When deciding to purchase a property, it is important to realise that not all real estate is equal. Although it takes time and effort liaising with property experts in your investment area of choice and seeking out knowledge, purchasing ‘blue chip’ well-researched property means that your investment will show terrific capital growth in the long term. There are a number of factors which validate a suburb as blue chip, which include a property’s proximity to schools, public transport, and the suburb’s overall closeness to the city and employment opportunity. Today’s Chisholm and Gamon blog addresses the topic of blue chip property and suburbs in Melbourne, helping to ensure you have all the necessary information to choose your next property wisely.

It’s no secret that in the past two years, opportunities to purchase exceptional property in Melbourne have increased for investors and owner-occupiers. Since the heady market highs of 2009 and 2010, median house prices have decreased nationally and property experts believe now is the time to take the ‘investment plunge’ before the market begins to trend sharply upwards again. The areas offering investors greatest potential are located in blue chip locations and are typified as ‘A Grade’. An ‘A Grade’ property doesn’t need to be immediately renovated or repaired by a new owner, and is located in areas with high median sales prices and strong demand from purchasers and tenants. If you have upwards of $600,000 to spend, an inner city two bedroom property could be within your grasp. While many investors follow the old adage – ‘don’t put all your eggs in the one basket’-  preferring instead to disperse their investment budgets across several B or C grade properties – experts advise against this approach. Many B and C grade properties are attracting insufficient interest to sell, re-iterating that location is most relevant when it comes to long term property investment. A large, brand-new family residence in an outer ring of any capital city is worth less than a liveable, retro property in an inner-city locale – and that is due to a comparable lack of services (transport, schools, hospitals, shopping amenities, parklands). With less desire and market competition from purchasers and tenants, a property’s value on the outskirts of a metropolis is likely to stay static or flounder.

More locally, blue chip, A Grade homes are located in premium real estate locations around the Melbourne CBD. Port Melbourne, South Melbourne, Brighton, Elwood, Albert Park and surrounding suburbs are all prime examples of blue chip areas south of the city which have retained their value and grown despite decades of market shifts. These suburbs fit the bill for families and singles alike, offering proximity to the city, top schools and an abundance of transport options. Furthermore, if it is land you are after, Black Rock, Hampton, Sandringham and Beaumaris are good value in this current market.

Ideally, one should be searching for properties off main roads with generous floor plans and off street parking. It’s all about the details when looking at blue chip properties, as even buying on the ‘right’ street is something which can boost the value and market desirability of a home. Your return on investment and capital growth will be stronger in blue chip locations where high buyer demand pushes up the price per square meter. You may need to pay a higher amount for your blue chip property initially – but the rewards will reveal themselves as year-on-year, your investment continues to grow.

Contact Chisholm & Gamon to meet with one of our agents, all local property experts on blue chip suburbs we are pleased to service.