The latest figures from RP Data show that Melbourne investment properties as a whole are heavily negatively geared, with the city-wide median rental yield for houses a whimsical 3.8%.
This figure is the lowest among all Australian capital cities, despite Melbourne rents being higher than the national average.
Median rental yields in the unit market are not much better, with Melbourne also the lowest yielding unit market among capital cities.
At a more local level, roughly a third of Melbourne suburbs with detached housing have a yield of 3% or lower on houses, with 8% of unit markets fitting the same description.
The city’s lowest yielding market is currently East Melbourne, where the median yield for houses is just 1.9%.
More affordable Melbourne areas with poor yields include the Banyule and White Horse areas.
Can you afford to buy in this suburb? Find out how much you can borrow
Top Suburbs :
Get help financing your investment
Do you need help finding the right loan for your investment?
When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.
Just fill in a few details below and we'll then arrange for a local expert Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus, our mortgage broking service is at no cost to you.
We value your privacy and treat all your information seriously - you can check out