05/06/2026
We recently assisted our clients in securing this outstanding investment property through their SMSF.
Since 2006, we've been actively acquiring inner-city townhouses close to Melbourne's CBD, and one property type has consistently outperformed the rest: well-located three-bedroom, two-bathroom townhouses. Time and again, they have delivered some of the strongest capital growth and rental returns in the market.
For this purchase, our clients had a budget range of $800,000 to $1 million. Based on our research and auction strategy, we set a maximum bidding limit of $951,000. We anticipated strong competition from first-home buyers utilising the government's Home Guarantee Scheme, where purchase price caps effectively created a natural ceiling around the $950,000 mark.
With a clear plan and disciplined ex*****on, we secured the property with our final bid of $951,000.
Why do properties like this perform so well?
The answer is simple: they appeal to both investors and owner-occupiers. While rental returns are important, long-term capital growth is typically driven by owner-occupier demand. Properties that attract families and owner-occupiers create deeper buyer competition, which supports stronger price growth over time.
By comparison, many one and two-bedroom apartments appeal primarily to investors. When resale time comes, buyers often focus solely on rental yield and return on investment, which can limit capital growth and reduce buyer demand.
When purchasing an investment property, the exit strategy should be just as important as the entry strategy. Future resale appeal should always form part of the decision-making process.
If you're aiming for above-average investment performance, you need to buy above-average assets. Quality properties generally require a higher initial investment, but they are often the ones that deliver superior long-term results.
What attracted us to this property?
• Walking distance to two shopping centres
• Excellent public transport access
• Close to Walter Reserve, parklands and sporting facilities
• Easy access to the Maribyrnong River and its walking and cycling trails
• Ascot Vale Leisure Centre
• Minutes from Flemington Racecourse
• Surrounded by quality cafes, restaurants and local pubs
• Approximately 7km from Melbourne's CBD
Location, lifestyle and strong owner-occupier appeal make this the type of asset we believe can continue to outperform over the long term.
If you're looking for sound, evidence-based property investment ad