Investment Property in Melbourne

Investment Real Estate in Melbourne

Melbourne property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Melbourne .

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Search Map of Melbourne Investment Real Estate

Melbourne ( MEL-bərn; Woiwurrung: Naarm) is the capital and most-populous city of the Australian state of Victoria, and the second-most populous city in Australia and Oceania. Its name refers to an urban agglomeration of 9,993 km² (3,858 sq mi), comprising a metropolitan area with 31 municipalities, and is also a common name for its city centre. The city occupies much of the coastline of Port Phillip bay and spreads into the Hinterland towards the Dandenong and Macedon ranges, Mornington Peninsula and Yarra Valley. It has a population of 5 million (19% of the population of Australia), and its inhabitants are commonly referred to as “Melburnians”.

Home to Indigenous Australians for over 40,000 years, the Melbourne area served as a popular meeting place for local Kulin nation clans. A short-lived penal settlement was built at Port Phillip, then part of the British colony of New South Wales, in 1803, but it was not until 1835, with the arrival of free settlers from Van Diemen’s Land (modern-day Tasmania), that Melbourne was founded. It was incorporated as a Crown settlement in 1837, and named after the then British Prime Minister, William Lamb, 2nd Viscount Melbourne. In 1851, four years after Queen Victoria declared it a city, Melbourne became the capital of the new colony of Victoria. During the 1850s Victorian gold rush, the city entered a lengthy boom period that, by the late 1880s, had transformed it into one of the world’s largest and wealthiest metropolises. After the federation of Australia in 1901, it served as the interim seat of government of the new nation until Canberra became the permanent capital in 1927. Today, it is a leading financial centre in the Asia-Pacific region and ranks 27th globally in the 2020 Global Financial Centres Index.

Melbourne is home to many of Australia’s best-known landmarks, such as the Melbourne Cricket Ground, the National Gallery of Victoria and the World Heritage-listed Royal Exhibition Building. Noted for its cultural heritage, the city gave rise to Australian rules football, Australian impressionism and Australian cinema, and has more recently been recognised as a UNESCO City of Literature and a global centre for street art, live music and theatre. It hosts major annual international events, such as the Australian Grand Prix and the Australian Open, and also hosted the 1956 Summer Olympics and the 2006 Commonwealth Games. Melbourne consistently ranked as the world’s most liveable city for much of the 2010s.

Melbourne Airport, also known as Tullamarine Airport, is the second busiest airport in Australia, and the city’s port is the nation’s busiest seaport. Its main metropolitan rail terminus is Flinders Street station and its main regional rail and road coach terminus is Southern Cross station. It also has Australia’s most extensive freeway network and the largest urban tram network in the world.

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The financial stability of Melbourne has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

Buy to Rent in Melbourne

Renting out your Melbourne buy-to-rent investment property can grow wealth and income.

Whatever your goals with investment property in Melbourne are – preparation is key.

Set goals based on how much rental yield will be required and the local rental yield rates in Melbourne and be prepared to change your initial outlook.
Thoroughly research the Melbourne location with a special emphasis on fringe areas outside the main Melbourne metropolis that may be valued lower than their better-known neighbors. Rental yields of around 5% are still attainable in certain areas of Melbourne.
Ensure that your target investment property in Melbourne appeals to professionals. This is a demographic that ensures maximum income and low voids.
Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent such as Physis Realty with local knowledge and experience of property legislation will give you the best chance of success.
You may think that managing your Melbourne properties yourself is an easy option, but are these savings justifiable when you run into Melbourne red tape? Physis Realty Melbourne office in downtown provides you with peace-of-mind and leaves you time to plan your next move in the growing Melbourne buy-to-rent sector.

With our expert guidance, investing in Melbourne provides the secure knowledge that your money is working harder than it would in a local Melbourne bank and that future generations of your family will be left with substantial capital growth assets.

We are always happy to advise on buying investment property in Melbourne, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Melbourne property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Melbourne

Flipping property in Melbourne

Flipping property is when we advise clients to buy a Melbourne property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Melbourne market has a time to react to the renovation.

The Flipping Strategy in Melbourne

Investment property flipping in Melbourne is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Melbourne real estate investments are sometimes referred to by professionals as ‘distressed’ Melbourne real estate.

What is distressed Melbourne property:

Melbourne property in need of renovation
Melbourne real estate with a change of purpose and use
Oversold Melbourne property
Bank repossessions in Melbourne

Put simply, long term investors in Melbourne purchase the property, renovate it and make it a lot more attractive to potential buyers.

Calculate profit that you make from Melbourne investment property flipping:

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Melbourne property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

Experienced property developers in Melbourne use a minimum profit value of 22% when looking at potential Melbourne projects. The reason for this is because there are lots that can go wrong in Melbourne property flipping and working on a potential margin of 22% should still leave a good margin of error.

Luxury Property in Melbourne

For luxury property investors hoping to add a superb property in Melbourne to their luxury real estate investment portfolio, Physis Realty is a trusted partner.

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A world leader in luxury real estate with a portfolio comprising some of the most sought-after real estate in Melbourne, Physis Realty caters particularly to high net-worth individuals and families. A luxury real estate investment in Melbourne should be entrusted to only the highest-quality agency.

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