Latest news with #CamMcLellan
News.com.au
04-08-2025
- Business
- News.com.au
Property experts warns of Vic growth killers
Investors chasing cheap houses in regional Victoria could be buying into growth traps, with leading experts warning soaring prices in towns like Mildura and Shepparton may not last. PropTrack data reveals Mildura was the busiest regional market in the state over the past financial year, with 706 homes changing hands. Shepparton was next at 632, then Traralgon, 530, Warrnambool, 473, and Armstrong Creek, 455. RELATED: Surf mad Damien Oliver lists Jan Juc beach shack Shock way Aus home cost hike could lock in rate cut High sales volumes have sparked speculation investor activity is returning to the regions, but experts are urging buyers to tread carefully. OpenCorp chief executive Cam McLellan said regional towns had been distorted by lifestyle demand. 'That's not investment grade growth it's emotional overshooting,' Mr McLellan said. 'Price growth is short lived as long term demand doesn't pressure supply levels.' He said he advises his clients to not invest in regional Victorian markets. 'Selling a metro property with limited new land and strong local jobs to buy into a regional area with cheap land and weaker demand isn't a trade-up, it's a trade-off,' Mr McLellan said. 'Most regional towns have an oversupply of land, that's a long-term growth killer. 'Prices might spike temporarily from lifestyle demand or affordability pressures, but once new land is released or migration slows, growth flattens out.' Mortgage Choice broker Rhys Elmi said while buyer interest was soaring across Victoria, regional investment was becoming harder to justify. Mr Elmi said while some regional buyers were driven by affordability or lifestyle changes, most first-home buyers and investors still aimed to secure houses rather than units, even if it meant compromising on location. 'There needs to be a bit of a mindset shift,' he said. 'Start small, build equity, and turn that first property into an investment later. 'That's how you build long-term wealth.' Regional Victoria Top 20 Suburbs By Sales Volumes Suburb Property Type Number sold 12 months Mildura House 706 Shepparton House 632 Traralgon House 530 Warrnambool House 473 Armstrong Creek House 455 Warragul House 401 Morwell House 370 Wodonga House 363 Lara House 357 Wangaratta House 347 Torquay House 339 Drouin House 330 Horsham House 303 Ocean Grove House 293 Alfredton House 292 Corio House 291 Highton House 276 Sebastopol House 266 Sale House 266 Mount Duneed House 240
News.com.au
23-06-2025
- Business
- News.com.au
How rentvesting helps young buyers enter property market
Millennials and Zoomers are tearing up the homeownership playbook, ditching the quarter-acre block in favour of something smarter — and far more flexible. Rentvesting, once a fringe strategy, is now going mainstream as more first-home buyers realise they can't afford to live where they want to buy. M R Advocacy director and buyers advocate Madeleine Roberts said the shift was being driven by affordability pressures and a sharper understanding of wealth-building. 'There's been a clear uptick in younger buyers choosing rentvesting, and it's largely out of necessity,' Ms Roberts said. 'Most entry-level buyers are priced out of the areas they actually want to live inm suburbs where the median house price is well above $1m.' Instead, they're renting in lifestyle-rich areas and buying investment properties in suburbs with better growth potential. 'They're arming themselves with the right information and realising rentvesting is a smart way to build wealth without giving up lifestyle,' she said. The M R Advocacy director said the strategy is especially popular among clients using self-managed super funds (SMSFs), with some choosing to buy property inside super for long-term gain. 'A lot of people are drawn to the idea of being in control of their financial destiny rather than relying on a fund manager,' Ms Roberts said. 'But the risks are real if you don't have the right strategy. 'Whether it's property or super, you can't just wing it.' OpenCorp chief executive Cam McLellan said the most successful investors were combining strategies and staying flexible. 'You don't have to choose super or property,' Mr McLellan said. 'Smart investors are doing both. That's how you future-proof, multiple levers working together,' Mr McLellan said. Mr McLellan said younger buyers often underestimated their potential. 'Too many buyers chase the wrong thing, it's not about the biggest house, it's about buying the best-performing asset and using your cashflow wisely.' Super Members Council chief executive Misha Schubert said super shouldn't be overlooked in long-term plans. 'Super is one of the most powerful long-term tools Australians have, but it's underused and under-understood by younger people,' Ms Schubert said. She added that super could complement newer strategies like rentvesting. 'Rentvesting shows how young Australians are finding smart ways to balance lifestyle and wealth creation. 'Super can play a part in that too, especially with voluntary contributions and tax-effective savings.' Even as buyers rewrite the rules Ms Roberts said flexibility, information and strategy are the new pillars of the new Great Australian Dream. 'We're heading in that direction,' Ms Roberts said. 'Property is more expensive, but people still want to participate in the market and rentvesting gives them a way to do that without giving up on lifestyle.' 'It's adaptable, it's flexible, and it's increasingly popular with younger Australians trying to get ahead.'
News.com.au
13-06-2025
- Business
- News.com.au
Melbourne suburbs where units save buyers over $1m
Homebuyers can save more than $1m to secure a home in some of Melbourne's most exclusive suburbs if they're willing to give up a backyard. A growing number of buyers are ditching the dream of buying a house to stay in the postcodes they love, with new data revealing just how wide the gap between units and houses has become in these hot spots. New Ray White analysis shows units remain relatively affordable in several of Melbourne's most expensive suburbs, with house to unit median price gaps up to $1.1m in areas such as Hawthorn and Brighton. OpenCorp chief executive Cam McLellan said buyers were becoming more strategic, particularly in high-demand suburbs such as Richmond, East Melbourne and St Kilda East. 'In suburbs like Richmond, Hawthorn and St Kilda East, buyers can save more than $1m by choosing a unit over a house,' Mr McLellan said. 'Stretching for a house only makes sense if it doesn't lead to mortgage stress or missing out on better long-term growth.' But while many buyers were choosing rentvesting as a property strategy and buying a house in an outer suburb while enjoying their inner city lifestyle, they could be better off in the long term purchasing a quality unit, Mr McLellan said. 'Rentvesting gives people lifestyle now and financial security later,' he said. 'It's not about the product, it's about whether the numbers stack up. 'We run detailed cashflow and growth modelling because a quality unit in a proven suburb often outperforms a low-grade house on the fringe.' Ni Advocacy director and buyers' advocate Kevin Ni said the rise in unit interest wasn't just driven by price, it was also about value and livability, especially in older-style buildings. 'We're seeing people avoid the off-the-plan high-rises and instead go for character-filled, boutique blocks with more space and better capital growth,' Mr Ni said. 'Those older-style two-bed units often have bigger living areas, thicker walls, and a stronger owner-occupier presence — which can really help long-term value.' Suburbs like Elwood, Malvern East, Hawthorn, Kew, and Armadale are among those older apartments in low-rise blocks, which can be larger, more open, are in demand, he said. Mr Ni said the house-versus-unit trade-off had become more pronounced in recent years, particularly for young couples determined to live near the city. 'They're prepared to compromise on space to get into locations like Richmond or Hawthorn,' he said. 'For $750,000, you can still buy a two-bedroom apartment in a boutique block near cafes, parks and transport, and buyers are prioritising that.' The Ni Advocacy director said many buyers were now actively avoiding high-rise developments, instead focusing on older-style or boutique blocks with better layouts, more space and long-term value. 'Buyers are far more educated now – they're looking for scarcity and liveability, not cookie-cutter apartments in oversupplied towers,' Mr Ni said. In growth areas such as Doveton, Melton and Hampton Park East, where the house-unit price gap is under $120,000, Mr Ni said some were opting to stretch their budget to secure a house, often with help from parents. 'We've seen people spend six months stuck in limbo because they wouldn't budge on their dream suburb,' he said. 'The advice is be realistic and flexible. Compromise is part of the process now.' Ray White chief economist Nerida Conisbee said the appeal of units was only set to grow, particularly as houses in blue-chip postcodes remained out of reach especially for first-home buyers. 'People have been priced out of houses in suburbs like Hawthorn for a long time, but units remain accessible,' Ms Conisbee said. 'It's a trade-off: do I want a big backyard, or am I happy with a smaller home in a better location?' Ms Conisbee said Australia was undergoing a slow cultural shift, from suburban sprawl to inner-city density, but was still coming to terms with the change. 'We still love the idea of having a big house and a lot of land,' she said. 'The reality is household sizes are shrinking and it's much cheaper from an infrastructure perspective to increase density. 'That means more people will need to embrace apartment living, especially if they want to stay in high-demand suburbs.' Ms Conisbee said rising construction costs was helping to improve values for quality units. 'It's becoming harder and more expensive to build new apartments, which is why quality units in desirable locations are actually holding their value, or even outperforming.' Top 10 Melbourne suburbs with the largest house to unit price gaps: Suburb Median House Price Median Unit Price Price Gap Toorak $3,994,669 $1,049,771 $2,944,898 East Melbourne $3,203,726 $875,926 $2,327,800 South Yarra $3,060,336 $833,997 $2,226,339 Brighton $3,123,574 $1,194,140 $1,929,434 Hawthorn $2,488,921 $565,103 $1,923,818 Armadale $2,639,241 $737,493 $1,901,748 Malvern $2,609,420 $726,665 $1,882,755 Kew $2,806,515 $928,098 $1,878,417 Camberwell $2,716,661 $1,005,789 $1,710,872 Albert Park $2,651,151 $961,470 $1,689,681 Source: Ray White Top 10 Melbourne suburbs with the smallest house to unit price gaps: Suburb House Price ($) Unit Price ($) Gap ($) Doveton $574,931 $486,204 $88,727 Melton $523,513 $427,548 $95,965 Melton South $527,685 $427,391 $100,294 Brookfield $564,721 $452,631 $112,090 Kurunjang $556,402 $443,254 $113,148 Hampton Park $622,315 $496,640 $125,675 Sunshine North $704,905 $576,338 $128,567 St Albans $685,020 $551,191 $133,829 Wyndham Vale $639,501 $501,095 $138,406 Harkness $598,723 $454,703 $144,020
