Astute Melbourne property investment decisions have delivered both strong capital gains and rental yields to investors in a handful of Melbourne suburbs, figures released this week reveal.
Property market analysis firm CoreLogic RP Data has crunched the numbers, identifying Melbourne suburbs where properties have bettered their Melbourne averages for compounding annual growth rates over the past decade (5.77 per cent for houses and 5.16 per cent for units) and gross rental yields in the past year (3.6 per cent for houses and 4.1 per cent for units).
In the unit market, 34 Melbourne suburbs bettered both the capital growth and yield averages; in the housing market, 33 suburbs achieved the same feat.
According to CoreLogic RP Data, the five property investment Melbourne standouts in the unit market were Ferntree Gully, Brunswick West, Chelsea, Mount Martha and Boronia.
The top five property investment Melbourne suburbs for houses were Bayswater, Altona North, Boronia, Collingwood and Mooroolbark.
“It is interesting to note that many suburbs in the outer eastern suburbs, around the base of Mount Dandenong, have recorded above-average yields and capital gains over the past decade,” CoreLogic RP Data Victoria housing market specialist Robert Larocca said.
“The other area of Melbourne that has multiple suburbs with good capital gains and yield is the inner east.
“Obviously the skill for an investor is not just finding the right suburb but the right property and that can take time and requires both research and a strong understanding of the local market.”
Fortunately for investors looking to find those gems in the Melbourne property investment market, there are alternatives to DIY property investment.
Portfolio Management Services has been active in Melbourne property investment for more than 40 years, buying investment property that has consistently outperformed the market for clients according to independent research by Atchison Consultants.
Portfolio’s Melbourne property investment acquisitions team is expert at finding established houses at or below market value in suburbs primed for growth and strong returns.
Only property investment Melbourne options that offer above-average capital growth prospects, above-average rental returns and that require minimal or no refurbishment to meet those objectives are recommended to clients.
Portfolio is also active in the Sydney and Brisbane property investment markets, where its local experts are identifying properties that meet the company’s tried and proven investment methods for property investment success.
With property markets in the eastern capitals recording strong growth in the past year, the challenge for investors was to find investment property at the right price, Portfolio’s managing director Jock Bing said.
“There’s always something out there to buy, it just takes longer to find it,” he said.
“In Melbourne we might look at 20 properties and buy one (that meets Portfolio’s investment criteria in the current market), in Sydney we might look at 15 and buy one. You wouldn’t want to be doing it yourself.”
To discuss your property investment Melbourne, Sydney and Brisbane options with Portfolio’s property investment experts, call today on (03) 9621 1044.