Help buying an apartment in Melbourne.

Melbourne’s experienced an over supply of apartments over the last 5 years creating an environment where there is more sellers than buyers. Quite opposite to the current residential housing market being a sellers market (more buyers than sellers).

Purchasing in a buyers market is difficult and for some reason attractive, there is a feeling of missing out and everything seems to sell. In a sellers market it’s quite the opposite, buyers are thinking more about risk and become property savvy, this is only natural due to increase in choice.

Being an experienced buyers agents and property developer I know which market I prefer. Many successful investors understand how to profit from market cycles, Warren Buffet famously said ‘buy when people are selling and sell when people are buying.’ This simple rule works with any sort of investment class.

 

Playing the market cycles to your advantage

 

Making money in real estate is simple if you follow a few basic rules, the two key factors:

  • Time on market: Long-term ‘hold’ strategy.
  • Hold quality assets in your portfolio, buying something everyone wants:

Long-term hold strategy allows you to choose the most profitable time to exit the market. Stock market traders have a catchy saying ‘buy low sell high’ rings true in property investing. Currently it’s obvious the market is flat and prices have dipped and could fall further, hence a low point in the market is presenting a good buying opportunity.

Looking at Melbourne’s big brother property market Sydney, an entry-level two bed, 1 bath, 1 car apartment sells for approximately $1M, this is almost double Melbourne’s entry-level apartment price.

Don’t Melbourne’s love the Australian dream of owning a house? I believe this is changing due to a combination of high median house price $840,000, poor wage growth, high cost of living, low levels of blue-collar job opportunity around the outer suburbs and heavy traffic congestion.

Apartments are relatively cheap to purchase, cost effect to live in, low maintenance, located close to great amenities and infrastructure and most importantly close to high paying job opportunities.

 

How can a buyers agent help?

To ensure your time on market is successful it starts from planning for the right purchase. Having a good team to ‘steer your ship’ by influencing your decision-making saving you time, money and heat ache. This means finance advisors, finance broker, buyer’s agents, property mangers and solicitors. Each has an important role to play in your assets long-term success.

 

How do you spot a good ‘quality’ apartment? Our buyer’s agents have been buying property for over 20 years, we understand the key factors that effect capital growth and apply this when selecting an apartment. Some selection criteria we apply:

 

  • Minimum size apartment.
  • A healthy balance of apartments and residential property.
  • Lower number of apartments in the complex.
  • Around infrastructure (trains).
  • Secure car park on property title, not leased.
  • Life style options (cafes, shops, parks, beach etc).
  • Low maintenance and holding fees.
  • High rental return, 4% p.a.
  • Certain proximity to the city.
  • We knock back 95% of property on the market.

If you’re considering buying an apartment in Melbourne consider how a professional property buyer can ensure your success, contact Wise Real Estate Advice for an obligation free chat.

Property Buyers Guide

Download a FREE Home Buyers Guide, an easy to understand booklet designed to help you through the process of buying. Your copy of the property buyer’s guide can be downloaded here.

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  • Wise Real Estate Advice

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    Hari Krishnan
    Hari Krishnan

    5 out of 5 stars

    posted 1 month ago

    I found Mark through Google!!!.
    Since my first meeting I felt so confident in Mark's ability and experience in being able to deliver a great result. I was very much impressed with Mark's service as he made the whole process easier and stress free!!!!

    I am really happy because I bought exactly what I was looking for and it was well under my top budget. Most importantly We did it within few weeks.

    Since day one Mark was very pro-active.

     Mark emailed multiple properties every week within my search parameters and wish list.
     Mark allowed me to be involved as much as I wished.
     Mark inspected the properties I liked.
     Mark explained the positives and negatives about each property.
     Mark held a pre-auction meeting and attended the auction
     Mark's strategies and suggestions like where he’ll stand during the auction, how he’ll handle the negotiation etc. etc. and through to the final shaking of hands inside the house all played out in a positive way.

    Thank you Mark for all your work in getting me the right house for the right price!

    I highly recommend Mark for everybody who wants to find a good place to live or invest.

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    Ken Stewart
    Ken Stewart

    5 out of 5 stars

    posted 5 months ago

    Mark was personally recommended to me as someone who could be of real help in appraising my property of interest and subsequently representing me at auction.
    He made time to meet for an initial chat over coffee. I was immediately impressed and relaxed with his easy and honest nature, as well as his willingness to listen to my needs.
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