Investment property in Melbourne is an exciting way to build wealth, but it can also be a complex and risky endeavor. Before you take the leap, it’s important to fully understand your options, examine the metrics, and weigh the financial implications. By doing so, you’ll be able to make a sound decision that will help you reach your long-term goals.

As a rule, houses experience greater long-term value growth than apartments. This is because a house’s underlying land typically appreciates, whereas an apartment’s structure depreciates. Moreover, a house is usually more affordable than an apartment, which can be a good entry point into the market.

Melbourne’s Top Suburbs for Investment Properties in 2024

Ultimately, your decision should be driven by the type of return you want and your ability to manage expenses over time. Remember, negative gearing properties can be cash flow sapping, so it’s crucial to have an adequate financial buffer to see you through periods of low rental income.

The good news is that, when it comes to investment property in Melbourne, the choices are endless. The key is to seek out quality established houses on decent-sized blocks that will appeal to a broad range of affluent owner-occupiers. These properties are likely to have desirable lifestyle amenities and easy access to Melbourne’s CBD. They’ll also be positioned to benefit from affluent suburbs’ wage growth potential over the longer term. This will ensure sustainable property yields and a solid return on your initial capital outlay. As always, we recommend working with a professional to guide your investment decisions.