How to Choose the Right Investment Property in Australia?

By Subhash Godara & Property Advisory Team

Investing in real estate can be one of the most rewarding financial decisions you’ll ever make. But let’s be honest—it can also be overwhelming. Whether you’re looking at investment properties in Melbourne, rural properties in Victoria, or commercial spaces in Melbourne CBD, choosing the right property requires thorough research and strategic decision-making.

If you’re wondering where to start, don’t worry! This guide will walk you through the key factors to consider when investing in Australian real estate, helping you make an informed choice that aligns with your financial goals.

1. Define Your Investment Goals

Before diving into the property market, ask yourself: Why am I investing?

Do you want steady rental income from rental properties in Dandenong?
Are you looking for long-term appreciation, such as luxury homes for sale in Melbourne?
Is your goal to develop and resell, targeting Melbourne property developers?

Having a clear objective will help narrow down your search and identify the best real estate agents in Melbourne to assist you.

2. Choose the Right Location

Location is everything in real estate. Here are some top spots to consider:

Melbourne Inner-City Apartments: High demand, strong rental returns, and excellent capital growth.
Rural Properties in Victoria: More affordable with long-term appreciation potential.
Commercial Property for Lease in Melbourne: Ideal for business owners and investors seeking rental income.
Properties for Sale in South Melbourne: A vibrant area with increasing property value.
Land for Sale in Mornington Peninsula: A great option for those wanting to build from scratch.

Looking for investment opportunities outside Melbourne? Consider property investment opportunities in Bendigo, where market growth is steady and affordable.

3. Understand Market Trends

Real estate is dynamic, and market trends change frequently. Here’s what you need to consider:

Supply & Demand: Are people looking for rental properties in Dandenong, or are commercial spaces in Melbourne CBD seeing more demand?
Interest Rates: Lower rates make property investment more attractive.
Government Incentives: First-time home buyer programs in Melbourne can help ease the financial burden.
Infrastructure Developments: Areas with upcoming developments, like Ballarat, often see increased property value.

Statistic: The Australian Bureau of Statistics (ABS) reported a 14.6% increase in new dwelling approvals in Victoria over the past year, indicating strong market growth.

Speaking of Ballarat, if you're looking for real estate services in Ballarat, working with experienced agents can help you find lucrative investment opportunities.

4. Property Type Matters

There’s no one-size-fits-all investment. Consider these options:

Residential Properties

Luxury Homes for Sale in Melbourne: Best for high-net-worth individuals seeking long-term capital appreciation.
Affordable Rural Properties Near Melbourne: Ideal for investors looking for lower entry costs.
First-Time Home Buyer Programs in Melbourne: Beneficial if you plan to live in the property first before renting it out.

Commercial Real Estate

Commercial Property Sales: Perfect for businesses or investors wanting long-term rental income.
Commercial Real Estate Investors: If you have the capital, this can offer strong returns.
Estate Management Services Melbourne: Need help managing multiple properties? Professional estate managers can handle the workload.

Land & Farms

Farm Land for Sale in Victoria: Excellent for agricultural investment or future development.
Acreage for Sale: Ideal for those looking for larger plots of land with long-term appreciation potential.
Farm Property Management in Victoria: Professional management ensures your land is used effectively.

Rural properties in Victoria have seen a 10% increase in median prices in the last 12 months, according to Domain.

5. Work with Professionals

Finding the best real estate agents in Ballarat or Melbourne can make a huge difference in your investment success. A good agent will:

Provide insights on market trends.
Help negotiate the best deal.
Offer guidance on legal paperwork.

If you're new to investing, a Melbourne Property Investment Advisor can help you understand the risks and rewards, ensuring your money is placed in the right property.

6. Consider Rental Yield and Capital Growth

Before making a purchase, research the rental yield (percentage of rental income compared to the property's value) and capital growth potential (the expected increase in property value over time). Areas like Geelong and Dandenong offer strong rental demand, making them excellent choices for long-term investors.

The average rental yield in Melbourne is currently 3.5%, while regional areas like Geelong offer yields up to 5.2%, according to SQM Research.

7. Know the Selling Process

If you’re investing to resell, it’s crucial to understand the process of selling a house in Melbourne. Here’s a quick breakdown:

Get a property valuation.
Prepare your property for sale (renovations, staging, etc.).
Work with real estate consultancy Melbourne services.
Market the property effectively.
Close the deal with the help of a real estate lawyer.

Having a strong marketing strategy is key, and services like project marketing for real estate developers can help boost visibility.

8. Diversify Your Portfolio

If you’ve already invested in luxury property investors Melbourne, consider diversifying into other sectors like commercial spaces, farmland, or regional properties in Victoria and Bendigo.

Conclusion: Make the Right Investment with Goldfish Real Estate

Choosing the right investment property in Australia requires careful planning, market research, and expert guidance. Whether you’re exploring rural property sales Victoria, commercial real estate investors, or first-time home buyer programs Melbourne, understanding the market dynamics will help you make informed decisions.

Looking for expert guidance? Goldfish Real Estate specializes in helping investors find high-return properties across Melbourne, Ballarat, Bendigo, and beyond.

Contact Goldfish Real Estate today and start your journey toward a profitable property investment!

Invest wisely, plan strategically, and make the most of the booming Australian real estate market!

Disclaimer: Research is based on Goldfish Real Estate's general information and do not constitute any representation. Similarity with any other online resources available is not our responsibility and do held any liability.

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As Landlord, now also called “Rental Provider” the most common questions and concerns, which you always like to know. We are having the most common questions and concerns based on feedback from our valuable landlords and rental provider.

As a landlord, for Rental properties, Are there any minimum standards?

Yes, the minimum standards apply to rental agreements that started after 29 March 2021 or started before 29 March 2021 and roll over into periodic agreements on or after 29 March 2021. Minimum Standard as defined in Consumer Affair Victoria.

For definition, updates & explanation, click here: https://www.consumer.vic.gov.au/housing/renting/repairs-alterations-safety-and-pets/minimum-standards/minimum-standards-for-rental-properties

What are mandatory safety check requirements in Victoria?

From 29th March 2021, Rental providers have responsibilities for smoke alarms, gas, and electrical safety reports that have not been compliant and can incur a fine. These reports need to be submitted to Consumer Affairs by the 29th of March 2023 as the certificate of currency needs to be updated on the portal to ensure compliance. This must be provided by you or your appointed Registered Trade Contractors to us, fail to supply this can incur a significant fine.

Smoke Alarms must be every year; Gas & Electricity Safety checks every two years from Registered & Licensed Trade Contractors as per the act.

Should I have an insurance Policy for my investment property?

As the property owner, it is your responsibility to maintain insurance over the property with a minimum of $10 million public liability and appropriate Building Insurance. Ask your insurer to provide a certificate of currency and policy documents.

We strongly recommend having a Landlord Protection Insurance Policy to protect any risk associated as an investor for a variety of tenancy-related issues.

At Goldfish, can’t recommend an insurer, but we can point you in the direction of some of the commonly used insurance companies.

When and how do I get paid?

At Goldfish, we disburse the rental payments to your nominated bank account within three to five business days of us receiving the rent unless there are expectations of any bills, maintenance invoices, etc. We deduct our fee and any bills from the rental amount and provide you with an itemized statement.

Can you pay the bills on my behalf?

Yes, we recommend setting up all your bills like Council Rates, Water Rates, Land Tax, Insurance Policy, Body Corporate Levy Charges, and Maintenance Invoices with us on your behalf. We do not charge any extra fee at this stage. This makes your end-of-year tax return so much easier at once place with our EOFY Statement.

Our team can coordinate the set-up of this on your behalf with Councils, OC, other Authorities & tradespeople, some Councils, and businesses may require you to complete a form in the first instance authorizing us to make future payments.

Do I have to provide NBN/FTA TV connection?

Yes, you need to pay for the initial set-up costs for NBN or Free to Air (FTA) TV connection to the property.

You may be required to replace the battery if required. The battery is installed by NBN as a backup to ensure ongoing access in the event of power failure.

What types of most common fees occur when leasing out the property?

There are most common fees and charges are:

Letting Fee: Depends from agency to agency, but the most standard fee is equivalent to 1.5 – 2 weeks' rent;
Advertising Fee: This is a third-party cost and depends on advertising material, contents, and channels used by the agency. This can start from $550 onwards;
Management Fee: A commission percentage of the weekly rental figure. It depends on the agency to the agency; the standard fee varies from 5% to 8% plus GST.
Administration Fee: It depends on the agency to the agency. Which includes any posted letter to the renter, landlord, or other departments;
Statement Fee: It depends on the agency to the agency. Can be from $2 to $4 per month.

If something goes wrong then all third parties’ expenses are on you such as Notices, VCAT applications, Orders, Possessions, and so on.

Can I change property manager or agency during the mid of the lease?

Switching property managers may seem difficult, but as Consumer Affairs Victoria notes, the process is not strenuous. “In most cases, you can terminate your estate agent’s management of your rental property, effective immediately, by written notice to the agent,” the authority notes.

One of the most common things we hear about is people feeling that they are stuck with a property manager that doesn’t suit their needs, with no means of exiting the arrangement. Yes, by all mean you can change property manager, usually there is no fee unless mentioned prior.

There are so many questions and information which as a landlord need to ensure the return on their investment. If you like to know something else, we are just one call away, call on us at 03 9266 0270 or email at [email protected] for a confidential discussion.

Disclaimer: Above information given is for general information only and does not constitute any representation on the part of the landlord or rental provider/s. All parties must do their own assessment or investigation.

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