Two-bedroom homes are Melbourne's top performers

Two-bedroom homes are Melbourne's top performers

The Real Estate Institute of Victoria (REIV) have released figures showing that two-bedroom houses in Melbourne continue to outperform all other property types for growth and price. 

The latest figures show that the citywide median price for a two-bedroom house increased 17.1 per cent over the year to September to $891,500. Two-bedroom houses are $130,000 more expensive than the same period last year. 

The REIV believe that this is related to housing affordability in Melbourne seeing a shift away from traditional homes. 

Two-bedroom home prices are higher than any other housing type, including four-bedroom homes at $831,000.  Further, all the top performing suburbs for two-bedroom homes were located within 20km of the city. 

REIV President Richard Simpson said growth for two-bedroom homes was widespread across the city, with buyer demand the driving factor. 

“Single fronted homes in highly sought after areas have experienced a resurgence in popularity in recent years, appealing to a broad range of buyers including downsizers, couples and professionals. 

“Many of these older style homes have been recently renovated, offering quality amenities and lifestyle. 

“Smaller homes also allow buyers to enter the market below the suburb’s median price, particularly in the city’s inner ring where a two-bedroom house commands $400,000 less than the region’s median house price. 

“The top growth areas for two-bedroom homes were dominated by suburbs north of the CBD, with many of these offering price points well below their south-eastern counterparts,” said Mr Simpson. 

Another factor contributing to the growth of two-bedroom home popularity was that buyers often “preferred a smaller house to that of a similar sized apartment.” 

“Two-bedroom houses are highly sought after because they provide the buyer with land value and outdoor space, which remains a key factor for many buyers,” said Mr Simpson.

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No Cost Refinancing is an option available in the US where the lender or broker covers your switching costs, such as appraisal fees and settlement costs. Unfortunately, no cost refinancing isn’t available in Australia.

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If your work situation changes for any reason while you’re applying for a mortgage, this could reduce your chances of successfully completing the process. Contacting the lender as soon as you know your employment situation is changing may allow you to work something out. 

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If you’re a contractor, freelancer, or are otherwise self-employed, it may still be possible to apply for a low-doc home loan, as these mortgages require less specific proof of income.

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If you refinance to a new home loan, but still don’t have enough deposit and/or equity to provide 20 per cent security, you’ll need to pay for the lender’s LMI a second time. This could potentially add thousands or tens of thousands of dollars in upfront costs to your mortgage, so it’s important to consider whether the financial benefits of refinancing may be worth these costs.

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