As our population gets older, people need to be considering how they are going to fund their retirements, given that there is no guarantee that any pensions will be available for us when we retire and our superannuation is losing value on the stock market day by day.

With Melbourne's property market following the national trend of a stabilisation phase that's set to continue into the foreseeable future, its paramount for investors to consider potential long-term real estate prospects based on their overall historic performance.

Stick to property investing fundamentals and ignore opinions as to where the market is going, whether good or bad. Buying strong investment properties is more about asset selection rather than timing. Timing is impossible to consistently get right.

Don't wait for the right time to buy. Wait for the right property to buy.

The important thing at all times is to focus on the value of the land, because it's land that you can't create more of. The scarcity of land is what drives property prices, so investor should seek properties with more land value as well as some scarcity or uniqueness.

Affordability. Melbourne residential and investment property sector is performing well and is predicted to continue doing so. Here are some reasons why: Melbourne home prices are rising from a lower base providing a higher proportionate gain.

Pent up demand. Many leading economic forecasters believe there is an undersupply of new housing in Victoria.

High consumer confidence motivates people to make more long term decisions such as purchasing a new home.

Improved immigration numbers. Melbourne's population is now increasing at a faster rate than many other capital cities leading to an increase in the demand for housing. Population growth is around 4%.