One of Australia’s most viewed properties so far this month is a six-bedroom mansion in Toorak, selling for a record-breaking guide price of between $30 and $33 million. While this might be a little out of range for many purchasers, the top end of the property market in Melbourne has been booming as potential homebuyers look for larger properties offering more space for family living. This is the first time this property has been on the market for 25 years, and while the owners will benefit from an inflated sale price, the availability of homes like this that have been in one family for several years will help to provide highly sought-after housing stock for eager buyers. As well as investment in larger family homes, other real estate business ventures throughout Victoria have been encouraged by low-interest rates, and government incentives have enabled first-time buyers to get a foot on the property ladder.
Rise In Approval Of Home Loans For First-Time Buyers
In spite of high prices, more first-time buyers profiting from low-interest rates and government-supported loans are grabbing the opportunity to buy a home in attractive inner-city suburbs areas like Toorak. Melbourne’s suburbs have seen rises of up to 180% in demand from first-time buyers, reflecting a housing boom throughout Victoria.
While approvals for home loans have risen dramatically, buyers are still advised to shop around and take the time to review the terms of a home loan to ensure they’re getting value for money. Failure to do this is one of the most common mistakes made when buying property. Whether they’re taking out funding for the first time, or updating an existing financial product, this can help to ensure that they find a loan at an affordable rate, without the extra expense of excessive fees or unnecessary add-on products.
Buyers Rush To Beat Victoria’s Stamp Duty Rise
As well as acting fast to beat further house price hikes, potential house buyers are keen to complete a sale before stamp duty rises again in Victoria. Draft legislation to raise the land transfer duty rate on houses over $2 million looks set to be approved at the beginning of next month. This will affect buyers in affluent areas like Toorak with its mix of high-end housing. As well as presenting palatial multi-million mansions for sale, Toorak is one of the Australian suburbs highlighted in a recent survey where even the average price of an apartment has reached $1million. Interest from buyers remains strong, however, and lawmakers are optimistic that a rise in duty won’t dampen the market, but rather that it will be an effective way to raise more revenue.
While the prices of properties in Toorak and other sought-after Melbourne suburbs have soared over the last year, there has been no shortage of potential buyers interested in moving. Although even the price of a flat in some areas has risen to seven figures, low-interest rates and accessible home loans means both first-time buyers and current owners can still afford to move up the property ladder.
