Taking the long term view of Melbourne property investment

The REIV is advising buyers to look beyond the Melbourne CBD and inner suburbs for their first property purchase.


REIV CEO Geoff White said buyers are increasingly looking for value in regional Victoria.



New growth areas provide buyers with the opportunity to enter the property market at a more affordable rate, yet still on a main VLine service into Melbourne.”



Many of these areas, especially towns within commuting distance of the city, are also recording solid annual price increases and are poised for future growth.”


Investment and infrastructure initiatives by both the state and federal government are likely to deliver further capital growth in these areas.”


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How To Avoid Buying A 'Dud'

It's the last thing anyone wants - you purchase your investment property, and nobody wants it, leaving you out of pocket and forced to reduce your expectations.

You bought a dud.

While there's never a guarantee with any form of investment, there are some steps to take to maximise your potential and reduce the chance of ending up with the best house on the worst street.


First, don't just look at the house, or the street, in isolation.

"Nice street, the lawns are mown, and I can see kids playing."

Drive around the neighbourhood with a critical eye. Look at the quality of houses, the types cars in driveways and evaluate the surrounding area, comparing it to the street you're looking at. Many investors have been caught out buying in the best street, but in a bad area.


Next, don't look at potential if you aren't going to do any immediate improvements.

Tenants don't care about what you're going to do to the property in a few years time, and they certainly aren't interested in potential. If you're looking for a house or apartment with your ideal tenant in mind, be sure to make all the required improvements up front. If you're not going to make any changes for the short term, then you're buying the property for what it is - so be sure to judge it's potential based on that.


Beauty is in the eye of the beholder; and never has this old saying held truer than in the case of property investment.

Where you see a pool and great outdoor living area, parents may see a poorly fenced drowning hazard. Likewise, with granny flats separate to the house; technically they are another bedroom, but it's unlikely anyone's going to put their six-year-old in there.

Consider practical realities, over what's 'unique' or 'interesting.' Again, you tenants aren't purchasing this property and will be thinking more of day-to-day living, than what makes the house stand out.


But beauty does matter. Your tenants may not be buying the house, but they'll still be inviting their friends and family around for barbeques, hosting dinners and having coffee with the neighbours. Nobody wants to live in an unattractive house, and many duds are created through potential tenants driving straight past, or not clicking through on a rental website. Regardless of the market, a house with good street appeal is likely to garner more interest than one which is less appealing. Remember, that moving into a house - even a rental - is an emotional time, and your tenants want to feel that they have more than a roof over their head. If their home is a source of pride, they'll care for it, rent it for longer and do their best to make you aware of any issues.


While nobody wants a dud, sometimes they are hiding in plain sight - and are often disguised as a bargain. Keep in mind that there's more to investment than finding the worst house on the best street, and you'll be able to approach potential duds with your eyes open, and perhaps even turn them around.


Jeff Grotowski is the CEO of Accrue Real Estate, which offers buyers a simple and effective pathway to purchasing investment property in Melbourne, including intelligence mechanisms and market-led advice, predicated on years of experience.

They also offer the opportunity to tap into the ‘underground property market – those properties that aren’t passed to agents and don’t appear on mainstream websites.






Black Rock little hidden Melbourne real estate gem

Jeff Grochowski from Accrue Real Estate discusses the lifestyle and property investment potential of Black Rock.
Brighton is probably the most well known and affluent suburb on the shores of Port Phillip Bay. It is a really good place to live. It is close to the city. The beaches are popular for locals and visitors alike.

Hampton is fast gathering a reputation as the next generation's trophy property location and it is now starting to mirror Brighton in terms of lifestyle and in some cases, property value. Nearby, Black Rock offers lower prices in an area undergoing significant urban revitalisation. Access to a very interesting beach and foreshore recreation area have made more and more investors and home seekers look at buying into the suburb.

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The Right Advice From The Right People

In our last article, we explored some myths that are still prevalent regarding property investment. Today, we're going to explore in more detail where you can get the best information, and more importantly what sort of information you should be looking for.

As we mentioned last time – gaining an understanding of property investment is challenging, not because of the lack of information, but because there is too much misinformation.

Let's talk about what you need to know, and the first thing is getting clear on your plan. You see, there is no such thing as a "good" property or a "bad" property, all have their advantages and disadvantages, and while some may be good for nothing other than storing equipment, that makes them useful to someone. So, the first step is to determine exactly what you want to achieve, before you even begin to consider how you are going to achieve it.  You wouldn't be happy if your doctor prescribed you medication without first evaluating your symptoms, and property is the same – there is no magic pill, and each diagnosis should be based on individual requirements.

Once you have a strategy in place, it's time to research. You'll need to know the right areas, types of houses, costs and so on and this can seem incredibly daunting. The trick is, to take each opportunity based on its merits, and have good advisers around you – but where do you go for that advice?


"Tell me what you've done."


Always ask a potential advisor what they have done the past and why you should listen to them. If you are looking online for input, be sure to Google the person and ensure they are a good fit.


Impartial third parties


 Impartial third parties, such as government entities and online statistics bureaus, are a great source of relevant information. However, hard figures should not be used in isolation, and there is often hidden opportunity behind the numbers. Importantly, if someone is offering their advice for free as an impartial third party, be sure to ask what they have done, and evaluate their suitability.


"What happens if?"


 The last thing you want, is to end up in a situation where you are forced to liquidate your property because you didn't have contingencies or a strategy for dealing with unfavorable circumstances. Good accountants and financial advisers with relevant property experience will offer you advice based on the numbers as week as the potential downsides.  When going into any investment, you should be aware of both the potential opportunities and have structures in place to deal with the unexpected.


Without a strategy, the investment journey is encumbered from the start. But with a robust plan in place, and contingencies should something go wrong, you are setting yourself up for success.

Likewise, having a strategy for the type of advice you will take on board and from whom is crucial to avoid misinformation or well-intentioned but incorrect intelligence.


Jeff Grochowski is the CEO of Accrue Real Estate, which offers buyers a simple and effective pathway to purchasing investment property in Melbourne, including intelligence mechanisms and market-led advice, predicated on years of experience.

They also offer the opportunity to tap into the ‘underground property market – those properties that aren’t passed to agents and don’t appear on mainstream websites.




Apartments vs. Houses

'Land is the only things worth money.'

'Apartments don't appreciate in value.'
'Stick with standard bricks and mortar.'

All of these statements have an element of truth to them - but do they apply to you?

This decision can of course, be influenced by budget, but there are various things to consider before you decide on a particular strategy, thereby cutting off all other options. Apartments can present incredible opportunities to a savvy investor, as long as variables are taken into account and it fits with the overall investment strategy.

Luxury apartments for example, can attract high-end residents, who pay high body corporate fees in order to ensure the ongoing quality of their home. In fact, when presented with high ongoing costs in the form of body corporate fees, many investors are put off – but if fees are low, the body corporate can be limited in it's ability to maintain the development to a high standard.

This is not to say that there aren't great opportunities at the lower end of the market, but cutting of options and focusing on a 'type' of residence - apartments or houses - will limit the pool of options available. Remember, as an investor, it's unlikely that you're going to end up living in the home, so don't let your own bias, which may not be in line with those of the market, dictate what shouldn't be an emotionally led decision.

Just because you would never dream of living in an apartment, doesn't mean that there aren't opportunities for you to profit from other people wanting to; there are many people who don't share your lifestyle or ambitions, and your financial goals should take precedence. Thinking like an investor involves stepping into other people's shoes, and removing your own presuppositions about what is 'good' and 'bad.'
When evaluating a property for rental, consider who would likely rent it, what would they look for that could increase their interest – and rental payments – and why they would choose to stay long term.

If your goals are more short-term, take the same approach, looking at the property through the eyes of your potential buyer, rather than based on your own opinions.

Being an astute investor involves understanding the demographics of the people you will be renting or selling to. The hardest part is not understanding what different types of people think – you probably know that already – but removing your own thoughts and opinions from the process. When purchasing a high ticket item, it can seem counterintuitive to buy something that you don't necessarily love – which has likely been your process for most of your life – and instead investing in something that fits better with someone else. However, unless you are planning on working with people exactly like you, which will severely limit your investment options, understanding not only areas, rental rates and average sale prices, but also the demographics of people within those areas is mandatory for achieving the best results from an investment standpoint.


Jeff Grochowski is the CEO of Accrue Real Estate, which offers buyers a simple and effective pathway to purchasing investment property in Melbourne, including intelligence mechanisms and market-led advice, predicated on years of experience.

They also offer the opportunity to tap into the ‘underground property market – those properties that aren’t passed to agents and don’t appear on mainstream websites.






Melbourne is a difficult city to invest in; there are many 'up and coming' areas that are often perceived as opportunities to 'get in early,' and old and established areas where you can get the 'worst house on the best street.'

The thing is, ideal opportunities don't choose to appear at the most opportune moments.



One of the most frustrating things about investing in property, is not the shortage of information - but the plethora of misinformation.

Those seeking to learn online are confronted with numerous experts, gurus and thought leaders who confidently speak of having the secret to success. Again, the issue isn't that they don't have good information - it's that the relevant advice is lost in the noise.



For first-time landlords, your first investment and first tenants can create uncertainty and fear.

Have you done everything you can to ensure you have the right tenant? Have you purchased the right house for the area? What are your obligations?

And of course the old favourite - what happens if they destroy the place? This confusion comes from buying a house and not living in it. If you've never done that before and your natural inclination is to get into the place, make yourself comfortable and create something that's a bit more 'you'.

This brings us to the first tip for new landlords.





People looking to buy investment property in Melbourne have an opportunity to seek expert advice on what rental properties are on the market.

The federal Treasurer, Scott Morrison said today, that 30% of Australians rent their homes. That is a huge number people who will at some time look to find a new investment property to rent.

Jeff Grochowski provides a service to help to people who have made up their mind to hunt for a new apartment or unit to accommodate those 7,200,000 renters.

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In Melbourne and Sydney, investment property is in strong demand. Fueled by immigration, low interest rates and the poor performance of stocks and shares, property is the preferred investment vehicle for Australians.

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New REIV data shows there is a significant difference in the median house price of multiple adjacent suburbs across the state, despite similar characteristics and amenities.

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We often read the property investment success stories in the media but there are mistakes that people who are looking to buy a residential property as an investment can make. What strategies do successful property owners use to accrue real estate?

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Melbourne 1 August 2015. How can people get a better deal when buying real estate in Melbourne?

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Melbourne is a fast growing capital city in Australia. There are countless life style and investment options for property buyers.

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With an expert in property management on your side, your investment property will be in safe hands.

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Getting the right Home and Building Insurance can be the difference between being properly covered or barley covered at all.

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In a step that's rare in the real estate industry, all Accrue Real Estate clients are referred to independent experts before considering purchasing
real estate or putting in a written offer to purchase property.

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It is important to get specialised landlord insurance, because general home and contents insurance will not cover some of the unique risks that come with leasing out your house.

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In simple terms, the Auction Clearance Rate (ACR) indicates how many homes have sold at auction across a state on any given weekend.

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You should always take interest rates into account when choosing a home loan or mortgage. Be wary that lenders may attract consumers with low rates for the first few term of a loan, but may charge much higher rates thereafter.

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Here's your opportunity to learn from independent experts before making any permanent or potentially costly property purchasing decisions.

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Accrue can help

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