For the past few years, Melbourne, Australia has been named by the Economist Intelligence Unit as one the best places in to live in the world. This has spiked interest in property investment in Melbourne. If you have decided on buying a house in Melbourne, there are some things that you need to keep in mind to have a worry-free venture into the city’s property market. Let’s take a look at them in this post.
Overview of Melbourne Market
Being one of Australia’s major cities, Melbourne is considered as a hot property market. Below is a snapshot of the property market situation in the city.
- The property market in Melbourne up to the end of the year was impressive, with a double digit growth of 10.10 percent up to November 2017.
- Around September 2017, the median house price is at $880,902, while units cost $506,334.
- Compared to the previous five years, the city’s property values have gone up by more than 55%, making suburbs in Melbourne cost $1 million at a median price.
- The gross rental yield in Melbourne is now at 2.7 percent, which is the lowest in the country. This means that even as dwellings continue to grow, vacancy rates are still tightening.
Selling Homes in Melbourne
Homes in Melbourne are sold via private sale or auction. Through both sales, you can make an offer to the vendor.
- In a private sale, you can purchase property at the advertised price or at the price negotiated with the seller. These sales are coordinated and seen through via a real estate agent. Areas which experienced high price growth were Melbourne’s eastern and south-eastern suburbs, including Clayton, Box Hill, and Blackburn South.
- In an auction, you can buy the property through bidding against others via an open forum. Examples of areas near Melbourne that have experienced high auction volume growth are Werribee Wyndham Vale and Melton South.
Locating sales at price value and through auctions can now be seen via websites like RealEstate.com.au and apps like Soho. There are also helpful features such as an inquiry form to contact the seller; and a mortgage repayments calculator, which gives you an overview of the payment estimates you will incur.
Top Areas for Property Investment
Apart from staying in the home, another reason for you to buy property is to lease it to renters. Find property close to in-demand areas in the city. Examples of such areas are those near Melbourne’s waterfront, or next to the employment hubs.
Here is a list of places that have the most affordable property prices, as identified by investment property consultants in Melbourne:
- Craigieburn – A suburb to the north of Melbourne, which has grown from a laidback country place into a bustling activity area. (Median house price: $385,000)
- Melton – A family friendly place, conveniently located near the airport and full of establishments. (Median house price: $410,000)
- Hopper’s Crossing – A fast-growing suburb with houses on large blocks with access to top entertainment and great public transport. (Median house price: $550,000)
- Dallas – A northern suburb of Melbourne which is close to the airport and the Coolaroo and Upfield Stations, and is popular with both young and old people. (Median house price: $476,000).
Requirements for Investment
To buy a home in Melbourne, you have to have a good source of income. You can also get financing from major banks, credit unions, mortgage brokers, building societies, and specialist home loan lenders.
There are also extra costs that you have to consider outside of the property. These include the following:
- Stamp duty by the Victorian Government’s State Revenue Office, based on the propery value
- Loan application costs
- Land title transfer fee and mortgage registration fee
- Legal and conveyancing costs
- Costs of moving and renovations
- Building inspection fees
- Rates and utility connections
- Ongoing mortgage repayments
- Home and contents insurance
Live the Aussie Dream in Melbourne
To make sure that you have problem-free property-buying, hire a highly dependable agent. Your agent may even give you the option to avail of a fractional investment in Melbourne, allowing you to begin investing using a small budget. Book an appointment now with any of the reputable property consultants in the area to make your dream a reality.