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Melbourne property prices grow above household income

By Jamil Allouche

There are many factors that need to be taken into consideration when buying rental property in Brunswick, and one of them is how much your investment is likely to appreciate by.

Melbourne could soon be facing an influx of investors, as analysis from the Reserve Bank of Australia (RBA) indicates that price rises are among the strongest the country has to offer.

The majority of cities saw their property values increase rapidly late in 2013, but they have started to plateau ever since.

Melbourne was an exception to this rule, as its value rises have remained well above the growth that most people have seen in their household earnings.

"A range of indicators, including residential building approvals, suggested further growth of dwelling investment in the near term," said RBA governor Glenn Stevens.

It's hardly surprising that more people are likely to see what Melbourne and its suburbs have to offer, especially if price rises have recently been as strong as the RBA indicates.

This isn't a recent trend, either, as the CoreLogic RP Data Home Value Index shows that values in the city increased 50 per cent between January 2009 and the same month of this year.

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