Buyers can make significant savings buying one stop down the line

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Sep 20, 2016

Buyers can make significant savings buying one stop down the line

Buying a property one step further along the train line can save buyers as much as $250,000, according to the REIV.

Image: Ray White.

This property at 10 Brownlow Court, Lara sold earlier this month for $404,000.
Image: PRD Nationwide.

This property at 52 McLeans Road, Little River, which is only one stop closer to Melbourne that Lara (see previous image) on the train line, sold for $615,000.

Homebuyers can save more than $250,000 by purchasing a property one stop further along the train line in regional areas of Victoria, according to new research by Real Estate Institute of Victoria.

VLine’s South Western line recorded one of the largest median house price differences between neighbouring stations. Little River (median house price $646,000) is just 11kms closer to Melbourne than Lara ($390,000) – yet commuters can pocket a saving of up to a quarter of a million by heading one stop further down the line.

Savings of $225,500 could also be made by purchasing a home in Seymour, rather than Tallarook – the previous station on VLine’s North Eastern service.

On the Western line, Melbourne’s outskirts also offered value, with buyers able to save themselves $218,000 by purchasing in Melton, rather than nearby Rockbank.

Meanwhile, savings were also evident on the Northern line with a $168,000 difference in the median house price between Epsom ($338,500) and the following station Elmore ($170,000).

A price differences of more than $140,000 was recorded on VLine’s Eastern service between Bunyip ($455,750) and Longwarry ($313,000).

Homebuyers looking to purchase in a regional centre were also able to save $136,000 by purchasing one stop further along the train line in South Geelong, rather than Geelong.

REIV CEO Geoff White said buyers are increasingly looking for value in regional Victoria.

“New growth areas provide buyers with the opportunity to enter the property market at a more affordable rate, yet still on a main VLine service into Melbourne,” he said.

“Many of these areas, especially towns within commuting distance of the city, are also recording solid annual price increases and are poised for future growth.”

“Investment and infrastructure initiatives by both the state and federal government are likely to deliver further capital growth in these areas,” he said.