Melbourne Suburbs that average the highest house price discounts.

According to this article –

http://bit.ly/vBYcd4

You can make an offer for a house in Clayton, Victoria that is 12.1% below the asking price and expect the vendor to accept. Like most averages the range can be large… the way the economy is going around the world and more recently in China, there’s a pretty good chance Australia’s turn for the worse is imminently upon us. Base on that theory and if I was in the market for a house in Clayton I would be offering bids 20% below. Its game on.

The Clayton advantage for investors is its proximity to Monash University. This is because of the influx of overseas students studying at Monash. Being close to the railway station and shops would be an added benefit. However with the downturn in overseas student numbers, that advantage is being undermined. According to this ABC article, Monash has seen a 30% decrease in the number of students enrolling in English languages classes. Typically half of those end up as full fee paying students. Such a decline would visibly impact the Clayton’s rental market. Less demand, higher supply, rents should go down, house prices will go down with it.

Currently on realestate.com.au the average 25-30 year old 2 bedder in Clayton is about 370K, some go as low as 330K. If you can find one with a motivated seller, I’d make an offer of 300K on a 370K house, and I reckon you just might get it. If you are like me and believe we are going to experience GFC 2.0, I’d wait for house prices to fall a further 20% before making another offer 20% below that. Thus, wait for the average price to hit 300K and make an offer of 240K. Seems far fetched doesn’t it? but it wasn’t that long ago when anyone who thought houses could fall would be called crazy.

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About 1D

I've been fermenting in Canberra OZ for awhile now... Like all public servants I'm battling the cubicle nation... This blog will share my personal journey in which I am preparing to get out of cubicle jail... Time to be your own architect...
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