Building real estate assets is one of the less risky strategies to grow capital. Buying an investment property is an excellent way to diversify your portfolio and achieve your financial goals. If you are planning on purchasing a second property to secure your future, this blog is for you. We’ve compiled a guide on realty investment and included some of the best locations in Melbourne for building your assets.
How to Start Investing in Property?
You’ll need to consider a few things before choosing an investment property in Melbourne. Here’s a short guide to help you get started:
Research the Market:
It’s a good idea to keep tabs on the current market trends, real estate values and rental yields in different areas. It will help you identify potential investment hotspots. You can use reports and market analyses for research.
Set Your Budget:
You’ll need to determine how much you can invest. Consider the purchase price alongside ongoing costs such as maintenance, property management and taxes.
Finance Your Investment:
In case you need a little assistance, secure financing through a mortgage broker, like Mortgage Friend. We can help you find suitable loan options for your needs.
Choose the Right Property:
When buying an investment property, consider factors like location, type and potential for capital growth. You should also evaluate whether it suits your investment strategy. Think about whether it can help you build a diverse portfolio and ensure profitable returns.
Conduct Due Diligence:
Perform thorough inspections and check for any legal issues before making an offer. Make sure that the property complies with all local regulations and zoning laws. You should also look up any planning restrictions that could affect the location.
Purchase and Close the Deal:
Once you are confident about investing in property, it’s time to move forward with the deal. If the offer is accepted, make the deposit and complete the mortgage application.
Benefits of Buying an Investment Property
To build assets, purchasing apartments, townhouses, or other forms of real estate is a great choice. Some benefits of buying an investment property in Melbourne are:
Capital Growth:
home value will grow and provide significant returns on your investment. Historical data shows that well-chosen properties can yield substantial capital appreciation.
Rental Income:
By renting the place, you generate a steady income stream. Consistent rental income provides financial stability and cash flow. Furthermore, it can cover mortgage payments and other expenses.
Tax Benefits:
Investors can take advantage of various tax deductions, including mortgage interest, property management fees, and depreciation. They can provide significant savings on your taxable income.
Diversification:
Adding real estate to your investment portfolio diversifies your assets, reducing overall risk. Real estate often behaves differently from stocks and bonds, providing a buffer against market volatility.
Control:
Unlike the stock market, you have direct control over your investment. You can make improvements to increase its value and actively manage your investment to maximise returns.
Top Investment Property Locations in Melbourne
Are you looking for high-growth suburbs in Melbourne for real estate investment? Take a look at some of the most popular ones:
Ivanhoe:
If you are looking for a location with affordable housing options, Ivanhoe should be on your radar. Its leafy streets, excellent schools, and proximity to the CBD make it a good place for investment. This suburb offers a mix of modern apartments and traditional homes, making it suitable for both families and young professionals. Besides, the vibrant community and easy access to public transport make it a prime location for property investment.
Heidelberg:
This suburb boasts numerous parks, top-notch medical facilities and an inviting atmosphere. Its historic charm and excellent public transport links also make it a desirable location for renters. The suburb's rich cultural heritage and recreational amenities add to its appeal.
Eaglemont:
Rich architectural heritage and low-density acreage make Eaglemont one of the highest-growth suburbs in Melbourne. Located between Ivanhoe and Ivanhoe East, its tranquil environment and luxury homes attract high-income tenants. If you’re looking to invest in rental properties, you’re in the right place.
Rosanna:
It is a family-friendly location with excellent schools, recreational facilities and a vibrant local shopping scene. The area has a strong sense of community and convenient amenities, boosting its investment potential.
Greensborough:
The thriving local economy, good schools and a strong community make this place an appealing investment destination. Moreover, therental yields for units are currently 3.65 % with an average median rent of $480 weekly. It makes Greensborough an attractive location for property investment.
Eltham:
This suburb is known for its thriving artistic community and scenic beauty. It offers a unique lifestyle that appeals to a wide range of renters. Eltham offers a lot of opportunities to broaden your portfolio if real estate investment interests you.
As a real estate investor, you can make money through rental income and value appreciation. It is a distinct asset that can grow your capital and offer financial stability at the same time. So if you need some assistance with apartment investments in Melbourne, contact Mortgage Friend for expert advice. Call us on 0407 949 044 or drop us an email at jkassoc@arc.net.au to book an appointment.
