Richmond among top 'Not In My Backyard’ suburbs

March 26, 2018 by  

As Melbourne becomes increasingly crowded with the influx of new residents, land is becoming increasingly rare, thus stimulating Melbourne’s emerging apartment market.

According to Sam Saggers from Positive Real Estate, although investing in apartments offers benefits such as a high capital gain for a relatively lower price tag, investors are encouraged to not overlook the advantages of landed properties.

From his professional perspective, the land market in Melbourne is robust and has significant potential for generating wealth. This especially applies to affluent investors who can afford property in the ‘NIMBY’ (Not In My Backyard) suburbs, which are expensive and undersupplied areas where developers usually combine 3-4 expensive houses costing approximately $3m.

According to Saggers, the ‘NIMBY’ concept revolves around affluent people restricting housing supply in their own neighbourhood, thus increasing the values of the area. The cost of homes in these suburbs are very high, therefore only selected buyers can afford to live is such multi-unit dwellings.

Investors interested in purchasing property in ‘NIMBY’ suburbs are encouraged to purchase property in Richmond, Collingwoord, and Fitzroy. Other examples of ‘NIMBY’ suburbs in Melbourne are Armadale, Toorak, and Ivanhoe.

Home buyers or investors who are attracted to the idea of taking part in Melbourne's ‘NIMBY’ trend can get in touch with real estate agents in their suburb of choice for some advice. People who are happy with the professional services from good agents should also share agents’ business cards with family and friends.