When considering property investment in Melbourne there are three main points to consider – 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 (Melbourne Investment Property).
Many real estate experts agree that 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. After 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, start looking at the areas which have risen most in the last twelve month; are they inner or outer suburbs, bayside areas or recent land releases in new estates?
Certain 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, remembering that the old adage ‘location, location, location’ is still as critically relevant as ever. Access to shops, schools, public transport, medical clinics etc are strong selling points for future tenants of your property. Also consider 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 tenancy to vacancy of the apartment block. Investigate the number of owner -occupiers versus 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 turnover and the possibility that other vacant apartments in the block will compete with you for rental dollars. When considering houses as an investment opportunity remember to factor in maintenance of the property on a regular basis, particularly for older properties.
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