When it comes to applying for a mortgage to make a new property purchase, there are a number of important things to be aware of – and one of the most significant of these is the median property price for the area you are considering buying a home in.
The median value is the middle price in a series of property sales. According to the Real Estate Institute of Victoria (REIV), it has long been considered to be one of the best measures of the true value of properties in an area as the median remains generally unaffected by the handful of abnormally high or low prices that can throw off a traditional average.
As such, the Victorian government uses the median price as an indicator of overall activity in the market – and the REIV also utilises this data to calculate property value per suburb.
Of course, each property has unique features and other attributes that affect its value, so the median price should be considered to be an indicator rather than a figure that can be applied to all homes within a specific area.
But median data can be very useful – especially for buyers who are new to budgeting for a home purchase. In addition to the price of their property, first-time buyers should be aware of the other costs associated with buying a property – including stamp duty and other relevant taxes – before they finalise their mortgage application. Your mortgage broker may be able to advise you on your expected costs and help you to determine what financial product is best for you.