Wed 19 Sep, 2018
The Best Suburbs to Invest in Melbourne Australia
It’s no doubt that choosing where to invest in property can be difficult. Especially with the speculation of a housing bubble in cities like Melbourne and Sydney, it may seem like there aren’t many options left. However, despite the cooling down of capital growth seen in eastern capital cities, there’s still plenty of growth happening. Especially if you know where to look! So every month, we’ll focus on identifying promising suburbs in Australia to consider as potential investment areas. This month, we’ll discuss the best suburbs to invest in Melbourne.
While growth itself is slowing in Melbourne, home values are tracking pretty well, all things considered. The city is experiencing steady job growth and continued interstate and international migration, which are keeping demand in a strong position. Whether you’re looking to invest for the first time or expand your existing portfolio, could these be the next best suburbs to invest in Melbourne?
Remember, this article is not personal financial advice, nor is it to be interpreted as personal advice on where to invest in property. The purpose of this article is to give a general overview of which areas are experiencing growth and infrastructure developments, and what makes an area an attractive place to invest. It is important to conduct your own research when considering a property investment, paying particular attention to the benefits and risks involved.
What are the promising suburbs to invest in Melbourne?
Melbourne’s western suburbs have been an investor haven for the past couple of years. As demand has gained momentum, interest has spread further out from the likes of Footscray and Williamstown. For example, the spotlight has fallen on other Melbourne suburbs such as Albion, Maidstone and Sunshine. If you’re willing to wait for gentrification to trickle towards these under-the-radar suburbs, you could be onto a winner.
Close neighbours with Cranbourne, Packenham and Berwick, Officer enjoys a prime location in one of the south-east’s fastest growing corridors. The government has invested in various infrastructure in Officer, which is leading to increasing demand for this suburb. These include new roads, the Monash Freeway extension, new hospitals, upgraded shopping precincts and other family-ready amenities.
As new entrants to the market have been gradually priced out of trendy hubs like Brunswick, Coburg and Fitzroy, interest has shifted further north. This means that many young families and first time buyers are setting up base in Reservoir and its surroundings. As the ripple effect of gentrification sets in these previously ‘sloppy seconds’ suburbs could be making waves in the market.
If you’re looking for beach-side suburbs to invest in Melbourne, Seaford may be it! The suburb has been a popular choice among investors looking for a slice of the beach-side pie since 2015. However, given its proximity to the bay, there are still plenty of investment opportunities in the market. Prices have risen steeply in the past 24 months, but keep your eyes peeled for development opportunities in this suburb. As new high capacity trains are rolled out on the Frankston metro train line, more Melbourne commuters could live further out while still having easy access to the CBD.
The extension of the metro trains South Morang line has worked wonders for real estate in the outer northern corridor. The addition of new stations has provided previously isolated communities with fast and easy access to the CBD. While house and land prices have already skyrocketed as a result, demand is only set to grow. Early adopters may have already cashed in, but there’s certainly still time to hop aboard this commuter-ready investment opportunity.
How to Finance your Melbourne Investment Property?
Whether you’re thinking of investing in one of these booming suburbs in Melbourne or not, financing your investment property can be a whole other battle. But did you know you can use your super to invest in property through a self-managed super fund? Yes, it’s true! Plus, buying property with your SMSF offers numerous tax advantages as well as working towards your retirement goals.