From Melbourne to Perth: How I helped Kris and Ves avoid a six-figure mistake

WHEN I first spoke with Kris and Ves, their goal was simple: buy an investment property close to home in Melbourne’s northern suburbs. They wanted to stay within a few postcodes of where they lived, an area they knew well and felt comfortable with.

But when we sat down together and started looking at the numbers, it became clear that convenience and performance weren’t lining up. The data I presented told varying stories for different corners of the country. Melbourne’s local market had already shown signs of slowing, and from a cycle perspective, it wasn’t the right time to buy there.

Through our process, I helped Kris and Ves understand how property markets move in cycles, and how identifying those cycles can make all the difference between waiting years for growth or positioning for it early. By analysing the research and the fundamentals, I showed them that Perth was entering a very different phase: strong affordability, rising migration, tightening vacancy rates and increasing infrastructure investment, all indicators of a market poised for growth.

In late 2021, Kris and Ves acted on my advice and I sourced a quality property in Perth for them, supported by the right fundamentals and growth drivers. What’s happened since then tells an incredible story. Over the following three years, Melbourne saw three consecutive years of negative growth at circa -7 per cent, -6 per cent, and -2 per cent, while Perth achieved double-digit growth each year, around 12 per cent, 18 per cent and 22 per cent respectively.

That decision, to invest based on research rather than postcode loyalty, has paid off in a big way. The property has grown by over $250,000, is delivering strong rental income, and they are now in a position to purchase their next investment which is much sooner than they expected. In dollar terms, their decision to buy in Perth instead of Melbourne has delivered a difference of nearly $350,000 considering Melbourne’s negative growth.

Kris and Ves said: “Shane’s guidance and advice made us over $250K on our first investment. The result has set us up to go again now, but if we tried to do it on our own, we’d be still sitting in negative growth. Fantastic service from someone we know genuinely has our back”

At 8th House Advisory, that’s what we do. We help clients make smarter, data-backed decisions that deliver bigger, quicker and safer results. By combining research, education and strategy, we help people identify not just where the market is today, but where it’s going next.

Every great result starts with the right guidance. So if you’d like to understand what’s possible for you in today’s market, reach out for a chat.

BY SHANE FORDHAM

Property Investment Advisor,

8th House Advisory, Geelong

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