Over the last year, property investments in Baxter, 3911 have given investors a capital gain of 6.25%. This compares very badly with the 14.59% for VIC as a whole.
Taking the average capital gain, or increase in median house value, Baxter,3911 has racked up an average of 6.25% over the period. This ranks it number 2641th in the whole country for real estate investors looking at median house price increases.
Advertised rents are around the $440 mark per week – giving a return of 3.85% based on the median price in Suburb
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Fringe suburb leverages its affordability
Median house price: $420,000
Three-year growth: 28.83%
Rental yield: 4.33%
On the outskirts of Melbourne’s urban district, Baxter may be regarded as a rural suburb, but it certainly shows as much potential as its city counterparts.
In fact, this distinction may be working to Baxter’s advantage as house prices are quite low here – a median of under $450,000. Thus, for many buyers, it could be a solution to Melbourne’s affordability problem. It is just an hour’s drive to the CBD – a move that residents may be willing to make to save on housing costs.
As a result, the suburb has been reporting consistent growth for the past 5 years at an average annual rate of 7.5%. At 4.3%, investor returns are considerable as well. Baxter is served by a railway station, as well as buses. There are also several primary schools and a kindergarten for families with young children.