A new study has found the suburbs of Tyabb, Belgrave and Tecoma are Melbourne’s best for property investors with over $100,000 for a deposit on a home worth up to $1 million.
Those top three yielded the biggest rental returns in the study, which looked at every Victorian suburb and their suitability for investors.
The report was compiled by Eventus Financial to find the best property investment locations around Victoria for stand-alone houses.
Sandhurst and Bittern were the next best suburbs, with all of the top five returning an annual rental yield between 2.9 and 3.6 per cent on a three bedroom home.
Eventus Financial chief executive Alex Veljancevski told realestate.com the findings showed that if investors were prepared to think outside the box they could snare a great investment in a desirable location for less than $100,000 deposit.
“If you want to put down a 20 per cent deposit on a house close to the centre of Melbourne, you’ll need much more than a $100,000 deposit,” he said.
“But if you’re willing to be open-minded about your loan-to-value ratio and location, you can definitely buy a good investment property.”
Those suburbs that had a median price over $1 million for a three bedroom were not included in the list.
TOP 10 VICTORIAN SUBURBS FOR INVESTORS WITH $100K DEPOSIT
Suburb, median price (three-bedroom house), 10% deposit, yield
Tyabb, $715,000, $71,500, 3.6%
Belgrave, $755,000, $75,500, 3.4%
Tecoma, $815,000, $81,500, 2.9%
Sandhurst, $950,000, $95,000, 3.1%
Bittern, $785,000, $78,500, 3.3%
Somerville, $790,000, $79,000, 3.3%
The Patch, $760,000, $76,000, 3.1%
Belgrave Heights, $875,000, $87,500, 3%
Monbulk, $740,000, $74,000, 3.1%
Coldstream, $762,000, $76,200, 3.1%