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Melbourne Hot Spots - Outer Melbourne

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The problem with newly developed areas are that once new houses come onto the market, your 5 year old homes lose value in short term compared to the newer houses. So keep in mind you may need to keep for several years.

I nearly bought in Tarneit 2 years ago - 6 month old standard 3 bedroom house where owner was forced to sell, it was going for $230K and I just missed out on my offer. Rental yields are good etc but it is mortgage belt but that has never worried me because I believe the right cheaper house in the suburbs can give you good returns.

I ended up also looking at Hoppers Crossing and Werribee and bought in Werribee. Tarneit median price is higher than Werribee but the growth has been slightly higher in Werribee.

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