Handling property-related affairs in Melbourne is no easy job as it has a very competitive and difficult market. First-time investors find themselves lost regarding starting where, what, how, and what not to look for, getting into costly mistakes. Without proper guidance, you would end up lost and regretting choosing a home in a hurry.
As per the latest updates, the average price for all dwellings in Melbourne is $781,949. Prices have fallen slightly in the last month by 0.4%, whereas in the last quarter, they have declined by 0.9%. This makes it extremely difficult to weather this dynamic market.
But there’s good news! In this article, we’ll share important secrets every first-time investor should know about buying property in Melbourne.
Know Your Budget First Before You Start Doing Anything Else
For a first-time investor, you need to set a budget ahead of time before entering the market of properties in Melbourne. Property prices seem to rise every year while recent interest rates have raised the bar to be economic
For starters, calculate how much you can borrow. It’s not only property expenses but other expenses like body corporate fees, legal costs, and building inspections that are included too. Thus, be mindful of it!
Know Why the Suburb Selection Matters
Melbourne is a massive city with many suburbs, each with quite distinct property price differences. For the first-time investor, middle-to-outer-ring suburbs are more likely to provide opportunities for long-term capital growth and rental yield.
Properties further from the CBD tend to be more affordable and will attract more tenants, families, and professionals seeking quieter, more spacious homes.
Avoid Biased Advice
One of the most important secrets for any first-time investor is to steer clear of biased advice from real estate agents and marketers. Most professionals will have commissions tied to the sales of a property and may push you toward choices that benefit them, not you.
For an unbiased view, you need to seek advice from an independent Property Investment Advisor in Australia or hire a best buyers agent in Melbourne.
Ask if they’re paid by the seller or a third party if you don’t know who’s recommending the property. This will help you make a smart decision.
Risk Tolerance: Know What You Can Handle
There are different levels of risk associated with investment properties. If you are a more cautious investor, you should focus on established properties in growth suburbs.
Higher-risk investments include property development, which offers significant returns. Such investment returns aren’t for everybody.
Engage with a Property Investment Advisor from Australia and analyze each property on a merit and risk basis. This will help you make the correct choice of investments that fulfill your desired financial output and comfort level.
Consider Front-load Costs and Ongoing Outgoings
There are higher acquisition costs for properties in Melbourne. Such costs include stamp duty as well as those costs involved in solicitor fees and building inspection. However, there are higher costs that do not seem important, and these will be forthcoming with time. These include property management fees, maintenance, and insurance.
Ensure budgeting for all such costs before investing in any property so that this does not stress the pockets later. Above all, ensure that the property generates enough rental income to pay for all these costs, giving the necessary margins for profits.
Always Get a Professional Inspection
One of the mistakes most new investors make is basing their decision on what they see in terms of property. Structural issues or even pests can have you spending a fortune at later repair stages. Always ensure that you invest in having a professional building and pest inspector who will assess the property properly before buying. This is going to keep you from turning your dream investment into a nightmare financial headache.
Why You Should Use a Buyer’s Agent
Melbourne is a competitive real estate market, and the first-time investor can quickly get lost in the process. That is where a buyers agent agency in Melbourne can help win the case. They are specialists who are well aware of the market. It could be very helpful to allow them to negotiate with the sellers to acquire the best deal.
Only the best buyers agents in Australia can know the local market like the back of their hand; therefore, it keeps you away from costly mistakes.
Hiring a buyers agent agency in Melbourne is sure to put your interests at centre stage throughout the process.
Why is Citadel a Trusted Buyer Agency?
Citadel stands out as one of the best buyer’s agent agencies in Melbourne. They tend to emphasize personalized services for first-time investors. The deep knowledge of Melbourne’s property market that Citadel could use ensures expert advice at every stage in the buying process.
Citadels’ solicitor will be able to guide the whole process. From finding the right property to handling price and contract negotiations, Citadels’ team walks you through the finer details of Melbourne’s competitive real estate market.
Final Note
The Melbourne property market moves pretty fast but take your time before concluding. Do your research, get advice from a Property Investment Advisor in Australia, and check if the property fits into your financial goals. It is better to wait for the right investment than to regret a hasty purchase.