Real estate experts in Australia believe that home prices will continue to fall next year, but Victoria should be one of your particular destinations. The state has the strongest regional market due to the combination of low prices and high investment yields.
For instance, house and land packages in Geelong, VIC may be a good place to start looking for a potential deal. When choosing a real estate development, pick one that has open spaces, parklands, and conservation areas nearby basic facilities such as schools, retail shops, and dining outlets.
Cheap Prices for Prospective Buyers
If the price is your top concern, there are homes for sales on the Bendigo, Ballarat, and Albury-Wodonga areas on the Victoria-New South Wales border. Some of the properties there are priced from as low as $200,000 up to $300,000. These locations also offer a ‘solid growth potential’ that is ideal for investors, according to property expert Terry Ryder.
However, you should not expect to see a home worth $200,000 to be on the market for too long. Competition from other buyers will obviously be stronger in these places, so be prepared to pay a premium since others will likely do the same. The three regional areas may not be near Melbourne, but its proximity to Canberra and Sydney is the reason many are interested in buying their own house in any of these markets.
Melbourne’s Falling Home Prices
Another reason to buy a home in regional Victoria involves the falling real estate prices in Melbourne, which is among the capital cities leading the decline in prices, according to CoreLogic figures. As of November, prices in capital cities dropped almost 1 per cent.
The decline indicated that home prices in Melbourne have declined for the past 12 months. This, however, does not mean that prices are necessarily cheaper. By the end of November, the median home prices in the city amounted to more than $656,000. The current price is not also a good indication based on an investment standpoint, as it represented 5.8 per cent decline year over year.
A Slowdown in National Market
Tighter lending standards are part of the reason why home prices in Melbourne have declined over the previous year. Tim Lawless, CoreLogic head of research, said that a rebound in the housing market would depend on relaxed policies for home loans and more available financing for buyers.
Still, this may not be possible in the near future and homebuyers should expect that prices might become more expensive in Melbourne. If you are willing to wait, though, Lawless said that home prices in Melbourne might further drop by 10 per cent next year.
It can be confusing to pick a location in Victoria if you only have a limited budget, but it would be a worthwhile investment to pay for an additional expense of hiring a property agent. An industry professional, such as someone who is familiar with your preferred location, will be helpful in finding a place that fits your budget.