$300-$350,000 Budget for investment property Where to buy?

Doree and Preston

South Morang, Doree, Bundoora, Watsonia, Preston… I think you'll find with some serious research on those areas a rental property is a hard push when you look at the demographics.

I've lived most of my life around these areas, so I'll give you my ideas on the areas:

South Morang – High demand for rentals but in general low quality tenants. If you had a really well presented 3 bedroom property and marketed to a family you may do well if you can find one for that price that will still receive a good return. On a plus – the introduction of the new train line has made the suburb more accessible.

Doreen – Don't even consider it unless your main aim is capital growth. There has been a lot of growth in the area with a new school opening, restaurants and shops being built but there isn't much of a market for rental properties with only 6% of the population renting their home, so expect long vacancy periods between tenants.

Bundoora – Always had a healthy rental market, medium population of students can attribute to this. The last few years have seen the crime rate increase however which has driven a lot of people out of the area.

Watsonia – A lovely quiet suburb. I'm surprised this one hasn't got the attention it deserves! There are plenty of houses needing a little TLC with  large block sizes. The suburb has been known for quite a few years as family friendly with a lot of retirees still residing there. The rental market is healthy for young families, we currently manage a huge property needing a lot of cosmetic work that is still getting a great return for the owners.

Preston – As a property manager I detest Preston properties due to the demographic of low-quality tenants and painful vacancy periods. It is definitely a future growth suburb in terms of development in the future and the land sizes can be great, however stay away from Northland Shopping Centre area when buying to avoid being right next to the commission houses.

Whatever you do, ensure you research, research, research and compare the suburbs. Then do a little more research, and go with the suburb that offers you something that matches your investment plan. If you don't have a plan… get one.

Epping has had a fairly decent rental market for years which has dropped recently with the opening of Mernda's housing estates offering affordable housing.  The crime rate in the older areas and near the shopping centre is shocking, so I agree with you that sticking to a new estate is the best option if you settle for Epping.

The new estates are looking good, one of my colleagues is looking to move there also. The main pointer I would have for you is check the quality and track record of the builder really thoroughly, I wouldn't recommend Metricon as I've heard too many disaster stories from them of late.

When it comes to property management further down the track in this area be extremely thorough when choosing an agent, I'm sure someone will have a different opinion but to me it's historically an area where agents are focused on sales, sales, sales and use very young PMs who are using the position as a side step into sales.