Why townhouses?
Apartments can often seem appealing because of the relatively high rental return and proximity to the CBD, but you have to ask yourself what is that main driver of capital growth in an investment property. Land. Detached houses are becoming more unattainable for investors as Melbourne’s median house price approaches the million dollar mark, and the over-supply of apartments coming on to the market means there is restricted opportunity for growth.
What this leaves us with is the option of something in the middle. Townhouses within a 15km radius of the CBD are available with an affordable price tag that give investors the possibility of strong capital growth and are attractive to professionals who commute to the city.