Waiting to Buy Property in Melbourne? What You Need to Know Now
Why would you want to buy property in Melbourne? Answer: why wouldn’t you? Whether it’s a home to live in or an investment, there are loads of people out there itching to find property in this beautiful city. Brad Esposito, a BuzzFeed reporter in Australia said it well, “To live in Melbourne is to curse everywhere else you live for the rest of your life.” A thriving hub of culture, from food to music to arts and sports, the city’s location provides its residents with easy access to some of the world’s best urban living and nature. Convinced yet? Hold your horses. There are things you need to consider if you want to buy property in Melbourne.
1. Prices in Melbourne are Rising by ~10% Per Year
This indicates that the property market in the city is red hot and it’s no surprise considering Melbourne was awarded the world’s most liveable city for 6 years straight. There is a high level of competition for purchasing property both from homeowners and investors who want to take advantage of the strong property market. More and more people are buying property in Melbourne for investment purposes, therefore expect that it may be tough. If you’re contemplating buying a home, don’t spend too much time thinking about it or you may be priced out of the market.
2. Several Suburbs are Still Couple-Budget-Friendly
Many areas across Melbourne are pricey and may be too much of a financial stretch to take on for individual buyers. However, there are a number of suburban areas that are still affordable for couples, which could be ideal for those looking to buy property in Melbourne and perhaps start a family. A word of advice to couples who are thinking of purchasing a home together: there should be an agreement of what would happen to the property should the relationship fail to last. Also, be sure to make your buyer’s agent aware of this agreement.
3. Lending Conditions in Australia are Better than Ever Before.
Since 2015, the Reserve Bank of Australia has been cutting interest rates which has encouraged a healthier real estate market in Melbourne and other parts of the country. The interest cuts have reached a record-breaking low of 1.5%. Essentially, this is good news for prospective homebuyers and investors looking to buy property in Melbourne. Data collected by the Australian Bureau of Statistics indicate that with lower interest rates, more buyers have been able to acquire homes. Furthermore, property investment in Melbourne and other cities has picked up as more investors enter the market.
4. Supply is Declining
There’s a new trend in property acquisition. Homeowners aren’t waiting for buyers to procure their current residences before making a new purchase. They’re now buying first before deciding whether or not to give up their current home. Therefore, as supply declines, so do your opportunities to purchase. Plus as demand increased, expect prices to also increase.
6. Your Decision will Require Trade-Offs
Settling for a smaller abode or choosing not to buy at all would allow you to enjoy other comforts the city has to offer. Some younger couples are choosing to settle for small apartments so they can save more of their money while still being able to appreciate activities such as dinners out with friends. After all, the reason you would want to buy property in Melbourne is to experience the city, right? Others prefer to sacrifice their lifestyles now and pursue the long-term investment of a home. It all depends on what your goals are and what you’re comfortable with.
Whatever your reason is for owning real estate in Melbourne, whether for personal use or investment, it will undoubtedly be a decision that will pay off in the long-term. For more information on how to buy property in Melbourne contact the team at Property Mavens. Our experienced buyer’s agents will provide you with the advice and guidance you need.