A first home buyer’s guide

Buying your first home in a strong growth market like Melbourne is a hard task, but not an impossible one.

So what approach should you take? Most first-time buyers want a property which suits their lifestyle and which will grow in value over time so they can take a step up the property ladder in a few years’ time.

Here we have picked out some examples of the best prospects for a first-time buyer with a budget of $500,000 to find the right foothold in the Melbourne market.

Close in

In central Melbourne you are spoilt for choice as this area leads the nation in new unit development. But the building frenzy is unsettling some long-held views about which properties have the best profile for lifestyle and future growth in value.

With a $500,000 budget you will likely be limited to a one-bedroom apartment and the best opportunities are in low or mid-rise complexes.

The marvellous middle

Many of the best first time buying opportunities can be found with spacious two bedroom units in the middle ring suburbs 8-15 km out from the CBD. In this market, demand from budget conscious home buyers and investors collides with tight planning restrictions, making for some good capital growth prospects.

You should look for units in quiet tree lined streets with open plan living, a private outdoor space and a car park on title.

Also ensure you get your location right – within walking distance of train stations, shopping strips and parks and a short drive from a motorway.

I want a house

If you’re about to start a family or don’t like the idea of a neighbour on the other side of your lounge room wall, then a $500,000 budget is taking you out into suburbia.

Luckily there are some older areas reasonably close to the city in the north and west which are attracting large numbers of first time buyers – along with some people who are being priced out of the inner city.

If you prefer the east, you will have to travel further but there some areas with the rail lines and freeways which are still reasonably affordable.

Source: realestate.com.au