02
January

Melbourne Investment Property

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What are the three main points to consider when buying investment property in Melbourne? How much rent the property can achieve, how much capital growth the property is likely to garner and the costs and fees incurred to secure and maintain the property?

Rental return and the potential for capital growth from your property investment are vital considerations when looking at the property market. It is advisable to first research which suburbs in Melbourne are showing strong price growth. When you have settled on an affordable price range and how much you can comfortably borrow, keeping in mind bank and property fees/costs and future rises in interest rates, begin looking at the areas which have risen most in the last twelve months-are they inner city areas or outer suburbs?

Most experts suggest buying in suburbs where you would live if given the opportunity. Put yourself in the place of your prospective tenant when choosing possible Melbourne rental investment properties and keep in mind the old adage ‘location, location, location’ which is still as relevant as ever. Access to shops, schools, public transport, medical clinics etc will be strong selling points for future tenants of your property (Melbourne Investment Property).

What about the needs of different types of investment properties- for example, apartments versus houses? When buying an apartment it is important to consider body corporate fees as well as the rate of vacancy and tenancy in the apartment block. Are there more owner-occupiers than tenants? The more owners the more likely the block will be well-maintained. If there are more tenants, there is a greater chance of tenant turn-over and the possibility that other vacant apartments in the block will compete with you for future renters.

Also remember that when considering houses as an investment opportunity to factor in maintenance of the property on a regular basis, particularly for older properties as well as costs such as council rates etc.