What Makes this Northcote Villa an Investor’s Dream?

Inside 3/2 Bank Street, Northcote
Source: Love Real Estate

This Saturday just gone I bid on a great villa unit in Northcote.

This property ticked all of the ‘ideal investment’ boxes for me and I have to admit, I was quite excited when my young first home buyer client brought this property to my desk to review, appraise and secure.

Many home buyers who are starting out like to think that the property they have targeted is not only going to serve as a great short-term home, but will also bode well as an investment property once their needs change and they upgrade.

“This property ticked all of the ‘ideal investment’ boxes for me…”

In most cases, the properties that they select as their first home don’t meet all investment grade criteria and I find myself stepping in to remind them that their emotional selection is not an ideal investment selection.

But in this case, it was, on every measure. The solid villa unit was one of just four, in a boutique little block on a street mostly consisting of attractive houses.

What Made the Property Perfect

Featuring two good sized bedrooms, a nicely presented interior, a courtyard on 99 year leasehold, a car park on title, a separate toilet and provision for a laundry, the only thing that wasn’t honest about this property was the quote range.

The key ingredient above all else was the location. This villa was tucked away in a tree-lined street only 500 metres from Fairfield Station and shops. The High Street shops and all that downtown Northcote has to offer were well within walking distance too.

The street outside 3/2 Bank Street, Northcote

The benefits for this address were extensive – to start with, it was 6km from the city, and nearby trains, trams and buses travelled just about everywhere around town. It was also close to the Yarra River and boathouses, Northland, the 20km Merri Creek Bike Trails, and the cafes, bars and dining options along Station Street in Fairfield.

The Auction Warm Up

We had our pre-auction coffee at Alfios in Fairfield and their blogged-about coffee didn’t disappoint. We set our limit, discussed the strategy and headed off to bid.

With a mobile barrista on site, Love Real Estate dared to entice as many people as possible!

The bidders were all in the same age group (not surprisingly). This property was screaming out that it was an affordable entry into the inner urban market, perfect for anyone who valued the land on leasehold and the privacy and boutique nature of the block.

When compared to a 2BR apartment in a larger block, for an extra $50,000 the owner could have a villa on its own title without neighbours above or below.

How The Auction Kicked Off

The bidding was cautious at the start and the auctioneer had to work the crowd hard to get us to bid. Despite the quote range of $370-395K, she declared it on the market at $440,000 and just as I had predicted with my estimated appraisal of $450-460K, a final bid of $458,000 secured the property.

Sales and growth in Northcote
Source: Pricefinder

The Final Result

Taking into account the recent villa unit sales in the area, the market sentiment right now and the superb attributes this fabulous location offered, I felt that this property was great buying and it will continue to perform well into the future.

And due to a burgeoning popularity among young cashed up professionals for Northcote and neighbouring suburbs such as Fairfield, Thornbury and Brunswick East, the inner north east corner of our city is destined for big things.

For more information about Northcote, read our suburb profile here

Points of Interest in Northcote, Postcode 3070

Northcote Plaza
Northcote High School
Northcote Primary School
Northcote Social Club
Darebin City Council