How much will a new investment in a property in Melbourne mean for you?
A new residential investment in Melbourne would add up to around $400,000 in a typical property.
The average price of a property with a new residential residential investment would be around $1.7 million, according to data from the Reserve Bank.
The new residential property is typically sold for $3.6 million.
A $1 million investment could potentially add up towards a new house in Melbourne, or $600,000 over 10 years.
However, it’s unlikely to add up into a home worth more than $2 million, or even a $4 million home, as the cost of the property will be much higher.
It is estimated that around 70 per cent of the value of new residential investments in Australia are currently being built on vacant land, with only around 25 per cent being completed.
That means the new residential infrastructure is unlikely to provide much economic benefit to local communities.
In the first quarter of 2017, about $2.5 billion of the $3 billion of new investment was in properties sold in the first three months of the year.
The majority of the construction was undertaken by builders in New South Wales, Victoria and South Australia.
Property analysts say the vast majority of new property investment is currently in the NSW, Queensland and Western Australia regions.
According to the latest data from Statistics New South Scotland, around 50 per cent or $1 billion of investment in properties is currently completed in the state of Western Australia.
However that figure is down from a peak of 75 per cent in 2014.
Property development has been hit by high unemployment and a severe economic downturn.
Property values have plummeted, with many properties being empty.
The Reserve Bank recently warned of an imminent housing crisis.
The Reserve Bank’s chief economist, Richard Carne, has been calling for the Reserve to act to address the crisis.
In the current environment, many people may be looking to the market for a new home, he said.
The Reserve said it was currently assessing the implications of the current financial market conditions for new residential construction, with the Reserve’s chief executive, Ben Guthrie, saying that the recent low unemployment and low interest rates are “a good thing” for investors.
“But, the Reserve will be looking closely at what the economic conditions are, particularly in relation to house prices and other key indicators, in the months ahead,” Mr Guthrie said.
“If the current market conditions remain in place, it may be prudent to continue to invest in property in Australia.”
Mr Guthrie also said there was a need for stronger mortgage guarantees and more support for investors, and he urged people to exercise caution in deciding whether to take out a mortgage.