House For SaleBased on a CoreLogic index, home prices cost $716,774 in June despite falling for the seventh month in a row. When compared to the last 10 years, however, property values have surged by almost 50 per cent.

If you re looking to buy real estate in Melbourne, Victoria, you may want to consider suburbs in the state instead of searching in the city centre. Here are some factors to think about:

Still Unaffordable

The value of single-family homes in Melbourne fell to $821,463, while apartment prices dropped to $574,304. The continuous slowdown in prices may indicate the end of a housing boom that has taken place in previous years. Some people have decided to look for listings in suburban areas, where prices are much lower yet remain in close proximity to the city.

Others simply chose to build homes from the ground up. In some cases, this could be cheaper than buying an existing house. Many developers have offered house and land packages in strategic places where basic facilities, such as schools and shopping centres, will be accessible.

Investment Perspective

CoreLogic research analyst Cameron Kusher said that the market slowdown in Melbourne would mean lesser chances of gaining a higher return on investment. He added that investors should be cautious, since the profitability of the city’s market may not be the same in the next 10 years.

It is good if you invested in a house in 2008, which means you probably recovered half of your money. In case you want to venture again in real estate, it may be better to invest in the suburbs where prices remain affordable with higher chances for value appreciation.

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Aspiring homeowners and investors should look into suburbs as a better alternative for buying properties than in Melbourne CBD. If you are still saving money, you can start by searching for lots in strategic locations.