What Can Change a Suburb for Better?…

Often investors will look to changes in an effort to find that special something, that little edge that can make the difference between a sound suburb and a suburb about to boom. From infrastructure changes to planning updates, new developments to exciting tourist magnets. A change of scene and the presence of new and cashed-up buyers can make an enormous difference to an otherwise sleepy spot.

So what could be in store for Alphington?

Our latest acquisition was a great 1970’s two bedroom apartment in Fulham Road was exciting for our lovely clients; and for more than one reason.  We sourced the property off-market for them and that is often exciting for buyers, as the secrecy around the listing and the privately held inspections highlight the fact that competition is not prevalent and fair buying opportunity may well be likely.

This well-kept apartment had a lot going for it; presenting just eight in the block,selling with a secure tenancy in place at a gross rental yield of 4.1%, and offering an already-renovated interior meant that our clients could look forward to an easy road with what we term a ‘set-and-forget’ asset.

This very convenient spot just 7km from the CBD and near the Yarra River, close to train station and vibrant cafes in the various local villages made it an easy decision for us to shortlist.

Yet as we got closer to contract-signing, it was some recent changes at the nearby formerly owned Amcor Paper Mill that made it quite compelling.

Amcor sold the site recently for $120K to a consortium who recently obtained planning permits for a ‘mini city’ development. The site is said to include up to 1500 dwellings consisting of a mixture of townhouses and apartments and is noted for the park lands, environmental planning controls and overall desirability. The old site which has been plagued in its recent past with fines for the chemical spills into the nearby Yarra has been regarded by locals as an eyesore. The recent announcements have generally been met with positivity and the implication for the entire area is that the proposed development will be a draw card for a cashed up demographic who values this prized inner-ring location.

Some of the positives for our happy clients include what we refer to as a ‘drag-up’ effect for their property value.

The nearby newer units and townhouses will attract strong prices based on newness, developer margins and a pent-up demand with the help of some clever marketing. Our $455,000 will pale in comparison to the prices that will be achieved at the Paper Mill site.

The area will continue to adjust to the newcomers and the numbers of ‘lifestyle’ shops, cafes and attractions will increase as the area caters to this new, cashed-up crowd.

To read more about the development click here.

Photos sourced from REA and Herald Sun