VIC Melbourne investment properties eastern suburbs

Hi all,

My budget is around 1M. I am looking for an investment property in the eastern suburbs but am a little bit worried about the low yield. What are your recommendations.

1M gets me I guess a townhouse in Burwood which I can rent out for about $500 per week. 2.6% yield.

Or I think if I go further out to like Bayswater it should be good enough for a house but that would probably only rent for $380 per week. 2% yield.

Both don't sound like awesome investment opportunities. Any ideas?

 

If you don't mind Southeast.

Narre Warren area has good rental demand.
Vacancy rate is 0.8%
Rental yield for 3 bedroom house is 3.4%.
Demand at realestate.com.au is 1055/1831.

Berwick has similar numbers with 0.8% vacancy rate and 3.7% for 3 bedroom house. I prefer demographics in Berwick.

Good luck.

SQM Research - Property - Property Gross Rental Yield - Postcode 3805

 

Hi @Vincent3

Split 1M into two properties or as near to two as possible.
Better Diversification, decent rental and also look into Geelong.

Cheers

 

I live in the hills (Dandenong ranges) and that's where I invest.
Vacancy rate is close to zero (most of the properties are owner occupied, so there's very small stock for rentals).
If you look around Emerald, Cockatoo, Gembrook, Macclesfield, Monbulk, Seville etc you'll find very good properties for 700K - 800K. With large land (1000sqm+).
Rent is currently 450 - 650, so yield might not be too great, but land appreciation will.

I spent 1.18M and rent for 1000-1100 (but an acreage, with more then just the property).

 

Agree, these don't sound like great options.

Yields are not great in Melbourne, but if that's where you want to invest, I would be looking for a house in an established suburb on the outskirts for $600k-$800k. Depending on your servicing, this could leave you with room to buy something else in Brisbane, Bendigo, etc.
You should be able to get >3% yield on something like this & still get decent CG from the land.

https://www.realestate.com.au/property-house-vic-bayswater-136269382

 

Thanks for the advice everyone.

About Clayton, and the north and all these are good ideas and I also have properties in Bundoora, which I think is underrated as it is quite close to the city has a tram and is also quite cheap.

BUT i must add that this is more than an investment property as I would also like to be able to live there and my family and friends tend to live around Glen Waverley, Burwood and those kind of areas.

Another option I am looking at is Heathmont and maybe endeavour Hills.

 

I would also look around Notting Hill and Mulgrave, if you want to be close to GW.

 

https://www.realestate.com.au/property/79-81-king-st-templestowe-vic-3106

I dont know much about the asking price of this one, but it pricked my interest due to being an administration sale,

corner block, permit plans for 10 props,

might be an interesting project for those that can afford it

 

If looking for close to GW - that budget will get you in to Rowville which is closer - easier access to GW.
Another option if PT (train especially) is not an important priority for you.
Also depends on where you work, other suburbs you need to access.

Good luck!

 

Hi OP ! Can I ask where did you landed in terms of suburb?

 

blackburn proper would be my pick, especially if the cross city rail gets up and box hill does eventuate as a potential cbd alternative....

 

Ferntree Gully near the train station will fetch around $500 per week. Can still get a decent block for 900k
Low vacancy rate