Capital property prices are on the up
When it comes to buying property, it can be reassuring to know you've made a purchase in an area that's popular. Whether you're an investor with your sights set on an end goal or simply like the idea of selling your home for a profit the next time you move, this is something that's well worth taking a look at.
If you're hoping to invest your home mortgage in one of the nation's capitals then chances are you could be onto a winner, especially if results of the September RP Data CoreLogic Home Value Index are anything to go by.
It points to a 0.1 per cent rise in property prices across the capital cities over the course of the month, while they were up 2.9 per cent during the third quarter of the year.
Which cities are offering the greatest returns?
Of course, the situation isn't the same right across the country, as some cities are performing better than others. It's well worth taking a closer look at the data if you're serious about investing, just to make sure you make the right investment decision.
Sydney remains one of the country's standout performers. Property prices increased 0.8 per cent between August and September and were up 4.1 per cent quarter on quarter. Looking on a longer term basis, values increased 14.3 per cent between September 2013 and the same month of 2014.
Alternatively, Melbourne is well worth a look. You can expect property prices in the Victorian capital to have grown 8.1 per cent over the past 12 months, while the quarterly rise stands at 3.7 per cent.
Other cities that have performed well over the past 12 months include Brisbane and Adelaide, which have witnessed price rises of 6.4 per cent and 5.8 per cent. Perth, meanwhile, has experienced an increase of 3.2 per cent.
What method should I use to buy my property?
Once you've decided where you're going to make your property investment, it's time to start thinking more closely about how you'll locate that ideal real estate.
There are various methods open to you, depending on your budget, the timeframe you have in mind for the move and whether or not you have another property you will need to sell first.
An increasingly popular way of securing property is to head down to auction. Not only will you be able to enjoy the excitement of the sale room, but there's every chance you might be able to bag yourself a real estate bargain.
Spring is typically a popular season for homes going under the hammer, which is why it's more important than ever that you do your homework. Knowing how much you should expect to pay for a property before it goes up for sale can save you from making a decision that might not be right for your finances.
Australian Property Monitors explains how major cities such as Sydney and Melbourne are hotbeds for auction activity at the moment, so you should expect competition to be fierce.
Melbourne's clearance rate - that's the proportion of auctioned properties that have sold - stands at 78.8 per cent over the four weekends to October 4, while Sydney's is an impressive 83 per cent. This shows that if you're serious about buying at auction then you need to be armed with a backup plan, just in case you should find yourself outbid.
There are, of course, the more traditional options of buying such as through private sale and by heading to an estate agent. Whatever method you choose, make sure you're clued up on your purchase first - and that you have the right home loan in place.
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