WITH boom median house prices in Melbourne and parts of regional Victoria, great home deals are still to be had.
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According to Real Estate Institute Victoria buyers keen to break into the property market or investors wanting to add to their portfolio should look beyond key regional areas such as Bendigo and Geelong for opportunity “to secure a bargain”.
REIV's latest median house price data showed that it was possible to buy a home for less than $50,000 in some parts of the state.
“For first home buyers on a tight budget or those struggling to afford the home they want, this is welcome news,” REIV CEO Enzo Raimondo said.
“Even if the location is not the buyers' first preference, buying in a new town may provide the opportunity for a new start.
“It can also mean the chance to get a foothold on the property ladder with a buy-to-rent purchase for those lacking the funds to buy in their preferred area. Once on that rung, the property owners will, in future years, be able to use this asset to move further up the market.”
REIV reported Ararat had one of the state's lowest June quarter medians at $190,000; and a price growth of 26.7 per cent in the past 12 months.
“It seems many buyers are realising just what a great opportunity this is,” Mr Raimondo said.
He said Horsham, with a June quarter median of $185,000, the Pyrenees with $195,000 and the Central Goldfields with a median of $220,000 in the past three months, also offered good buying potential.
“But it is the lowest 25 per cent of sales over the quarter which give an indication of just what bargains there are out there. For example, in some small towns with fewer than 30 sales over the past 12 months buyers could snap up a home for less than $50,000.”
In Donald, the lower quartile median was $47,000 and Warracknabeal was $88,500.
“Of course it is possible these homes may not be in prime condition,” Mr Raimondo said. “But for those with time and DIY skills such a purchase can bring the chance to add value to an affordable property, substantially increasing the owner's equity.”
He said Victoria's regional median prices reflected the variety of property on offer across the state.
“From the $540,000 house price median in the sought-after Macedon Ranges commuter-belt to the small gems available at the north-western Shire of Buloke where the median was just $63,000,” Mr Raimondo said. “The best news is, there are more of them out there.”
For a full list of regional cities and towns and latest quarterly medians, go to reiv.com.au/regionalmedians.