House prices rising $766.00 a day – What does that mean for me?

Melbourne’s median house price soared in the final quarter of 2009 according to the REIV (Real Estate Institute of Victoria) and as published by the Herald Sun on January 23^rd, 2010. Melbourne’s median price was pushed above the $500,000 mark for the first time and is now $540,500. This represents an average growth of $766.00 per day for Melbourne’s home owners.

Other reports emerging in the press quote that the Melbourne median price will average $1m in just 10 year’s time.

‘But what does this mean for me?’ I hear you ask, well that depends……. Do you already own a property or are you looking to get into the market?

I already own a property….  Well what great news, average growth of $766.00 per day! Certainly more than our 9.00am – 5.00pm job pays isn’t it!  What it could mean is that your property is worth more than you think and it’s probably a good time to check. You may have more equity in your property than you realize and equity can mean choices, it might mean the time to purchase an investment property or to perhaps upgrade your property or it may even just mean being able to breathe again. We all held our breath for much of the past 12 months wondering just how the global economic crisis was going to affect Australia and us as individuals, now as we come out the other side we can take stock and for many of us knowing our property is worth more than we thought opens up many different options or it could mean something as simple as being able to buy those new shoes you’ve been keeping an eye on without feeling guilty. At Harcourts City Residential we are more than happy to provide an updated appraisal for you, we don’t mind if you not planning to sell, we believe it’s important for you to know the value of your biggest asset and are happy to assist in this area. Ask your Harcourts City Residential consultant to pop past and provide you with an updated appraisal.

I’m trying to buy a property now….  Well it seems like bad news doesn’t it? In actual fact, it’s not all bad. If you buy in a falling market you buy something one day and its worth less the next, that doesn’t feel so hot! Whilst buying into a rising market can seem daunting it also means by the time you settle on a property (pay for it in full and take ownership) it’s worth more than what you paid, now that’s certainly a great feeling! People often ask me “when is the right time to get into the property market?”  My answer to that question has never changed in all my years of answering it. “As soon as you can afford to” it doesn’t matter if it’s rising, falling, or stable, at the end of the day, history shows that over time property always goes up. Yes it may fall from time to time but it always recovers and does better than before again before too long. The key is, make sure you can afford the re-payments in the worst case scenario, i.e.; budget for interest rate rises, loss of employment and any other unforeseen circumstances; as long as you can keep meeting your repayments in the worst case scenario you will always come out on top. You only lose money in real estate when you’re forced to sell in a down market. If you can always meet your repayments and have the option to sell when you wish and not when you’re forced to then property market can be great fun as well as a solid performer.  Finding the right mortgage product and ensuring you’re adequately insured is also extremely important and you should put as much homework into this part of the transaction as you do looking for the right property. We at Harcourts City Residential can certainly help with your property search and we can help by way of referral for a, quality, finance or insurance broker who’ll work with you to find a product that suits you not only now but with any future in mind. Getting it right from the outset can save you a lot of time and money down the track, especially when it comes to flexible mortgage options. Just ask your Harcourts City Residential consultant for more information or for an introduction.

 

*Harcourts City Residential has gathered this information to provide an interesting document for apartment owners and prospective purchasers. Harcourts City Residential may not have affected any or all of the transactions noted; rather we’ve gathered as much market information as possible on ALL transactions to be as conclusive as possible.

Information contained herein is gathered from a range of sources including but not limited to; The Age Property Results, The Herald Sun Property Results, Valuer General Information & Agents own investigations. All efforts are made to verify the information provided. The information is not to be relied upon or used in dealings with third parties and people should make their own investigations regarding their own property or personal circumstances. Opinions offered are just that, our opinions & observations and should not be treated as fact.

If your property is exclusively listed with another agent please disregard this communication