Investment property Melbourne is an attractive prospect for property investors, thanks to favourable demand-supply dynamics, supportive economic factors and ongoing urban developments. However, the Melbourne market can be a complex place to get started, and you’ll want to research your options thoroughly before making any investments. It’s important to work with experienced buyer’s agents and property investment advisors to ensure you understand the metrics and financial implications of your investment decisions.

When choosing an investment property, you need to consider its initial cost as well as ongoing maintenance costs. Look for properties that offer a good rental yield (the return on your investment based on rental income) balanced against the costs of ownership including mortgage repayments, strata fees and council rates. You’ll also need to account for expenses like insurance and maintenance.

Investment Property in Melbourne: Top Areas and Market Insights

Houses generally tend to perform better as an investment option than apartments. They’re more likely to appreciate in value due to their size and location. For example, homes located in desirable suburbs that are close to public transport, schools, and amenities are more likely to appeal to tenants. In addition, houses are typically less expensive to buy than apartments and can have greater capital growth potential.

The performance of the Australian economy plays a big role in property prices. A strong economy can lead to more jobs and higher disposable income, driving property demand and increasing values. Likewise, a slow economy can dampen demand and lead to lower property prices.