Based on the results of the latest research findings, as of last June, property prices in Melbourne grew more than twice the national average value. Figures released by the Australian Bureau of Statistics (ABS) shows that the value of intermediate residence in Melbourne grew by 8.2% in the last 12 months. CoreLogic also reported that the index of home values Melbourne rose as much as 2.3%.
Statistical data from the Real Estate Institute of Victoria (REIV) show that the median value of the property in Inner Melbourne until last June quarter totaled $ 1,270,000 and $ 550,000 for a house and a unit respectively. This figure is unlikely to go down in the near future, especially due to the lack of property stocks in the market today.
Therefore, if you’re in a position where everything seems to be out of your reach, do not worry! Our team has put together some interesting tips that can help you get your family dream home.
- Buy an Apartment!
If you are still single and in the middle of pursuing your career, buying an apartment is one of the options that you can definitely take into account. Stock for units in the Melbourne CBD at a price below $ 400,000 can still be found for one-bedder. This property can later be rented out when you want to start a family and move to a larger residence. The option of buying an apartment is not only popular among the singles, but also those (young couples) who are married but do not have a child yet. Furthermore, other than safe and easy to maintain, an apartment can give them the ease and comfort to secure a larger mortgage when they have to move to a larger residence, as the value of the apartment (assets) which will certainly rise after several years.
- Melbourne CBD is not always the best
Whether it is the best option or not depends on your needs, which are not the same for everyone. If you are a professional who work in the city and do not have a problem with the bustling activities and traffic around Swanston, Collins and Bourke St, Melbourne CBD can be the right choice to purchase your property because of its easy access to public transport and various entertainments. Conversely, if you are starting a family and want a residence closer to educational institutions such as elementary school or high school, then areas like Springvale (median price of $ 680,000) or Clayton and Wheelers Hill (median price of $ 1,000,000) can be considered.
- Eastern Suburbs
Regions Melbourne Eastern Suburb is indeed one of the areas popular among first time home buyers, in addition to its steady growth rate, Eastern suburbs have a wide range of facilities available to the population from complete access to public transportation, excellent public service facilities and also numerous local markets and shopping centres in every suburb. Eastern suburbs are a solid investment choice, although the median price relatively higher than other suburbs. Another great way to secure a property in the Eastern suburbs is by buying a rather older property and renovate it at a more efficient cost.
- Inner West Suburbs
West Melbourne area, such as Yarraville and Seddon, have recently been favoured by home buyers. The buying activity became stronger due to the increasing number of quality and large houses as well as its prime location. Quoted from the Herald Sun, a 3 bedroom house in Thomastown which has an area of 605sqm was sold for $ 585,000, whilst a similar property in Reservoir was sold over $ 668,000.
- Take advantage of the low interest rate!
Low interest rates results in the lower mortgage payments for homeowners. Keep in mind that the mortgage payment is one of the largest expenditure items for the homeowners. The drop in interest rate means lower interest rate.
But the most important thing above all is to conduct a thorough research and planning! Try to avoid making decisions based on limited and incomplete information. There is no set time or period on how long you should spend researching and planning your strategy. Some people can make decisions that they believe or feel comfortable in just a few days, while for a few others it might even take many years. Another thing to consider is your feeling towards the properties in your consideration list. Because in the end, you will be the one living in the house, and it is most important to ensure that you are happy with your final decision.
Source: Herald Sun, Your Investment Property Magazine, Domain News, RPData CoreLogic