Top 5 Reasons Why Melbourne Property Is Still A Worthwhile Investment Choice

Matthew Scafidi
September 1, 2017

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With property values across Melbourne continuing a strong upward trend, the prospect of finding a reasonably priced investment property can be daunting to first-time and experienced investors. But don’t give up just yet.

Here are our top 5 reasons to stick with your goal of investing in a Melbourne property.

1. There’s still room for capital growth

If capital growth is your primary goal, Melbourne suburbs slightly further from the inner city ring are still seeing steady increases. In fact, a number of suburbs across Melbourne’s south-east have seen growth above 80 and even 90% over the past five years. While investors can’t turn back time to buy in a cheaper market, this kind of growth is a strong signal that stepping onto the property ladder sooner rather than later is a wise move.

2. Rental demand remains high across the city

For investors who plan to rent out their property, Melbourne is a solid bet for high rental yields and low vacancy rates. While the CBD and surrounding inner suburbs may be approaching a surplus in terms of apartment supply, houses are still extremely popular with renters across all demographics. Meanwhile, both units and houses outside Melbourne’s sought-after central areas are likely to attract more budget conscious renters as the city continues to expand.

3. Melbourne’s population continues to rise

One of the biggest factors driving Melbourne’s property boom is the influx of new residents arriving each week. The city’s current population of 4.5 million is expected to keep rising, with some reports suggesting it could almost double by 2051. This kind of growth means suburbs currently considered ‘outer’ Melbourne will gradually become more appealing to those looking to live close to jobs, schools and other amenities.

4. Infrastructure growth will transform the outer suburbs

While Melbourne’s inner suburbs are well served by public transport, a number of infrastructure projects such as the Metro Tunnel, West Gate Tunnel and the introduction of new high capacity trains across the city will make the outer suburbs much better connected to employment and education hubs. When deciding where to invest, it pays to factor in these big picture changes along with details at a more local level. 

5. Still a safer investment than shares

After another weekend of open houses and auctions, the idea of investing your savings in the market may start to look fairly appealing. But even though investing in shares can sometimes result in a larger return, there’s simply no comparison between shares and property when it comes to the safety of your money. While you may not see huge spikes in investment growth, you’re also never exposed to the risk of a market crash or the fluctuations of the economy worldwide.

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