Culture-dominated Melbourne boasts vivacious laneways and the coffee is like no other! However, it seems being a property owner is an entirely different story here. Melbourne real estate has aggressive competition levels. Whether you are a first-home buyer or an investor, it comes off as really confusing. Don’t worry Buyers! With the right strategies and precautions, you can not only survive but also excel in this maze and make reasonable decisions.
Let’s demystify it bitwise, so we filter out the nuisance and go right to the finer details.
1. Have an Idea of the Market (Before It does on You)
The Melbourne property market is as multifaceted as its residents. Whether it’s busy downtown or soothing suburbs, they got it all. There’s only one drawback though each area has estates of its own. The price range doesn’t become constant and at times the demands go extremely high. Only the Buyers Agents in Melbourne can handle and read the property market for your benefit.
To begin, get familiar with the localities of your interest so that you can gauge the market effectively.
- What are the prices of houses for sale?
- Is there a town plan that requires construction?
- How does the area feel to the residents? (Yes, feel plays a crucial role)
Take time to explore the neighbourhood since there’s a lot you can learn. Stroll along the streets, buy a cup of coffee and talk to the locals. You are not simply purchasing a property; you are investing in a neighborhood.
2. Pen Out the Things That You Absolutely Will Not Compromise On
Before going ahead with a property inspection, take the time to delineate what’s imperative from what’s desirable. An immense distinction exists between the two.
It is crucial to ask oneself:
- What’s the ideal number of bedrooms and bathrooms in your abode?
- Are you looking for a garden and a balcony or just one of the two?
- Do you want to be close to transport, schools or even cafes?
Preparing such a list is helpful as it keeps you steady in case the time for excitement (or panic) arises. It is too easy to instantly adore a lovely property and neglect your “must haves.” So, Stay alert!
3. Decide and Stick to a Budget (Unless you want to be Broke)
This can't be glossed over. Gaining an understanding of how much you plan to spend without even glancing at an offer should be a priority. And by an offer we mean a realistic one.
You do want to include:
- Your deposit
- Stamp duty (this is huge in Victoria!)
- Legal services and payments
- Future improvements or repair work
When securing servicemen, taking too much from the bank is not advisable just because they say so. Doing so can make you stretch your finances too thin and allocate nothing to backup options. Because given the reality, you will need alternatives.
4. Become Aware of the Off-Market Deals
One of the best-kept understories in Melbourne? Off-market properties. Such treasures are not put on listings for the public, meaning a much lower pool of competition. Sounds lovely, no? So how do you actually come across one of these?
This is where networking comes in. Start meetings with local agents and inform them about what you are after while staying vigilant. Even though it is a bit of work, the benefit can be getting a home that has everything you want. That too without needing to partake in auction models.
5. Always Carry Out Inspections
Many times, one coat of paint is all you need to mask a wide range of flaws. This is exactly why property inspections are a must attend. Open homes are to be attended and observations shall be made especially regarding the non aesthetic such as:
- Split seams along walls and ceiling.
- Wet patches or mould patches.
- Orientation of the house since no one would like to sit idly in a dark, cold living room.
When you have serious interest in a house, a building and pest inspection is recommended. It’s always better to spend small amounts of money in order to avoid bigger expenses later on.
6. Relax in a Good Way to Handle Bidding at Auctions
The Melbourne auction is something that is exciting yet scary. In Melbourne, auctions are part of life. Unfortunately, buyers find them slightly unsettling despite being the fastest method to dispose of properties.
To remain calm:
- As a start, go through a few auctions just to see how it works before placing your bid.
- Determine your ceiling cost before the auction, and trust your instincts to fulfill that decision.
- Ask someone close, a relative preferably, to accompany you if you feel that you will go overboard.
And remember, there will always be another piece of real estate. The rush of excitement or fear of missing out should not determine your judgment.
7. Dependent On The Market’s Timing And Its Current Season
Being in the right place at the right time is critical in the property market in Melbourne. Sales figures generally shoot up during Spring, which means there is a plethora of buyers. Several buyers though prefer Winter as a result of lesser buyers, this again creates other challenges such as the freezing cold.
In case you are confident, try looking to buy when everyone else is not looking to buy. This might just be the trump card you need.
8. Do Some Research Before Making The Decision, But Also Trust Your Instincts
When purchasing a house, there are two things that you must take into consideration. It is not only a financial investment that is going to be made but also an emotional one. That said, it is crucial to remain level headed but also rely on your gut feelings from time to time. For example, if a certain property has ‘good vibes’ and there are strong positive feelings then it is a good indication. However, stop letting feelings blur your judgment.
Back up your gut with facts when doing due diligence on a property. Review property records, the current listings and past sales that include that particular area. This is to ensure that it makes financial and economic sense. A house is not worth it if it has demons attached to it financially and economically in the future.
9. Get Guidance, But Not Every Suggestion Is Useful
Whenever you will be purchasing a house, the neighbors will also have great advice for you. Some tips are shady whereas some might work great for you. So try to stick to trusted people and sources instead. Some of those trusted sources are:
- Look for people who work as agents in that area.
- Inquire a legal expert or financial advisor.
- Ask friends or family who have bought properties in Melbourne as this may be helpful. But do not expect their experience to be identical to yours.
You have to make the final decision yourself at the end of the day. Accept the advice that is useful for you and disregard the suggestions that are not.
10. Remain Patient and Determined
The real estate market in Melbourne can be a test of one’s patience. However, there is a popular saying that claims that ‘good things come to those who wait’. If you lose a property or it becomes too tedious, don’t let it get to you. Continue on your pursuit, keep improving your techniques, and most importantly do not forget why you started in the first place.
Final Thoughts
Unlike trying to solve a Rubik’s cube while being blindfolded, there is a way out of the real estate market in Melbourne. The trick is to have the right mentality and clear objectives along with a little bit of grit. This will allow you to find the right place.
And when you do? There is no better feeling than having the keys to your new residence. There are so many hidden gems in Melbourne that are waiting to be uncovered. All you need to do is adapt proper search strategies. Happy house hunting!
