The best suburbs in Melbourne to invest.


Every investor wants an investment property in Melbourne. So, what is the best suburb to 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.

What Is The Best Suburb To Invest In, In Melbourne?Unit, House or Apartment?
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 out preform 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.


Follow The General Rules Of 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.

It’s important to be more disciplined in following the rules. Make sure it’s

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.

What Is The Best Suburb To Invest In, In Melbourne?

$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.

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 or just simply call us on 1300 00 WISE. 

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