Australian real estate can be expensive, even more so now with all of the new developments and houses being marketed as ‘luxury’ or ‘premium’ properties.
This article will look at how much property is really cost-effective for average Australians to own and develop their home-ownership skills.
It will also talk about what costs are associated with owning a house in Australia and some ways to reduce these down payments and monthly housing expenses.
I have organized this article into three main sections: The Costs of Home Ownership, What A House Cost In Dollars, and Tips For Saving To Own A Property.
The Costs of Home Ownership
There are several different fees that landlords and sellers pay to cover their overhead costs in order to offer a property to rent or sell. These include:
Property Management Company Fessses
Utility Bill Payments
Home Staging Fee
Listing Agent Commission And Other Fees
These are not only paid by the seller but the owner of the house too! As landlord, you have to make sure your budget allows for them.
Luckily, most of these costs are relatively cheap to avoid. This article will go into detail on what each one means for you as a homeowner and how to keep these costs under control.
History of real estate in Australia
Australians have always valued their homes very highly, and it’s not hard to see why! A house is your home – where you live – so buying one is an investment in yourself.
It is also a way to show off your wealth and/or taste, depending on what kind of house you buy.
There has been a history of people investing in property in this country since early colonial times. Since then, different governments have made it easier or even obligatory for citizens to do so.
Now that we’ve covered some background information, let’s take a look at how much real estate there is in Australia.
Real estate statistics
Australia has a total land area of around 9 million km2 (3.5 million square miles). This means that if you were to pick any two points across the entire country, they would be about three feet apart!
Land is the most common form of real estate in Australia, making up over 95% of all properties. The other 5% are houses, which are only half as plentiful.
In terms of value, the average price per m²(acre) of land was $1,300 back in January 2016, according to Domain Group. This makes a 1km2 lot worth just under $100k!
However, large lots of land are quite expensive, with a few hundred thousand dollars being the norm. Just because someone else paid more does not mean it is a good deal.
Factors that affect the value of real estate
There are many different factors that can influence the price property will sell for. These include the number of houses available, whether the house is close to your own home or not, how popular the area is, and what type of neighbourhood the house is in.
The most important factor is the actual property itself. The condition of the house, its surrounding areas and the list of owners all play an integral part in determining its final cost.
Overall quality of the building and renovations also matter. More expensive decorations and features indicate that the owner invested in this place, which usually adds to the price.
Given that we’re talking about real estate here, there’s always a chance that the seller will try to push up the price.
Buying your first home
Finding a house to buy is probably one of the most exciting things you will do this year. It is also quite possibly the scariest as it can feel like there are never enough hours in the day!
Before you start looking, make sure you have done all the necessary things such as sorted out your finances, found a place to live and put away some money for a deposit.
Once you are ready, then get searching! There are many ways to find a house to purchase and the best way depends on what kind of property you want and how much money you have available.
There are several stages to buying a house including finding a suitable house, getting around to visit it, agreeing to pay a price, completing negotiations and finally signing the contract.
In this article we look at some of the costs associated with owning a house include keeping up with mortgage payments, legal fees, insurance, cleaning and maintenance, and more. We’ll cover some easy tips too so that you know what to watch out for when negotiating and investing in real estate.
Finding the right property
The first thing to do when looking for real estate in Australia is deciding what kind of property you want. This could be a house, condo, apartment or a rural land or acreage tip!
There are many different types of properties available so no matter if you’re looking at your dream home, investment or just because it’s cool, there should be something perfect for you!
Most people begin their search by doing some research online or through friends and family who have already invested in a property. By being familiar with similar houses to yours, they can get an idea of how much a house like theirs sold for as well as any glitches that may have affected its sale.
A lot of sellers will leave a listing sheet inside the house detailing all of the features and things about the house they think may appeal to potential buyers. These sheets usually include information such as numbers for the up-sells and down-sells on the property, whether or not the seller has ever had issues with the area before and any recent upgrades done to the house. All these bits of info can help give you a better understanding of the house and whether or not it would suit your needs.
Finding the ideal home can sometimes mean making several trips away from home which may be tough for some. If this is the case for you then try to find a day where you don’t have too many commitments otherwise you may need to look more than once.
Maintaining your home is an important part of being a homeowner. It can be expensive to do it yourself, but doing so will give you some good tips and tricks for the house that we all own.
Regularly checking your water tank levels, windows and doors are essential parts of keeping your home safe and secure. Checking your roof and gutter systems every six months is also important as they help preserve the shelterability of your home.
Keeping up with general property maintenance helps ensure that your home will remain stable and strong for many more years to come. These things should be done at least once a year!
General upkeep items include cleaning and maintaining your home’s interior and exterior, giving it proper ventilation, and ensuring that appliances work properly. A few extra dollars spent now could save you lots down the track!
Real estate may seem like a very expensive investment, but having a look around can easily cost less than half what buying and renovating a new home would. Investing in properties that have been listed for several weeks already show how professional the sellers market is here in Australia.
Getting a loan
Finding a lender to give you a mortgage is not easy, nor will it come easily! There are many different lenders out there that offer mortgages, so how do you know which ones are good?
Most banks require you to have a steady job with them before they agree to lend you money for a house. This can be difficult if you’re a home owner as most people start buying houses when their income has increased or at least stabilised.
If you think your current salary isn’t enough to maintain your new property then you’ll need to look elsewhere for funding.
You could try looking through credit card companies or peer-to-peer lending sites where individuals sell their own personal loans and credit cards to other users.
Alternatively, you could consider renting instead of owning a house. Many landlords accept lower payments per month than what a buyer would expect so check out our guide here to help you decide if this is right for you.
Renting or owning
There are two main ways to own real estate in Australia- renting and buying. The best way to determine which option is right for you depends mostly on your income, on if you’re looking to build up a property portfolio quickly or slowly, and what kind of lifestyle you want to have.
Renting can be cost effective at times, but it may not be the best choice for people who enjoy the stress of being landlords and owners.
Owners earn higher returns on their properties than renters, which makes sense given that they pay a monthly rent to live in them!
As with any investment decision, risk levels play an important part in determining which path to take. People who know how to manage a rental house will find it much less stressful than someone who doesn’t.
So, which one should I go with?
Well, this article will talk about some benefits of both investing strategies so you can make an informed choice.
Popular cities to live in
If you are looking for more of an urban feel, there are many popular places to live in this country. These include Sydney, Melbourne, Perth, Hobart, Canberra and beyond!
Sydney is known as the world’s largest city so it makes sense that it would be expensive to live here. It can also seem like no one else lives here due to how big the city is.
There are lots of things to do here such as going to the beach or spending time at the sports ground or theatre. There are also public transport options available which make everyday life easy.
Melbourne has been ranked the best place to live in the world several times so people are constantly moving here. This means great investment opportunities as well as houses to rent or buy.
Perth is another beautiful city with plenty to see and do. The cost of living here is slightly lower than other major capitals.
Hobart is a smaller city with very close knit communities. Many residents work offshore so they don’t need too much space.
Canberra is probably the most famous of all the Australian capital cities. People come from far and wide to work here because of this.
These are just some examples of some of the best large cities in Australia. They’re not necessarily the cheapest but they’ll always have a crowd of people coming and going.