Want to live in a city with laneways, street art, and good coffee? Melbourne is one of the cheapest capital cities to rent a home, say experts. Melbourne's cheapest rental suburbs are listed. Melbourne, Australia's second-largest city, is one of the world's most liveable. It's known for its food, architecture, suburbs, and culture. Some say it suffers from traffic congestion and unpredictable weather that can make residents experience four seasons in a day.
Melbourne is now the most affordable Australian city to rent a house, according to Domain's Rental Report. The median house rent in the city is $430 per week, according to the report. Sydney's median house rent is $580 a week and rising by 5% or more a quarter, while Brisbane's is $460 and rising by 2% quarterly. Melbourne's median rent is $370, while Brisbane's is $410 and Sydney's is $485.
Melbourne's median rent for the September 2021 quarter (houses and units) is $450, just above Adelaide's $440. Tim Lawless, research director at CoreLogic, says Melbourne renters spend less than average. Based on March data, Melbourne was the most affordable capital city to rent, with households dedicating 26% of their gross annual household income to rent, compared with the national average of 28.7%.
Media figures don't tell the whole story. After earlier phases of the COVID-19 pandemic, rents are rising in some suburbs but falling in others. Outer east, south-east, and Mornington Peninsula rents are high. Domain recommends renting in the city. Before demand and prices rise.
Melbourne continues to record weak rental growth, becoming a renters' market closer to the city, a positive for tenants looking for affordable rentals. While overall unit rents are the same as 2015, vacancy rates have continued to decline, suggesting the empty pool of rentals will continue to shrink. Low prices won't last.
Most Affordable Suburbs In Melbourne
Excellent opportunities for real estate investment can be found in a number of the most reasonably priced suburbs that Melbourne has to offer in 2021. If you choose the right postcode, you could reap the benefits of low entry prices, high growth rates, and reliable rental returns.
Where property investors can nab a house for around $600k
- Median house: $603,750
- Median unit: $470,000
Officer is located in the south-east of Melbourne and has a lot going for it, not the least of which is an affordable median house price in the range of $600k and $470,000 for units. When you consider the excellent access to public transportation provided by the nearby train stations and the Princes Freeway, it is easy to understand why investors are keeping an eye on the suburb. In addition, there is a respectable selection of schools, in addition to other essential amenities such as restaurants, shopping centres, and a hospital, which contributes to the area's popularity with families.
When it comes to rentals, houses are currently renting out for $400 per week, with a rental yield of 3.4 percent annually, while apartments are renting out for $370 per week, with a rental yield of 4.2 percent annually. As a consequence of this, officers have recorded a compound growth rate of +13.2% for houses and +4.9% for units over the course of the previous five years.
Melton, which is located 35 kilometres outside of the city, ought to be on your radar if cost-effective housing is the most important factor to you. These are some of the more affordable houses and apartments that can be found in the metropolitan area of Melbourne, with median property prices of $410,000 for houses and $335,000 for units. In addition, the suburb has its own train station, is conveniently located near the airport, and boasts respectable educational facilities.
Over the course of the past five years, the value of houses in Melton has increased by a rate of 10.0 percent, while the value of units has increased by 7.6 percent. When it comes to rental income, you can anticipate receiving $320 per week for a house, which corresponds to a rental yield of 4.1 percent annually. Comparatively, an apartment can be rented for $300 per week, which corresponds to a rental yield of +4.7 percent.
The suburb that's close to everything
- Median house: $565,000
- Median unit: $410,000
Similar to Tarneit, Hoppers Crossing has a lot going for it, particularly for families and well-established, mature couples who don't need to be right on the doorstep of the CBD. Hoppers Crossing is a great place to live for those who don't need to be in the heart of the city. It is 23 kilometres away from the city, in case you need to get to the bright lights of the city. The median price of a house in the current market is $565,000, while the median price of a car is $410,000.
Houses in the suburb rent for $350 per week, while condos and apartments return $315 per week. Houses in the suburb are ideal for real estate investors. Over the past five years, the compound growth rate has been respectable, with houses advancing at a rate of 7.8 percent and units advancing at a rate of 6.4 percent.
Where property investors can buy a house for ~$550k
- Median house: $565,000
- Median unit: $405,000
Pakenham is located 58 kilometres south-east of the central business district, and it has a strong focus on families, with planned estates and an outdoor vibe. But in terms of lifestyle attractions, it has everything you could want, including local primary and high schools, as well as sporting facilities and shopping centres, and the Yarra Valley and the Dandenong Ranges are right on your doorstep.
Where investors can get a house for under $550k
- Median house: $540,000
- Median unit: $400,000
Werribee, which is located between Geelong and Melbourne, has a lot going for it in terms of lifestyle, including river frontage, a zoo, a winery, beautiful parklands, a major shopping centre, and the beach. All of these things contribute to Werribee's appeal. Because there is also a fast train to the Central Business District, the area is well-liked by both families and professionals alike.
Surprisingly, the median price of a home in this area is still less than $600,000, with houses going for $540,000 and units going for $400,000. In terms of weekly rent, houses in Werribee can be rented out for $350, and the annual rental yield for these properties is +3.4 percent. With a rental yield of +4.1 percent, a unit in this location can bring in approximately $315 per week in revenue for its owner. The compound annual growth rates for houses in Werribee are a healthy 9.7 percent, while the compound annual growth rates for units are 6.6 percent.
Investing In Dallas, Melbourne
Affordable investment properties under $500k
- Median house: $488,000
- Median unit: $421,000
In Dallas, houses rent for $348 per week and have an annual rental yield of +3.7 percent, while units rent for $310 per week and have a rental yield of +3.8 percent. In terms of returns on rentals, houses rent for $348 per week and units rent for $310 per week. The growth rates are also healthy, with houses increasing by 8.5% over the past five years and units advancing by 8.3% over the same timeframe.
Leafy lifestyle for families and students
- Median house: $825,000
- Median unit: $620,000
Croydon is located in the eastern suburbs of Melbourne, and it is known for its leafy neighbourhoods, laid-back culture, and excellent educational opportunities, all of which are set against the breathtaking Dandenong Ranges. The neighbourhood is well liked by both families and students, and despite the fact that it is slightly more expensive than the median price in our area, it is still a good value overall.
Snap up an affordable Melbourne apartment
- Median unit: $487,500
Verdant and full of leaves The close proximity to the Central Business District (CBD) as well as the presence of educational institutions make Carlton the ideal location for an apartment investment. In addition to its significant Italian history, the neighbourhood is home to the lively Lygon Street and the neighbouring Brunswick Street, both of which are major lifestyle draws. The walkability of the neighbourhood and the convenience of its proximity to public transportation are two additional obvious selling points.
Tips On Finding A Better Place To Stay
It is an exciting first step in the process of building a new life in Melbourne to decide whether you want to rent a house or an apartment. When you become a tenant, you are subject to a number of rules and regulations that you are required to follow (renters are called tenants). Rules and regulations are also imposed by landlords, who are individuals who rent out their properties to tenants.
Housing Types, Locations And Prices
Beautiful older homes from the Victorian and Edwardian eras sit side by side with luxurious newer homes in Melbourne's dynamic real estate market, which offers a wide range of housing options to meet the requirements of any buyer. In addition, brand-new residential structures, including modern apartment buildings, are constantly being built.
If you are looking for a rental property in Melbourne or anywhere else in Victoria, you will have access to a wide variety of options in terms of both size and design.
Find A Rental Property
In general, real estate agents in Victoria are the ones who are tasked with the responsibility of renting out houses and apartments on behalf of the owners. You also have the option of renting directly from the owner. You also have the option of renting a single room within a property or sharing a house with a group of friends or family members; the type of rental arrangement that you go with is determined by the requirements that you have.
How To Secure A Rental Property?
Once you have selected the subject matter that piques your interest, continue reading. However, first things first, you will need to make sure that your rental property is safe. The following advice will assist in illuminating the steps that need to be taken.
Inspect The Property
Because real estate agents typically will only accept applications from individuals who have previously seen the house or apartment in question, the first thing you should do is make an inspection of the property in question. You have the option of sending a representative in your place if you are unable to personally inspect the property. Not only is it essential for the real estate agent to meet you (or a representative of yours), but it is also essential for you to verify that the property is in good working order. There are three different ways to look at a rental property, which are as follows:
- attend an open for inspection held at a specific time
- make an appointment with the real estate agent
- Collect the key from the real estate agent's office.
- If you are attending an open inspection, you must be prepared to show identification (such as a driver's licence or passport).
Submit An Application
You will be required to fill out and turn in an application before you can be approved for a rental property. The application will typically request information about your previous residences, places of employment, and current income, among other things. If you have ever rented a property before, it is in your best interest to bring written references with you to Australia in case you are asked for them. It is common practise to do so.
Sign A Lease
You are required to sign the lease once it has been determined that all parties are satisfied with moving forwards with a lease agreement. This is an agreement that is legally binding and does not have a period for withdrawing from it (a time that allows you to change your mind). Details such as the following are recorded in a lease:
- how long you can live in the house
- how much rent you must pay and when you must pay it
- Whether there are any special conditions about your home (such as keeping pets).
Completely read through the rental agreement. If there is anything about which you are concerned or about which you have questions, you should discuss these concerns or questions with the landlord or the real estate agent. Before you sign a lease, you and your real estate agent should discuss and document in writing any problems that already exist with the rental property, and then you can move on to the next step of the process, which is signing the lease. The date that was agreed upon and written into the lease will mark the beginning of your rental period.
Connect Utility Services
After putting your signature on a lease, you will be considered a bona fide tenant of the rental property. It is appropriate to offer congratulations. You are the one who is responsible for connecting the necessary utility services, which may include electricity, gas, water, the telephone, and the internet.
Pay A Bond
A bond is a payment that you make that serves as security for the landlord or owner against you if you don't meet the terms of your lease agreement. You are responsible for paying the bond. For instance, if the rental property sustains damage while you are occupying the property, the landlord has the right to retain some or all of the security deposit in order to cover the cost of repairing the damage.
The cost of the bond is typically equal to one month's to six weeks' worth of rent. The Residential Tenancies Bond Authority will hold onto your security deposit until you have moved out of the property under their jurisdiction. The security deposit that you paid will typically be returned to you when you move out, less any costs that were incurred as a result of cleaning or repairs that were your responsibility.
Now, renting a home in Melbourne costs less than in any other major Australian city. Domain's Rental Report found that the typical weekly cost of a house in the city was $430. The median weekly house rental in Sydney is $580, with quarterly increases of at least 5%. Officer in Melbourne has a median house price of $600,000, with a median unit price of $470,000. The suburban area is equipped with its own train station, is close to both the airport and the city's educational institutions, and has attractive housing options.
These are a few of the more reasonably priced Melbourne homes and condos currently available. The distance between Hoppers Crossing and Melbourne's central business district is 23 kilometres. Houses in the area have a median price of $565,000. Pakenham is 58 kilometres south-east of the central business district. It was designed with families in mind, so there are plenty of spacious homes and plenty of green space. Rental yield in Dallas is +3.7% per year on a weekly rental rate of $348.
The residential areas of Croydon are well-known for their lush greenery, and the city as a whole is praised for its relaxed atmosphere and high quality of life. If you're looking to buy an apartment in Melbourne, Carlton is your best bet. The state of Victoria is home to a large number of rental properties, and Melbourne is no exception. The following tips will shed light on the procedures that must be completed before renting a home or apartment in the state. Once it is determined that all parties are content, you will be expected to sign the lease.
You're the one who needs to hook up the utilities. Landlords have the legal right to keep all or part of a tenant's security deposit in the event that the rental property incurs damage while the tenant is occupying the property.
- Experts agree that Melbourne has some of the most affordable home rental prices among major cities.
- The suburbs of Melbourne with the lowest monthly rental costs are presented.
- Second largest city in Australia, Melbourne, is consistently ranked as one of the world's most liveable cities.
- Its cuisine, buildings, suburbs, and way of life have all made it famous.
- According to Domain's Rental Report, Melbourne is now the most cost-effective Australian city in which to rent a home.
- According to the data, the average weekly rent for a house in the city is $430.
- Brisbane's median rent is $460 per week, and it's increasing at a slower rate of 2% per quarter, while Sydney's is $580 per week and rising by 5% or more every quarter.
- Officer, situated to the south-east of Melbourne, is a desirable area due in no small part to its relatively low median house price of $600,000 and median unit price of $470,000.
- If you're looking for cheap housing, the suburb of Melton, situated 35 kilometres outside of the city, should be on your list of potential new homes.
- The value of houses in Melton has increased by 10.0 percent over the past five years, while the value of apartments has increased by 7.6 percent.
- Hoppers Crossing, like Tarneit, is a great place to live if you don't need to be in the heart of the city. This is especially true for families and well-established, mature couples.
- If you don't have a pressing need to be in the middle of the action, Hoppers Crossing is a wonderful place to call home.
- In today's market, a median priced home can be purchased for $565,000. The median priced vehicle, however, can be purchased for $410,000.
- Prices for suburban homes range from $350 to $350 per week, while those for condos and apartments average $315 per week.
- Suburban homes are a good bet for those looking to build a real estate portfolio.
- Spreading Your Bets Over Dallas and Melbourne
- Investment properties under $500,000 that are within reach
- Average home price: $488,000
- $421,000 for the median home
- It's possible to earn a rental yield of 3.7% per year on a home in Dallas by renting it out for $348 per week, while a rental yield of 3.8% can be earned on an apartment in the city by renting it out for $310 per week.
- Suggestions for Locating a More Desirable Lodging Situation
- Making the choice between a house and an apartment to rent is an exciting first step in the process of establishing a new life in Melbourne.
- It is possible to find a rental property that suits your needs in both size and style in Melbourne or elsewhere in Victoria.
- But first things first, you need to guarantee the security of your rental property.
- Once it is determined that all parties are content with proceeding with a lease agreement, you will be required to sign the lease.
- After signing a lease, you'll have legal standing as a tenant of the building.
- Give a Bond Payment
- If you don't pay rent on time or otherwise violate the terms of your lease, your landlord or the building's owner can use the money you paid as security.
- In this case, the bond is your financial responsibility.
FAQs About Place To Rent In Melbourne
Melton is the cheapest suburb in Melbourne with a median house price of $410,000 and tops the list as the most affordable suburb in Melbourne, followed by Melton South ($441,000), Cobblebank ($545,000) and Kurunjang ($445,000).
Adelaide is the cheapest place to rent in Australia, but Melbourne renters are also winning as prices have barely increased in the past 12 months.
Latest Domain figures show sharply diverging fortunes, with 3.8 per cent of homes for rent in Melbourne empty of tenants in August, up from 3.7 per cent the previous month, compared to a steady 2.6 per cent in Sydney.
What is the average rent in Melbourne? The average rent in Melbourne per week is $440 for houses and $400 for units, according to a Domain rental report (September 2020). This is a 2.3% increase for houses since the previous quarter and a drop of 3.6% for units.
Sydney's average monthly rent is somewhat higher than Melbourne's. Across the cities and surrounding areas, the average monthly rent is around $2340 ($540 per week) in Sydney and $1733 per month ($400 per week) in Melbourne.