There are ways to sniff out the best investments, the best property investments are not always in the inner-city you can find suburbs that have strong capital growth, high rental fees and affordable prices. You need not rush into property investment especially if the stock is limited. Waiting could get you a better deal and be better value for money.
From early 2009 until early 2010, a high influx of property buyers prompted a 22-percent increase in Melbourne house prices. However, the market cooled down due to slowing price growth and falling clearance rates at property auctions. While owner-occupiers are hesitant to buy new properties, investors are on the move.
Years ago, investors had a different mindset, they would try to get beachfront or inner-city properties for strong capital growth, high demand or accessibility to amenities and public transportation. However, the times have changed and houses in inner-city or beachfront areas are worth at least $1 million and it can give slow to negative income returns.
Properties in northern and western Melbourne are more affordable and have better profit potential than the properties in the eastern and southern part of the city.
Up to the third quarter of the year, these suburbs gained capital growth from 16 to 21 percent while the overall average capital growth of all Melbourne properties is 13 percent. Since inner-city properties have become unaffordable, more households are seeking properties in these working-class suburbs.
It is important then when seeking an investment property that you do your research and determine where and what type of properties will give you the best returns. When you have decided on the right investment property find the right home loan is the next step.
