Property market myths we need to stop believing
The Victorian property market can be a tricky beast. It ebbs and flows through the years, changes from season to season and can be entirely different from one suburb to the next. Whether you’re buying to live or investing, it can take a lot of research and the help of an experienced agent to help you make the most of your time on the market.
Unfortunately, there are a number of property market myths many of us still believe that have us scrambling for the wrong properties or missing out on the perfect opportunities. Here are six of the biggest myths and misconceptions about the local property market that you need to stop believing:
The property market is the same throughout Victoria
Melbourne’s property market can vary drastically from suburb to suburb. Location, scenery and local amenities will all factor into the pricing for the area, as well as common house types. Heritage areas like Brighton cater to the luxury market, with plenty of Edwardian and Victorian homes and a median house price of $2.5 million, while trendy Fitzroy is full of historic double storey terraces that run at a median price of $1.6 million.
Just as the demographics of a suburb can be wildly different to the next stop on the train line, their property markets can vary just as much. Before buying, it is best to get a feel for the local market so you can understand what types of properties are available and what they’re likely to sell for at auction.
If investing in a home, you must buy a house
If you’re planning on buying your first property, then you’ve probably heard that you’ve got to get that land. But apartments have actually been seeing great growth in many urban areas in recent years and can fetch a healthy rental yield to boot when you’re ready to move on to your next property. Areas like South Yarra have gorgeous art deco apartments that can be just as spacious as many standalone home, with the average price for a 2-bedroom unit sitting at $635,000.
Buying cheap is the best option for beginners
You’re buying your first home, so you should buy the cheapest one you can, right? Probably not. In a lot of cases super cheap houses have had that price set for a reason – whether it’s a bad location or the need for renovations that will cost more than the house did. Do your research before deciding to buy because you might not be able to make a profit when you sell it in the future.
You should always invest locally
Many people think you should invest in the area you live since you know it so well, but that’s simply not true. Particularly when you don’t plan on living in the property, there’s no reason you can’t look on the other side of town or even in booming regional areas.
If you work in the CBD, it might make better fiscal sense to rent an apartment in the inner suburbs for the time-being and purchase a home in a burgeoning regional area. Suburbs like Werribee have seen great growth over the past year and are seeing an influx of jobs, and with the median house price of $490,000 you could find your way into the local rental market.
Start your search for properties now or consult your local hockingstuart office.