The best suburbs in Melbourne to buy property & invest.

Every property buyer or investor want a property in Melbourne, it’s famous for being the most livable city in the world! So what is the best suburb to buy property or invest in? Your budget will generally dictate where you buy so here are a few tips on locating the right suburb to suit your budget.

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Why Buy In Melbourne?

A consistent rise of real estate prices and low tenant vacancy rates have both been reliable attribute in owning an investment property in Melbourne.

Melbourne has had the title of The Most Livable City in the world for a number of years running. It’s known as one of the most liveable cities in the world therefore making it a hot spot for new settlers, worldwide.

Its occupants have access to Australia’s best life style amenities such as beaches, wine regions and mountain ranges. Melbourne also hosts Australia’s best restaurants, sporting events and festivals.

Yes, it has some cold seasons and many Melbournites believe we get four seasons of weather in one day although there are no tropical storms, cyclones, monsoon seasons, volcanoes, snow or heavy rain to potentially disrupt the economy.

East Vs West

The best way to remember the hot suburbs in Melbourne is to compare it to real estate prices on a Monopoly board.

At the start of the game (Melbourne’s Western Suburbs) property is most affordable, then as you work your way around the board things start to get more expensive. Towards the end of the board they have some really pricey real estate that pays big rents. This represents the East and South-Eastern suburbs of Melbourne.

Unit, House or Apartment?

What Is The Best Suburb To Invest In, In Melbourne?Buying a house always gives you more long-term options. You can renovate, knock-down or rebuild one or even two dwellings.

For the same money as a house, a unit can outperform a house in capital growth if it’s in the right suburb. Units are cheaper to run, lower maintenance and easy to lease out. You can renovate a unit but never really expand the size of the property or subdivide.

The choice between the two would come down to working out what type of investor you are.

Apartments in Melbourne haven’t been the greatest investments over the last five years. This is due to an over supply of stock that has been coming onto the market since 2016.

Eventually, the apartment market will turn. Every investor believes in the ‘buy low & sell high’ strategy so there could be an opportunity to buy low for the investor willing to take a risk.

For more info check out our article on Is it better to buy an apartment, townhouse or house?

Follow The General Rules For Buying A Good Property.

Once you have picked the area that matches your budget apply the below rules to your property selection criteria:

When buying a house,

  • Look for good schools.
  • Good Access to natural amenities (walking tracks, parks, beaches etc).
  • Train or Tram Stations at a walking distance.
  • Buy as close as you can to the CBD.
  • Always buy a good quality property that has potential to add value.

When buying an apartment,

  • Not a high rise and within 8km of Melbourne’s CBD.
  • Walking distance to lifestyle amenities and employment.
  • Light-filled and roomy.
  • A minimum of t bedrooms.
  • The apartment is well looked after with no maintenance issues.

The below suburbs have a history of being great suburbs to buy in.

$1M to $1.5M Budget

Western Suburbs
Yarraville, Williamstown & Footscray.

Northern Suburbs
Brunswick, Essendon & Flemington.

North Eastern
Balywn, Doncaster & Kew.

Hawthorn, Malvern East & Armadale.

South Eastern.
Brighton, Elwood & Prahran.

$600,000 to $950,000 Budget.

Western Suburbs:
Williams landing, Altona meadows & Altona North.

Northern Suburbs:
Preston, West Brunswick & Coburg.

Eastern Suburbs.

Glen Huntly & Murrumbeena.

South Eastern Suburbs

Mordialloc, Aspendale & Edithvale.

The western suburbs of Melbourne offer some of the best value real estate in Victoria. Rental yields are relatively high in comparison to the cost of housing.

As with all parts of Melbourne housing allotments shrink the closer you get to Melbourne CBD.

The West of Melbourne is the least demanded by home buyers, investors and tenants. This is due to several fuel refineries around Altona North and large commercial warehousing located between Laverton to Sunshine.

The premium suburbs are some of the best in Melbourne. Altona, Williamstown, Newport, Yarraville & Seddon. Altona and Williamstown are great bay side suburbs.

The West features three train lines: the Werribee line, Williamston line, Ardeer line and 2 regional lines.

One of Melbourne largest infrastructure projects is currently being built: West Gate Tunnel Project.

The developing suburbs of the west: Wyndham value, Werribee, Melton, Bacchus. You will find the west’s developing suburbs the closest as the crow flies from Melbourne.

The inner north is known for some of Melbourne’s trendiest suburbs where café culture and old pubs are common real estate: Brunswick, Fitzroy, Fitzroy North and Carlton.

The outer northern suburbs of Melbourne offer great value real estate with relatively high rental yields in comparison to the cost of housing.The premium suburbs of the North & Northeast: Essendon & Moonee Ponds, Eaglemont, Alphington, Clifton Hill & Northcote.If you after a country lifestyle with large blocks of land that located close to the city than the outer North East is where you want to be: Montmorency, Eltham & Greensborough.   

As with all parts of Melbourne housing allotments shrink the closer you get to Melbourne CBD.The north features 2 Train lines, Craigieburn and upfield lines with one regional line (Albury line).The northeast have 2 train lines: Mernda and Hurstbridge train lines.

The developing suburbs of the north: Epping, Wollert, Mernda, Mill park and South Morang.

What makes a suburb great?

You will notice all the historic suburbs have a lot in common, for instance:

What Is The Best Suburb To Invest In, In Melbourne?None are located in developing parts of Melbourne. New suburbs lack infrastructure, schools and lifestyle amenities. As the population of Melbourne booms the outer suburbs are getting known for traffic problems. Developing suburbs are located in the far corners of the east, north and west of Melbourne.

All have zoned schools that only accept students the live locally, this stands for public or private schools a like. To work out school zone in a suburb you like check out find my school zone, it’s run by the state government of Victoria. Some premium schools can increase the price or real estate dramatically within school zone boundaries. Check out our article on why school zones increase property values.

All have major infrastructure located near by. Trams, trains or access to highways.

Cafés & restaurants are never too far away. In fact Melbourne is famous for its café culture so it makes sense to buy in suburbs that support the culture.

Natural amenities are always another big winner that offer residence great lifestyle choices. In Melbourne premium real estate is located around Port Phillip Bay or the Yarra River. You will notice Melbourne’s most expensive real estate is located around the bay.

For more great suburbs, check out our article on: Top 20 Growth Suburbs Melbourne.

A balanced investment portfolio should include good quality real estate. The property market in Melbourne has seen amazing growth over the last 30 years and there’s every sign that over the long term, property will continue to be an extremely solid investment.

In 2018, getting into the market is becoming more difficult each year and for the first time it’s getting extremely hard just to enter the market. Making the right move is critical to your long-term success as an investor.

At Wise Real Estate Advice, we ensure all boxes are ticked and that sincere care is taken when providing a buyer with the wise advice and action required throughout the buying process. To speak to one of our friendly buyer’s agents click here to fill out an enquiry form.