What are the barriers to Melbourne's best suburbs?

When you’re buying a house in Melbourne, it can be a challenge for even the most seasoned investor. As one of Australia’s main centres of real estate growth in the past few years, there have been a number of issues facing new and old entrants to the market.

We’ve seen it a lot, people jumping into the real estate landscape without proper preparation for the prices, supply issues and negotiations that can lie ahead. However, the recently released 11th edition of Genworth’s Streets Ahead report shows that Victoria now leads the way for home buyer confidence.

If this means more people are entering the market, then it’s a good time to look at what they are still worried about, and how the right agent can help.

The price of property

According to the Genworth report, affordability pressures are what most purchasers are worried about. In fact, 35 per cent of people that responded to the company indicated it was their number one issue. Looking at the recent increases across Melbourne, that seems pretty fair.

CoreLogic RP Data’s monthly indices show that to the end of September, Melbourne dwelling values went up 14.22 per cent to a median of $773,830. It’s enough to make it difficult for any home buyers when values go up this fast. But with agents that know your needs and can understand where to live in Melbourne on a specific budget, it can be made easy. Dream homes are everywhere!

Getting a deposit together

On top of this, a further 20 per cent of respondents to Genworth identified saving for a deposit on a property as the biggest barrier between them and a property. However, in Victoria it looks like we’re doing a little better than the rest of the country on this.

Only 17 per cent of us qualify as ‘heavily indebted’, which indicates that Victorians have fewer credit products.

Looking at real estate in Essendon and other central areas of Melbourne can feel like a chore, with central areas often highly sought after with prices to reflect this. However, you can get ahead of these challenges through the use of a professional who knows the market.

Here at Nelson Alexander, we’ve got more than 40 years experience helping people find exactly what they need, no matter what the conditions. Whether you’re experiencing these challenges or not, talk to anyone in our wide network to get the low-down on getting ahead of the market.