What is an investment-grade property in Melbourne and where can you buy for your budget?

There are two very frequently asked questions in real estate. The first is what counts as a “good” investment property, also known as investment-grade stock. The second is the damage that securing one of these properties will do to your back pocket.

Of course, this differs from city to city. Wakelin Property Advisory, who specialise in the Melbourne market, have answered these two questions for one-bedroom apartments, two bedroom apartments and two bedroom houses.

Firstly, they note that the property must be in a high land value location, close to transport, schools, village-type shops, restaurants and recreation activity and must be on an attractive street with architecturally consistent streetscape.

These are the non-negotiable aspects when they property hunt.

Richard Wakelin notes that this is so you can ensure somewhere with consistent, historical growth and that has the crucial scarcity factor.

So how much do you need to scrape in to purchase these types of property?

Wakelin notes that $400,000 is the starting point (if you aren't yet at this capacity, the video below includes some tips for starting out on less).

This nets a one bedroom apartment within the inner north that fulfils the above criteria.

Suburbs for a $400,000 budget (inner north):

1. Carlton North
   
   
2. Brunswick
   
   
3. Kensington
   
   
4. Flemington
   
   
5. Ascot Vale

Suburbs for a $450,000 budget (inner bayside apartments):

1. Elsternwick
   
   
2. Elwood
   
   
3. St Kilda
   
   
4. St Kilda West

Suburbs for a $450,000 budget (inner eastern suburbs apartments):

1. Hawthorn
   
   
2. Toorak
   
   
3. South Yarra

Higher budgets:

• $600,000: Can net you a two-bedroom apartment in the inner north

• $650,000: Can net you a two-bedroom apartment in the bayside and inner eastern suburbs
  
  
• $700,000: Can net you a single fronted two-bedroom cottage in the inner north
  
  
• $800,000: Can net you a single fronted two-bedroom cottage in the bayside and inner eastern suburbs

You can watch the video below for more of Richard Wakelin’s thoughts on investing in Melbourne and what to do if your budget doesn't yet stretch to $400,000.

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