How to buy your home in Melbourne and Australia?
Buying your first home is one of life's most thrilling milestones. After decades of renting or living with parents, you are finally ready to step into a place you can proudly call "My Home". It is an exciting journey, but for many home buyers, it can also feel very daunting - especially if you are buying your first home in today's competitive property market.
Buying a property used to be as simple as browsing listings, attending the open inspections, and making an offer for the property. It was simple and straightforward. But thanks to modern day marketing, the process has become much more complex. Navigating these complexities without expert guidance could turn what should be your greatest asset into a financial burden.
As Buyers Advocates based in Melbourne(Buyers Agents), our buyers agents have been buying properties for over 20 years. From our experience working with our home buying clients, it shows that many home buyers are not properly prepared to prevent themselves from buying a lemon or a dud property. We’re here to ensure your journey to homeownership is smooth, successful, and stress-free.
This guide will show you how to prepare yourself for the exciting challenges of buying your home in Melbourne, what you need to watch out for and how to buy the home you want.
Can you rely on Social Media for Property Answers?
While it’s not uncommon for first-time homebuyers to feel overwhelmed, some unfortunately turn to "Dr. Google" and "Prof. Facebook" as their primary sources of property advice. Many home buyers believe that by simply Googling answers or crowd-sourcing advice from online communities, they’ve become instant property experts.
But the truth is, social media can only provide generic, surface-level information. Every property is unique, and relying on general advice often leads to misunderstandings that can impact your purchase. As one of the best first home buyers agents in Melbourne, we frequently find ourselves correcting misinformation that clients have picked up online.
When you’re buying your first home, expert, tailored guidance is invaluable. The right buyers advocates / buyers agents will ensure you avoid costly mistakes and help you secure your dream home with confidence. Don’t let misinformation guide your biggest purchase—trust the professionals who are dedicated to helping first home buyers succeed.
Why Is There So Much Misinformation About Properties?
Australia's property market is incredibly diverse, with hundreds of different sub-markets. From varying housing types to regions, suburbs, and buyer needs, there’s simply no one-size-fits-all answer when it comes to property.
Our experience tells us that every buyer’s situation is unique. Unfortunately, many homebuyers fall into the trap of believing in quick-fix solutions or generic advice. If someone is offering a "one-size-fits-all" solution to your property needs, they're usually putting their own agenda first.
Without a deep understanding of your personal goals and circumstances, you're left vulnerable to misconceptions, myths, and misinformation. That’s why it’s essential you get a tailored so you can make the best decision for your future.
What all buyers should know in the Real Estate World
Every home buyer should know, the whole real estate buying process is stacked against the typical buyer. A typical property seller has a trained selling agent protecting, negotiating and working for them, while a typical property buyer is usually left to their own devices. Buyers are usually left to deal with an experienced professional who had been trained to extract every cent from them. What most buyers don't know, is that regulations mandate that real estate agents have to look after the interest of whoever pays them. This link explains what all buyers need to know about the real estate agents. So, unless you're experienced and known what you're doing, the seller has the upper hand, with the sales agent protecting them.
What preparations do you need to buy a property?
In this article, we have compiled a step by step guide to owning your own home. We will also give you some facts which you must know, and some buying advice on how you can avoid problems later. As most people do not buy more than 3 properties in their lifetime, the mistakes covered here are applicable to both first home buyers and home buyers as well.
How much income do you need to buy a house in Melbourne?
This is probably the first question every homebuyer asks. The answer will depend on several factors, including your income, expenses, assets, and liabilities. To get a clearer picture, it’s always best to consult with a banker or mortgage broker.
Generally, banks or lenders will offer to lend between 5 to 7 times your annual salary. For example, if you earn $100,000 a year, your borrowing capacity could range from $500,000 to $700,000, depending on the lender, your financial commitments, and other factors.
If you're unsure where to start, we can connect you with our network of licensed mortgage brokers who have access to a wide range of lending products. Our Melbourne buyers agents are here to ensure you get expert, tailored advice for your property purchase. Simply ask us for a referral, and we’ll guide you through the process.
Where should you buy a house in Melbourne?
There isn't a one-size fits all answer to this. Some say the real estate in Melbourne is made up of over 100 different markets. Prices range from under $300,000 to well over $50,000,000, with apartments, studios, houses, attached houses, townhouses, bungalows, villas, chalets, life-style properties, etc.
When our buyers advocates onboard a client, we start with understanding what they want in the property. Size of house, number of rooms, location, amenities, public transport, highway, etc, in an interactive deep dive session, covering over 80-100 questions. At the end of the session, both the client and our buyers advocates will understand the client's needs and wants and would have a good idea where to buy the house for them.
What costs are involved in buying a house in Victoria?
Unlike other investment products, real estate has a higher purchasing cost and selling cost, making it a long term investment commitment. The good news is, if you invest in the right property in the right location, growth is highly likely over time.
Here is a run down of the costs involved in buying your house:
Government Stamp Duty – Approximately 5.5% of the property price. It’s important to factor this in for budgeting purposes.
Conveyancing Fees – Expect to pay between $1,200 and $1,500 (or more) for legal services to handle the paperwork.
Building and Pest Inspections – Typically around $1,000. This step ensures your new home is structurally sound and pest-free.
Other intangible costs:
Time – The time spent searching, conducting due diligence, attending inspections, and coordinating professionals.
Hidden Costs – The cost of traveling (fuel, public transport fares) to inspections.
Stress – Stress of dealing with agent's sneaky/pushy tactics, and dealing with uncertainties.
5 Steps to Kick Start Your First Home Buying
As buyers agents, our First Home Buying service has helped many home buyers buy their dream homes quickly and confidently. We've witnessed the pain points and challenges home buyers face, and we've compiled these 5 top tips to help home buyers avoid the common pitfalls that can make the process overwhelming. With these insights, you'll be equipped to navigate your home buying journey with relative ease.
1. Get your finances ready
The first step toward buying your dream home is getting your finances in order. Start by assessing how much cash you have available for the deposit, and if the funds aren't readily accessible in your bank account, consolidate them now. In a competitive buyer’s market, speed is critical.
Also, explore the various grants and loan schemes available to you. These programs can provide significant support throughout your home-buying journey.
Some of these grants and loan schemes are:
If you are a first home buyer, you might be eligible for the First Home Loan Deposit Scheme (FHLDS).
First home buyers might also be eligible for the First Home Owners Grant (FHOG)
Some single parent home buyers may be eligible for the Family Home Guarantee Scheme
2. Understand your borrowing power or serviceability
3. Determine what you want in your property
4. Your plans for the property
5. Start searching 😜
​With the ever rising interest rates and changing property market conditions, many buyers are hesitant to take the plunge. Some are even paranoid given the seemingly uncertain market conditions. The more proactive buyers have resorted to engaging the services of buyers agents (or buyers advocates) to help improve their chances of finding good deals and good properties, while some prefer to sit on the fence and wait till the storm blows over. There are no right or wrong.
Most home buyers are caught in this catch-22 situation. When everyone is not buying, they are afraid to buy. They only start their buy process when everyone else is buying. But they often find themselves competing with other buyers and being priced out of the market.
Do you need a buyers agent to buy a house?
No, you do not need to. It is not mandatory to engage the services of a buyers agent. However, buyer's agents can assist you in several ways:
Define your housing preferences and ideal location.
Explore alternative options and potential areas for your purchase.
Select the finest properties from both public listings and off-market opportunities.
Develop an effective buying strategy and determine the optimal time to make your purchase.
Represent you at auctions or negotiate for the best possible price for the property.
Manage the entire buying process on your behalf.
Inspect the property on your behalf.
Perform due diligence checks on your behalf.
Liaise with pushy sales agents on your behalf.
Serve as a mentor and guide throughout the entire purchasing journey.
Provide peace of mind, knowing that you're in capable hands.
Benefits of Using a Buyers Agent to help with your house purchase
Buyers Agents or Buyers Advocates may charge you a fee for their services, but in return you get:
Better access to properties. In addition to the public listings, we will include searching off-market sources for suitable properties.
Buy in under 2 months. Speed of purchase is king. You get to enjoy the benefits of your properties sooner, enjoy growth sooner and pay less rent, if you are renting.
Save money. In the bigger scheme of things, the buyers advocates fees are tiny. While a typical fee may cost about 2%, our experienced negotiators typically save buyers between $20k to 50k. Our largest savings to date is a whopping half a million. Yes, that is $500k saved on a $3 million house. A savings of 20%.
Save time. Shortlist and inspect properties, liaise with agents.
Save stress. We do the search and due diligence, and organise all due diligence inspections, conveyancing, etc.
Still not sure about your next steps? Have a chat with us. Our home buying service will help home buyers get into the property market, and we can help you buy home faster and more confidently. Let's discuss if we are able to help you. Book in your free consultation.
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