the month.
Today I remembered why I like the odd drink…and don’t get me started on the traffic 🙂
Wait, so you’re coming from Perth and telling us Melbourne is insane? I would have thought Perth would still take that particular cake.
Right now you’re fighting with the university students coming back for semester 1 looking for acom. Might be good to wait a month or so for the demand to go down a little or go maybe sell yourself to the agents as a better tenant than Gen Y uni students.
as Anthony said – inner city at this time of year is crazy – uni student central around Richmond. Also largely small houses around there. Buying market is even crazier around there but there’s some good value in the burbs (although Balwyn, Balwyn North and Surrey Hills are all in a more expensive zone than the burbs around them too – although some nice hours around there).
It is crazy especially the inner suburbs. I was lucky to get a place in the outer suburbs before the market got even worse. Word of warning. Avoid Friedlaenders Realestate at all costs!!!!!
Molly
Good luck with the search. The other thing you will have to battle is the speed at which places disappear! Once you find something you like be prepared to sign up on the spot or loose it.
I’ve been to Melbourne a few times. I love the city. I lived in Maroochydore for six months.
It took us a month and four syd-melb return flights to find our place in Brunswick. It was un-fun.
Interesting! Given the cost of houses in Melbourne I was always under the impression that rent is low here. Certainly, as a buyer renting out a property, your return on investment is pretty damn low.
But Melbourne is a wonderful city to live in!
I have an apartment in Hawthorn and it has not a single day of vacancy in four years and I have managed to increase the rent slowly over the period. I would suggest looking to the north of Melbourne or the west a little. Balwyn/Surrey Hills is still going to be expensive but are nicer areas and better schools.
Duncan – those areas you’re looking at. Yep, anywhere that close to the City is going to be high.
Have you thought about a little (not much though) further out? Malvern, Hawthorn, Caulfield? Still pricey, imho. Other than that Elwood, Elsternwick is not bad.
The West. Based on your initial areas of interest I don’t think so, other than maybe Kensington and Williamstown.
Good luck with your search – the demand is so far ahead of the supply it’s not funny – I call it a bubble, though the Real Estate agents will spin you anything – in other words: take what any R/E agent tells you with a grain of salt … can you tell I think very little of them 😉
Martin
Hawthorn is too expensive, both to rent and buy, but it’s where the boys school is so we have to be within reasonable distance. Going to look at a place supposedly in Camberwell tomorrow (it’s really in Burwood, but the Eastern part), and there’s a couple of options in Balwyn around the $500 mark…but the problem is nearly always the lack of closeness to transport (with North Balwyn), and she who must be obeyed has to get to the city every day. At least the Cambwell/ Burwood place is on transport…literally, it’s on Toorak Road 🙂
Hey Ducan,
I believe there will be a property in Yarraville that will be available in the next month or so!
😉
Molly
1 word. Migrants. If you were a landlord who could rent out your broken down, dilapidated property out for $200 a room EACH person (meaning 2 to a room) to eager, awaiting international students and migrants from poor countries dying to save a buck whereas no Aussie would even touch that piece of crap with a long stick – you got a problem. It means landlords now can raise the rent to hellish heights knowing its not worth even 1/4 the weekly price.
Its an epidemic and I kid you not.
Last property I visited $280 pw for a 1 bedder had 40 people – all Indians, Filipinos and Vietnamese all jostling to visit it.
The agent said he wasn't accepting any applications but they were all bent over any surface filling out those apps in some dim, distant hope its first come first serve.
1 word. Migrants. If you were a landlord who could rent out your broken down, dilapidated property out for $200 a room EACH person (meaning 2 to a room) to eager, awaiting international students and migrants from poor countries dying to save a buck whereas no Aussie would even touch that piece of crap with a long stick – you got a problem. It means landlords now can raise the rent to hellish heights knowing its not worth even 1/4 the weekly price.
Its an epidemic and I kid you not.
Last property I visited $280 pw for a 1 bedder had 40 people – all Indians, Filipinos and Vietnamese all jostling to visit it.
The agent said he wasn't accepting any applications but they were all bent over any surface filling out those apps in some dim, distant hope its first come first serve.
1 word. Migrants. If you were a landlord who could rent out your broken down, dilapidated property out for $200 a room EACH person (meaning 2 to a room) to eager, awaiting international students and migrants from poor countries dying to save a buck whereas no Aussie would even touch that piece of crap with a long stick – you got a problem. It means landlords now can raise the rent to hellish heights knowing its not worth even 1/4 the weekly price.
Its an epidemic and I kid you not.
Last property I visited $280 pw for a 1 bedder had 40 people – all Indians, Filipinos and Vietnamese all jostling to visit it.
The agent said he wasn't accepting any applications but they were all bent over any surface filling out those apps in some dim, distant hope its first come first serve.
well you'll get used to the market when you rented or sold several houses 🙂