How Much Do You Know About Property Prices?

Before applying for a home loan, there’s one key piece of information you’ll need to have at hand – how much you’re likely to need to buy a property.

This means doing plenty of research into your chosen area and property type before using a finance calculator to find out exactly where you stand.

However, figures from Commonwealth Bank suggest this might not be quite as easy as many people think. Half of potential home buyers believe the median dwelling price in their area is higher than it actually is, which could have implications for how soon they can buy real estate.

“Our research found more than half of respondents didn’t feel confident they could find current property market price estimates or what their potential repayments could be, which are important things to know when looking for a property,” explained Dan Huggins, executive general manager of home buying at the Commonwealth Bank.

Being data-aware

After all, if you think you need to save a much higher amount than you actually do, there’s a strong chance you might hold back from entering the market. This is why it’s essential to have the latest data to hand to help you make an informed decision.

The January 2016 CoreLogic RP Data Hedonic Home Value Index is one example of the type of statistics you should be looking at. For example, it revealed that at the start of the year, the median price of real estate in Sydney stood at $776,000. For Melbourne and Brisbane, the amounts registered at $595,000 and $478,200 respectively.

Remember that property prices are changing all the time, so when you’re ready to apply for your home loan, make sure you have the latest facts and figures with you. An experienced real estate agent will be able to help you in this area.