Questions buyers ask themselves

May 16, 2018 BY Gil King

REIV chief executive officer Gil King.

Those seeking to buy a home will weigh up many factors before deciding which one is right for their own circumstances.

If a buyer is seeking to live in that property, those considerations will likely centre on suitability: Are there enough bedrooms for the kids? Does the kitchen fit the bill? Is the back yard big enough for the dogs?

Once a property satisfies all needs, it comes down to price. Can we afford it? Is it worth the money we’ll have to pay?

Investors will always ask themselves whether a property will show sufficient capital growth, and though this might not front of mind for those seeking to live in the home longer term, it is still a consideration.

Who doesn’t like to know their property will fetch more on the market than was paid for it?

In this regard, there is good news for homeowners outside Melbourne. Recent REIV data reveals growth in median prices of different sized dwellings in twelve months ended 31 March. Across regional Victoria, the median price for one-bedroom units have risen 14 per cent, with annual rises of 8.2 per cent and 11.8 per cent for two and three-bedroom units respectively. Two-bedroom houses have shown a median rise of 12.2 per cent, with smaller increases of 9.4 per cent and 6.7 per cent for three and four-bedroom houses.

Naturally, these rises are not reflected evenly across the state. The median price of a three-bedroom house in Norlane is now $330,500, an increase of 32.2 per cent over the 12 months. The same sized houses in Corio, Ballarat Central, Ocean Grove and Ballarat East have shown median increases in excess of 20 per cent over the period. Both three and four-bedroom houses in Lara also appear to be in demand, with 18.4 and 17.4 per cent rises.

In the first three months of the year, there was a 13.7 per cent rise in Horsham three-bedroom medians and a 10.6 per cent rise in Benalla for the same dwelling type, indicating a positive turnaround from a flat 2017.

If you’d like to know more about home values in your area, head to reiv.com.au/market-insights.