As home prices rise across Australia, so too does home buyer fear that they’ll be priced out of the market. But, with smart money management and sound market research this does not need to be the case.
According to the latest housing figures, house prices in all Australian states and territories, except Tasmania, have risen between 2.5 and 13.4 percent over the last 12-months. The greatest price rises have occurred in Sydney (13.4 percent), Melbourne (11.9 percent) and Perth (6.9 percent). Followed by Darwin (4.6 percent), Brisbane (3.8 percent), Canberra (2.7 percent) and Adelaide (2.5 percent). The only state that decreased in value was Hobart (-0.2 percent). Median prices in Sydney typically hover around the $660,000 mark, whereas Melbourne’s median is approximately $553,000 and Perth $525,000. Canberra and Darwin’s median is $530,000, Brisbane $462,000, and Adelaide $390,000.
Economists and housing experts suggest that pricing declines are highly unlikely. Population growth, an increase in housing credit and a rise in consumer confidence is pushing housing prices up. The low interest rates are expected to drive this surge. But, this news doesn’t have to be a deterrent for home buyers.
How to Manage Home Buying Costs
Home buyers should be looking at ways they can beat price rises and break into the market, whilst staying within their initial budget. This way they don’t have to save more for a home deposit before buying, and it means they can buy now, instead of months down the track when home prices could possibly be higher. The following hints could give you the advantage you’re seeking:
- Conduct sound market research. Compare home features, age and quality as well as location. Know what dollar values represent the top and bottom of the market in a specific area.
- Always shop for a home within your budget. Make sure you’ve accounted for all fees and charges, such as stamp duty, mortgage transfer costs and conveyancing fees.
- Find a home that represents good value. This means that instead of focusing on suburbs that have higher prices look at surrounding suburbs that have yet to hit their peak.
- Focus on growth suburbs where new infrastructure, such as roads and amenities are being upgraded and redeveloped.
- Look at council plans and what is going to take place in an area over 5,10 and 15-years.
- Think long-term, not short-term. Buy a more affordable home that needs work, in a desirable area. Then renovate and add value over the years you live in it. This way it will appreciate in value. You can then sell this home, make a profit, and use it as your stepping stone to buying the home of your dreams.
Are you looking for a cost-effective home loan? Yes, then contact eChoice and find the right home loan for YOU today.
Written by eChoice