How to Buy Your First Property in Victoria’s Housing Boom
If you’re a prospective first home buyer, it can be difficult to determine exactly when and where to buy to ensure you get the most for your money. Fortunately, Victoria’s recent property boom has made this process much easier.
Read on to explore what’s fuelling Victoria’s property boom and how you can take advantage of the emerging market.
Melbourne’s Property Boom
Melbourne has just overtaken Sydney as Australia’s hottest property market. A leading reason behind the trend is lower house prices are luring first home buyers and interstate migrants.
When compared to other capital cities, Melbourne has consistently seen the highest level of first home buyers. The chief reason for this being the cost of new land on the outskirts of Melbourne is far more affordable than in Sydney.
This can be seen by examining median house prices in the two capitals. The current median house price in Melbourne is $710,000 and $529,000 for a unit, while Sydney’s current median house price is $950,000 and $720,000 for a unit.
Another factor enticing first home buyers to Victoria is the state is currently in the midst of a career boom – with Melbourne boasting the most job opportunities in the country.
So, as a first home buyer, how do you take advantage of Victoria’s property boom?
Find Value
Get a feel for the area by doing your research and undertaking a sales comparison of similar properties which have sold in the region in the last three months.
For more detailed information, consider engaging a buyer’s agent, who has access to detailed sales data and experience in valuing property based on its location, land size and more.
Search for “Off-Market” Opportunities
With high buyer demand, the best time to make an offer is before the property hits the market:
-Contact local agents regularly to find out about new opportunities
-Consider using an experienced buyer’s agent, as they will have good relationships with real estate agents and access to “off-market” opportunities
Buy Unrenovated Properties
To find value in Victoria’s hot market, you need to reduce competition. Opting for a unrenovated property is an ideal way to do this, as they are considered a harder purchase due to the additional time, energy and money which must be put towards them.
While it sounds strange, the worse the condition, the better off you’ll be, as there is a higher demand for well-renovated, designer style homes.
Take Advantage of the Victorian Government’s First Home Buyers’ Grant
To encourage first home buyers to build in regional Victoria, the government is currently offering a $20,000 grant for first home buyers who buy or build a new home valued up to $750,000 in the region. The FHOG applies to contracts entered into from July 1st, 2017 to June 30th, 2020.
For more tips on buying your first property during a boom, simply call or email the expert team at No Deposit First Homes today.