Why Invest in Rosebud Real Estate Rental Properties?
If you’re looking for an investment property, why should you look at Rosebud and nearby suburbs? A look at the data will tell you why Rosebud and the Mornington Peninsula is a great place to invest.
A cursory look at rental yields suggests that Rosebud is an average place to invest. Rental yields in Rosebud average about 4.4 percent. That’s not bad at all, but you may be able to find a higher rental yield in another suburb. However, rental yield is only one reason for choosing an investment property.
Rosebud Real Estate is a Good Investment
Many investors have looked at rental yield alone and been disappointed however, you need to consider the growth of the value of your property. In some areas, prices have topped out and you can’t expect the property you buy to increase in value.
In Rosebud, that’s not the case,Rosebud real estate has been growing in value:
• In 2012, the median house price was $372,000
• In 2013, it was $390,000
• In 2014, the median price was $395,000
• In 2015, the median price was $412,000
• In 2016, the median price was $460,000
Notice how median prices in Rosebud have surged since 2014.
The reason for this surge is that many people are discovering the Mornington Peninsula and part of the reason for this is improved connectivity to Melbourne. You can now get to the Mornington Peninsula in an hour.
Another reason why more people are buying in Rosebud and prices are going up is the high cost of real estate in Melbourne.
According to the Financial Review, this is the reason why rental yields for houses and apartments are increasing in the suburbs.
According to the same article, “gross rental yields for Melbourne and Sydney are the lowest in 10 years.” Right now, they’re around 2.5% and more rentals are coming onto the market. It is a renter’s market in the big cities.
Why You Should Look at Mornington Peninsula Real Estate Investments?
Rosebud is just one example of real estate on the Mornington Peninsula. According to the Melbourne Sun, the Mornington Peninsula, once considered the “ugly duckling” in the Melbourne area, is now emerging as the “real estate swan.”
Some reasons for the transformation include:
• Lifestyle
• Improved transport links
• Government spending on infrastructure, education and health services
The Sun pointed out Rosebud West (now Capel Sound) as a great investment opportunity.
“Seven suburbs in the region enjoyed rising sales number over the most recent quarter, led by Rosebud West and Sorrento,” the article says.
It goes on to say another 10 Mornington Peninsula suburbs enjoyed double digit price growth over the past year.
In Capel Sound, the median house price is $434,000, rental yields are around 4 percent and rental demand is high. In the past five years, house prices have increased by 17.8% which equates to a 3.3% annual increase.
Do you need more reasons to consider Rosebud and Capel Sound real estate?
Read our blog, Invest in Rosebud and Capel Sound Real Estate that lists five good reasons:
1. Low Real Estate Prices
2. Lifestyle
3. Restaurants Galore
4. Schools and Health Facilities
5. Shopping and Other Amenities
You may invest in a Rosebud rental property this year.
With all the advantages of living on the Mornington Peninsula, you may decide to move into your rental property next year or when you retire.
Your investment in a rental property will pay off in the form of a better, more relaxed lifestyle on the Mornington Peninsula.
If you would like more information please feel free to contact me.
If you are considering buying or selling a property on the Mornington Peninsula, and want to know what has recently sold so you can get an idea of where the market is, you candownload our FREE reporthere.
