It’s not hard to understand why an increasing number of Victorians are thinking about securing their long-term financial future by purchasing an investment property or two.
However, the rental statistics from the latest quarterly Domain Rent Report which was released earlier this week have provided a timely reminder that not every investment property turns out to be a good investment…confirming the importance of getting experienced objective advice before deciding which property to purchase.
The figures for the June quarter from Domain indicate that on average, Melbourne is now one of the two least expensive capital cities in Australia to rent in. This is the first time that Melbourne has been viewed as this affordable, sharing the bottom rung of the ladder with Adelaide at $430 per week for the median house rental.
Clearly Melbourne’s rental market has been impacted by the pandemic, with the local apartment market weakening further. The Domain figures suggest that unit rents dropped a further 2.7 per cent or $10 per week in the last quarter.
What these figures confirm is that it is even more important than ever to select the right investment property in the right area, and to buy it at the right price. Decisions like this are not simply a matter of choosing between an apartment, a villa unit, a townhouse or a free-standing home, as the smart investor will know that an apartment in one suburb can be a very productive investment whilst an identical apartment two suburbs away can be an extremely poor performer, whereas a townhouse in the suburb in between might outperform both of them. It’s all about understanding the market in general, and how an individual investor’s priorities can best be met through an astute purchase.
If you’d like some help in sourcing the right investment property in Victoria, including exploring the potential of an off-market property that isn’t available to the general public, you can have a confidential chat with one of our Buyer Advocates by calling 9430 0000.