Melbourne rental rates are on the rise

Researching where next to invest in Melbourne is a critical stage in any investment, and the latest figures from CoreLogic RP Data could give you some interesting reading. February’s Rent Review showed that capital city rates were up 2.2 per cent in Melbourne from a year earlier, offering steady returns to investors.

Compared to the previous month, rental costs were up 0.2 per cent, while the quarterly rise registered at 1 per cent. At the moment, investors can be expecting yields of around 4.3 per cent.

Carry out research into Melbourne’s best suburbs

It’s also worth researching the type of real estate you have your sights set on. This will give you an idea of where you can expect to receive the highest yields and demand for your rental property.

Yields for houses stand at 2.9 per cent in the Victorian capital, CoreLogic RP Data noted, while for units the result stood at 4 per cent. Results such as these might help shape your investment portfolio over the coming months.

Meanwhile, SQM Research has shed light on vacancy rates throughout the city. In February, the group acknowledged that 2 per cent of homes were without tenants – lower than the national average of 2.3 per cent.

Managing Director of SQM Research Louis Christopher said: “Melbourne, Hobart and Canberra are all recording downward trends in vacancies now and this is resulting in upward pressure in rents for these three cities.”

Moving up the investment ladder

For help making your next investment property a success, be sure to speak to the team at Nelson Alexander. With many years’ experience in the local area, we can help you find a rental prospect in one of Melbourne’s best suburbs.