If you are planning on making the leap into property investment in the New Year, or you’re looking to expand your existing portfolio, here are our top tips of the hottest suburbs to invest in Melbourne in 2018.
With a median unit price of just $275,250, inner-city Carlton is an affordable option for an investment property. Close to the CBD, it’s also a student hotspot, thanks to nearby Melbourne University. The median rent for units is $450 per week, and with a vacancy rate of 1.8 per cent, it’s a landlord’s market. If you can snap up a one-bedroom flat in Carlton, you could be onto a winner with a positive cash flow investment. There’s also the restaurant scene on Lygon Street, and quirky Brunswick Street nearby, to lure a range of prospective tenants to your property. For just $155,000 to $160,000 you could invest in this unit, with loads of potential to let to a student and earn a fantastic return.
Situated 18 kilometres north of the CBD, Dallas is an affordable, unassuming family suburb. The median unit price in Dallas is $350,000, and the median rent $340 per week, giving landlords a healthy return on their investment. Houses are currently sitting at a median of just $410,000, and renting for around $330 per week. The vacancy rate is just 1.2 per cent, so you’re unlikely to experience costly long-term vacancies in this high-demand market. At $349,000 to $359,000, this three-bedroom property is an excellent, low-maintenance option.
Melton, in Melbourne’s growing outer west, is popular with young families thanks to its affordability and open spaces. The median price for units is $270,000, and a house will set you back around $357,000. With medians of $270 per week and $300 per week respectively, Melton offers healthy yields for beginner investors. The current vacancy rate is just 1.4 per cent, so there’s no shortage of tenants seeking a property to rent. This unit, listed for $299,000 to $319,000, is an ideal investment property.
On Melbourne’s south-eastern outskirts, Pakenham is a growth area where housing and infrastructure is set to boom. A unit in Pakenham will set you back around $329,000, and you should be able to collect up to $320 per week in rent. For a house, expect to pay around $475,350, with the median rent for a four-bedroom property currently $380 per week. Vacancies are at 1.4 per cent, and many of the homes in the area are in modern estates, so they won’t require much upkeep. This four-bedroom home, selling for $440,000 to $480,000, would be perfect for investors.
In Melbourne’s north, Craigieburn is a hub of activity and innovation, with new shopping centres and housing developments cropping up all over the place! Units are currently sitting at a median price of $340,000, and renting for $330 per week, while houses are averaging $502,250 to buy and $370 per week to rent – so a unit is likely to be a better investment here. The vacancy rate is currently just 1.2 per cent, making it a solid choice for investors. At $500,000, this four bedroom home in a new estate is close to amenities and won’t require much upkeep.