Top 5 investor suburbs across Melbourne
To make it a bit easier for Melbourne investors, buyer’s advocate and director of Advantage Property, Frank Valentic picks five top investor suburbs where it’s possible to maximise your return on investment.
“The most important thing to remember when investing in property is that you’re not buying your forever home,” says buyer’s advocate and director of Advantage Property, Frank Valentic.
Here are Frank Valentic’s top five investor suburbs in Melbourne.
Elwood is a top investor suburb as it offers high growth potential mainly due to its premium location.
Just 8km from the CBD, the bayside suburb boasts a lifestyle close to the hustle and bustle of the city and a short distance to the beach.
There are a variety of property types including apartments, units and houses. The older style homes are particularly beautiful including Federation-style architecture and California bungalows.
The median house price is $1,820,000 and the median rental price is $690 per week.
The annual rental yield in Elwood is 2.0% and there has been a growth rate of 6.5% for houses over a five year period.
Reservoir is located 12km north of Melbourne’s CBD and is well connected through public transport.
The large backyards that homes in the suburb typically boast make it perfect for young families.
It is also one of the more affordable Melbourne suburbs with a median house price of $695,000. It has seen a growth rate of 7.8% for houses since 2014.
Houses in Reservoir can be rented out at a median of $390 per week with an annual rental yield of 2.7%.
Dromana is gaining in popularity as buyers and renters start to veer away from the other more expensive beachside suburbs including Portsea and Sorrento.
Located just an hour away from the CBD, the suburb has a median house price of $791,000.
Houses here rent out for $360 per week and have an annual rental yield of 2.5%.
Parkdale is another great investor suburb according to Valentic.
Located 20km from the CBD, it boasts a beachside lifestyle with a strong transport link to the city.
The median house price is $1.18m and the median weekly rent is $520 per week.
The annual rental yield is 2.3%, and based on five years of sale, Parkdale has a growth rate of 8.5% on houses.
Ardeer is located near Sunshine in Melbourne’s north west.
The good schools, large blocks of property and strong community vibe makes this a good investor suburb.
The median house price is much friendlier than most other suburbs close to the CBD at $595,000.
The median weekly rent is $340 per week and there is a rental yield of 3%.
Ardeer has also seen strong growth of 11% over the last five years of sales.