3 New Year Resolutions for Melbourne Real Estate
New year, new you, new property? Late last year, the Real Estate Institute of Victoria remarked that we had the biggest ever December for completed auctions – a sign of how active the local real estate market has been. In 2017, you might be ready to take your next step and buy a house.
If making such a purchase is your goal for 2017, there are a few additional resolutions that could be worth sticking to.
1. Take advantage of low interest rates while they’re still around
The near-record low interest rates across the nation could have their days numbered. Many economists that predict each month’s Reserve Bank official cash rate told Finder that increases were likely in 2017, with some anticipating this as early as March.
While the majority do not think the cash rate (and subsequently, interest rates) will go up this early, it is worth bearing in mind. If buying Melbourne real estate is your big 2017 goal, whether it’s a warehouse conversion in Fitzroy, a Kew mansion or an apartment in the Docklands, then part of this will be locking in a low interest rate while you still can.
2. Buff up your savings
A rainy day fund makes owning Melbourne property much easier. Interest rates might rise, you may need to conduct emergency repairs, or you may find yourself without tenants (and therefore, without rental income).
A good tip for building up a savings buffer is to “set and forget”
As part of its New Year resolutions, the Australian Securities and Investments Commission (ASIC) implored everyone to review their savings buffer and see if it can be improved upon.
“A good tip for building up a savings buffer is to “set and forget”, by opening a separate savings account and making regular payments automatically via your bank or from your pay,” stated Miles Larbey, a senior executive leader at ASIC’s MoneySmart.
3. Don’t sit on your hands
Finding the best suburbs in Melbourne and great properties within them isn’t difficult – but many people get analysis paralysis and postpone their purchase. In fact, a recent MLC wealth survey found that self-doubt was the second-most popular reason why people don’t reach their goals (behind income level).
It’s important to remember that buying property is a long-term investment. Over time, nearly every piece of real estate will appreciate in value. There will be ups and downs, but it is almost always going to establish wealth over a period of years.
To resolve your purchasing goals, make 2017 the year you stop sitting on your hands and talk to your local Nelson Alexander real estate agent. Where there’s a will, there’s a way into the market.