If you’re looking to invest in property, there are several things you’ll need to take into account: the cost, the rental yield, and the likelihood that your property continues to increase in value over time.
Melbourne property is highly sought after – but what kind of return on your investment can you expect from purchasing there? And what were the best suburbs to invest in Melbourne in 2019?
Using the latest data from realestate.com.au, we’ve compiled a list of this year’s 10 best suburbs to invest in Melbourne, based on the yearly median sale price, the year-on-year change in the median sale price, and the average rental yield for properties in these suburbs.
1: Flemington, Average Rental Yield of 3.09%
Getting the top spot for Melbourne’s best suburb to invest in is Flemington, located 4 kilometres north-west of Melbourne city centre. The median sale price for the past 12 months is $990.000, and the year-on-year change in the median sale price is a notable 6.14%.
On top of that, the average rental yield is 3.09%. While not the highest rental yield in the top ten, Flemington tops the list in terms of change in median sale price.
Flemington, located 4 kilometres north-west of Melbourne city centre, is Melbourne’s top investment suburb. Picture: realestate.com.au
2: Cairnlea, Average Rental Yield of 3.56%
Cairnlea is Melbourne’s next best suburb to invest, with a median sale price of $740,000.00. 17 kilometres north-west of the CBD, Cairnlea’s year-on-year change in the median sale price is 1.54%, slightly lower than that of Flemington.
That being said, the yearly rental yield is a little higher: 3.56%.
Leafy Cairnlea is located north-west of Melbourne’s CBD. Picture: realestate.com.au
3: North Melbourne, Average Rental Yield of 3.05%
Following Cairnlea is the inner-city suburb of North Melbourne.
North Melbourne costs a pretty penny to invest in, with a median sale price of $1,166,000. The year-on-year change in sale price sits at 1.39%, while the rental yield is 3.05%.
North Melbourne isn’t the cheapest market to enter, in Melbourne. Picture: realestate.com.au
4: Derrimut, Average Rental Yield of 3.78%
17 kilometres west of the CBD is Derrimut, the fourth-best suburb to invest in Melbourne. With a median sale price of $615,000, Derrimut is the least expensive suburb to invest in our list.
Derrimut has a year-on-year change in the median sale price of 0.00%, and a relatively high rental yield for Melbourne suburbs, of 3.78%.
Derrimut is a fantastic place to invest. Picture: realestate.com.au
5: Hadfield, Average Rental Yield of 3.19%
Hadfield comes in next, 10.5 kilometres north of the CBD. Hadfield has a median yearly sale price of $717,250, with a negative year-on-year change of -0.21%. The rental yield is a positive 3.19%.
Hadfield is number 5 on the list of top investment suburbs. Picture: realestate.com.au
6: Balaclava, Average Rental Yield of 3.23%
Situated much closer to the city is Balaclava, just 7 kilometres south of the city and a short 9-minute drive to the beach.
Balaclava has a median sale price of $1,186,000 and a change in the median sale price of -0.34%. The rental yield sits at 3.23%.
Balaclava is close to Melbourne’s CBD and beach. Picture: realestate.com.au
7: Ascot Vale, Average Rental Yield of 2.94%
Next is Ascot Vale, a short 6 kilometres north-west of the city. Ascot Vale has a median sale price of $1,140,000 and a yearly change in the sale price of -1.30%.
The rental yield is the second-lowest of our list, at 2.94%.
Ascot Vale is just 6km from Melbourne’s CBD. Picture: realestate.com.au
8: Newport, Average Rental Yield of 3.09%
Newport comes in eighth, situated on the mouth of the Yarra River and just 7 kilometres south-west of the city.
It has a costly median sale price of $1,036,000 and a year-on-year change in the sale price of -1.78%. The rental yield here is slightly higher than Ascot Vale, at 3.09%.
Newport is close to Melbourne’s Yarra River. Picture: realestate.com.au
9: Malvern East, Average Rental Yield of 2.50%
Coming in ninth is the south-eastern suburb of Malvern East – with the lowest rental yield of 2.50%.
The median sale price here is $1,754,999, while the year-on-year change in the median sale price is -1.80%.
Malvern East is located in Melbourne’s southeastern region. Picture: realestate.com.au
10: Altona Meadows, Average Rental Yield of 3.30%
And lastly, Altona Meadows is the tenth best suburb to invest in Melbourne. The yearly median sale price here is $625,000, with a year-on-year change of -2.34%. The rental yield comes in at a promising 3.30%.
Altona Meadows rounds out the list of top ten investment suburbs in Melbourne for 2019. Picture: realestate.com.au
The post Best suburbs to invest in Melbourne 2019 appeared first on realestate.com.au.