Melbourne has long been an investor’s delight because of the high capital growth of property. Although property in Melbourne can be expensive, there are still plenty of quality suburbs which experience rapid growth and good rental yield, while still remaining affordable.
Whether you’re a first-time home buyer or an experienced investor, it is handy to know which suburbs are performing well and where properties are selling at or below your budget. Pair yourself with an expert buyer’s agent and you’re well on your way to securing a top property at a great price.
We’ve put together a list of the 8 most affordable suburbs in Melbourne to help you with your property research.
Once upon a time you might have mistaken Craigieburn for a quiet country town, but now it is a vibrant and popular area in Melbourne’s north. New developments, shopping centres, parks and sports centres have been springing up all over the place to keep up with demand.
The median house price is $550,000 and even less for units, $385,000. Houses lease for around $380 per week and units for $340 per week. These median prices have increase by 63% in the last five years, so they are on par with some of the best performing suburbs in Melbourne.
Whether you’re buying your first home or looking for a solid investment property which won’t break your bank, Craigieburn won’t disappoint if you are careful with your asset selection and take the time to find the right property.
Melton gets a bad rap sometimes, but if you look at the stats then you might reconsider your view. At the moment the median house price is just $410,000 which has grown by 68% in the last five years. Units sell for around the $310,000 mark, and vacancy of rental properties is low so you won’t have a problem finding a tenant and making a 4% rental yield.
What’s more, Melton is rapidly growing and has a good train line into the city, and only 30 minutes to Tullamarine airport. A lot of families choose to live here for the slower pace of life, while remaining close enough to work in the city.
If you’re investor, Melton could surprise you with excellent capital gains, strong rental yield and low tenancy vacancy rates.
On the other side of town right next to the Royal Botanical Gardens Victoria is Cranbourne. This suburb has undergone some major changes in the last 50 years. Once farmland and scrub, Cranbourne is now a desirable suburb with a vibrant commercial centre, great schools, lots of parkland, and excellent public transport routes.
The median price is $540,000 for houses and $386,000 for units. According to Vendor Advocate Melb, sales prices have shot up 79 % in the last five years and yearly growth is consistent. An excellent choice for growing your property portfolio.
Werribee has a surprising amount of things to do and see. It has a winery, zoo, beach, and ample parklands. A major shopping centre and a number of good private and public schools in the area round off a suburb with good lifestyle factors and family requirements.
An express train line to the city sees a lot of professionals traveling to work each day while living in an affordable suburb that meets their families’ needs.
Sales have grown by 70% in the last 5 years so that the median house price is a round $500,000. There are plenty of older properties to renovate and new homes to suit everyone’s need.
The suburb next to Werribee, Hoppers Crossing has a similar growth story. A 72% increase in the last 5 years has brought the median house price to $550,000.
Hoppers Crossing is right next to the freeway and has many of the same features as Werribee. It also sits between Hoppers Crossing station and the regional station in Tarneit, so you have many options for commuting to the city.
Hoppers Crossing also has larger blocks than normal so the potential to subdivide, build units and increase your rental yield is a great idea that many investors are beginning to do.
One of Melbourne’s fastest growing suburb, Officer is becoming an attractive hub for investors and home-owners. In the last five years, Officer’s median price has increase by a whopping 182%, with a consistent annual growth of 24%.
Officer has everything you would expect for a quality suburb: lots of schools, railway station, and new shopping centres.
Median house price is currently at $550,000 so it is still within the grasp of a first home buyer and perfect for investors looking for a steal.
North of Melbourne you’ll find the little pocket of Dallas. Close to Upfield station, the Hume Highway and Melbourne Tullamarine means all your transport is covered. Its only 20 km from the city, but far enough to still be affordable.
The median house price in Dallas is $476,000 making it one of the cheapest in Melbourne. This has attracted a lot of young people and families who are trying to save money while staying relatively close to Melbourne. A savvy investor will see this as an opportunity for good rental yield, and solid capital growth which averages to 12% a year.
I’ve thrown in something a little different for this last one to get you thinking about the different investment opportunities out there.
Carlton is not often thought of as ‘affordable,’ but it is unique in having many cheap apartments. Add all the universities in close proximity and you’re left with a student population who desperately need somewhere to stay. You can pick up a one-bedroom apartment for around $226,000 and expect a rental yield of 9.1%, which is exceptional. The capital growth of this sort of apartment is not great at 2.6%, so you should know why you’re buying this sort of property, but if you know what you’re doing, this sort of high-yielding property can make a good addition to a property portfolio.