Benefits And Downsides Of Buying a Home in Melbourne


Yes, buying a home or a real estate property is a big financial decision that many people take. However, there’s no doubt the housing market in Australia is booming today. Likewise, the conditions in Melbourne and Sydney have continued to be solid with an upward trajectory in prices. But there also several pros and cons to investing in a property in Australia. Thus, it’s important to weigh up the benefits and risks before making a purchase decision. So, the more educated you are about investing in a property, the lower your risk will be. Besides, this may help you with a closer look at access to a better location and high rental yield for the investors. Further, read on the ups and downs of owning a home property in Melbourne.


Stable investment

Buying a home or a real estate property is a stable investment when compared to other markets. In Australia, it’s a well-known fact that population growth is outstripping supply and thus property prices tend to double now and then.

Generates positive cash flow

One of the major upsides of owning an investment property is that you can rent it out. With this, you can put down the deposit, and the people renting the property pay for mortgage and expenses. In one way, it’s a good source of positive cash flow and passive income and with time this cashflow can eventually fund your lifestyle.

Offer tax benefits

You know properties are great when it comes to tax benefits. There are many tax benefits you can claim – like depreciation on fitting and fixtures which multiplies your tax savings.

Long term investment

Many people love the property as an investment because it can be a great long-term investment. And with the progression of time, they are likely to go up in dollar venue if you invest in the right area.


It is not very liquid

When considered shares can be easily sold out, while property takes longer to sell. However, depending on the area it could take weeks or even months to sell your property. This lack of liquidity could be a downside if you need to access your money quickly.

High entry cost

A property will cost you thousands and thousands of dollars. Especially, with property prices constantly on the rise, it continually gets harder and harder to get into the market.

Bad tenants can be a nightmare

Bad tenants can affect your cash flow if they don’t pay your rent and can be a real nightmare at times. Besides, the stress of bad tenants can be intense and they can cause emotional and financial stress.

Ongoing and additional extra costs

The real estate carries with its ongoing costs which you don’t experience with other investments. Those include insurance costs, mortgage payments, council rates, maintenance, renovations etc.

In a nutshell

A home or residential property is much more than just four walls. It kindles a range of colors and thoughts, evoking a sense of security and comfort. And with appropriate planning, you could land an asset where the rental income outweighs all other expenses.

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