Has anyone got any advise/tips for Rentvesting in Melbourne?

The two most important traits any would-be investor must look for before purchasing a place is the suburb growth rate and the rental yield of the property itself.

The reason you want to consider these options are because…

Growth rate is good for the resale value of the investment, at some point you may want to sell the place so it's good to have a return on your original investment price. Researching the suburb of your choice is critical.

Rental yield is an indicator of how much profit you are making yearly on the place. It's important to pay the right price and be sure you can achieve the rent you want. Making sure your property is rentalable.

As a landlord, you normally want around a 4% rental yield, This may slip down to slightly less if you are looking to buy in a more central location. But if you are further out, then 4% is a minimum.

Some suburbs that are producing a higher rental yield in Melbourne are as follows.

Examples of two high yields.
Melton South
Melton South has been performing very well. With a rental yield of 5.7% and a median price of $250,000. This suburb is great for your monthly return. The town is in zone 2 and is well connected to the CBD.

Coburg
4.3% rental yield and just on the cusp of the inner suburbs, this place benefits from the amenities of these suburbs and not some of the craziest prices that come with being closer.

Examples of equal yields and growth

Thornbury
Still within the inner suburbs, it as an annual growth of 4.6% and a rental yield of 3.5%, it has great access to parks nearby and great transport links to the CBD as well.

Brunswick
This popular inner north suburb has an annual growth rate of 1.7% and has a yield rate of 4.3%, With a high rental demand, you would be hard pressed to go through any void periods here.

Examples of High Growth

Altona North
Not too far away from the CBD, this suburb has an annual growth of 4.2% and an median rental yield of 3.1

Doncaster
The rental yield sits at 2% but it has annual growth of 9.4%! That is a massive return. This suburb has a demand for rental properties as well. Plenty of people will need to get to the westfields there.

You may find these articles helpful:
- http://about.homely.com.au/blog/2016/1/14/pros-and-cons-of-rentvesting
- http://about.homely.com.au/blog/2016/1/19/where-to-invest-in-melbourne-in-2016