If you’re thinking about buying property in Melbourne, chances are you’ve wondered, “Is now the right time?” With fluctuating interest rates and shifting market predictions in 2025, knowing when to enter the market isn’t always clear-cut. This guide breaks down what to consider before making the decision to buy a property and how LP Advisory can support you at every step.
How to Know When to Buy Property
Timing the Market vs. Time in the Market
A common misconception when buying property is waiting for “the perfect time” to buy. Many buyers think they need to wait for a dip in prices before entering the market. But this is rarely the best approach.
History shows that long-term growth is driven by time in the market — not necessarily timing it perfectly. Rather than waiting for the ideal market conditions, focus on selecting a property with strong growth potential and holding it for the long term. The earlier you start, the more time your investment has to appreciate.
Lou Lihari, Director of LP Advisory, says, “You’re not just buying for now. You’re buying for five, ten, fifteen years from now. That’s how we think.”
“It doesn’t matter if you get $10,000 off if the property’s not going to grow in value. You’re better off paying a fair price for the right property than getting a discount on the wrong one,” Lou advises.
Rather than reacting to short-term market movements, focusing on long-term strategy, strong asset selection, and sound fundamentals is often far more rewarding. ABS data shows that Melbourne’s median residential property prices have more than doubled over the past 20 years, reinforcing the long-term growth potential of well-chosen real estate.
By focusing on quality and long-term growth, you set yourself up for success regardless of current market trends.
Assessing Your Financial Readiness
Before buying, it’s important to review your financial situation and ensure you’re genuinely ready.
Most buyers consider the following to be indicators they’re financially readily to invest in a property:
- A strong deposit (usually 20% to avoid LMI but lower deposits can also work and we can connect you with experienced brokers based on your circumstances)
- Pre-approval from a lender
- A stable income and emergency buffer
- A clear understanding of extra costs like inspections, legal fees, and stamp duty
Partnering with a buyer’s agent like LP Advisory can help you gain a clear understanding of your financial position and what’s realistically achievable. Even if you haven’t yet saved a full 20% deposit, there are flexible options available. LP Advisory works closely with trusted brokers who can assist across a range of scenarios, ensuring you’re well-prepared to make a purchase that fits your financial goals. With tailored support designed for first-home buyers, up-sizers, and investors, you’ll be fully prepared to move forward with confidence when the right opportunity arises.
Balancing Emotion with Strategic Thinking
Buying a property, especially a home to live in, is an emotional journey. It’s easy to fall in love with a place based on how it looks or feels — but making a sound decision requires balancing that emotion with a clear strategy.
At LP Advisory, we often remind buyers that your heart can choose the home, but your head needs to sign off on the investment.
Some key questions to ask yourself before purchasing a property:
- Will this property grow in value over time?
- Is the location desirable and well-connected?
- Are there any foreseeable risks or hidden costs?
Lou Lihari explains: “A great-looking home in the wrong street won’t perform as well as a modest property in a blue-chip location. Buyers need to step back and ask: what will this look like in five or ten years?”
Emotional attachment can cloud judgment — especially during auctions or when competition is high. A strategic advisor can help keep you grounded, ensuring you make confident, future-focused decisions rather than reactive ones.
Is Now a Good Time to Buy Property in Melbourne?
Melbourne Trends & Data
The Melbourne property market has seen gradual changes across different suburbs.
- Victorian Government data shows house prices across Melbourne moved steadily in 2024, with prices differing by area.
- According to the ABS, prices in Melbourne have stayed relatively stable recently, even while other cities saw more noticeable drops.
This official data shows a market that’s steady, not booming or crashing, offering opportunities for buyers who are ready to act with a clear plan.
Melbourne-Specific Factors to Consider
Melbourne’s property market isn’t one-size-fits-all. Different suburbs offer different opportunities depending on supply, demand, and infrastructure. Here are a few local factors we consider when advising clients:
- Limited land near the CBD – Areas within 10–15km of the city with larger blocks and quality homes are tightly held and remain in high demand.
- School zones and lifestyle – Suburbs in top-performing school catchments and with walkability, parks, cafes, and good transport links tend to grow strongly over time.
- Major infrastructure upgrades – Projects like the Suburban Rail Loop and level crossing removals are reshaping key suburbs and lifting future value.
- Wide range of buyer demand – From families to investors and downsizers, Melbourne’s diverse buyer pool supports steady activity across different property types and price points.
- Zoning and environmental risks – Flood zones, bushfire overlays, and local planning restrictions can impact future development or value.
At LP Advisory, we help you navigate these local nuances and focus on suburbs that align with your budget and goals. Whether you’re after capital growth, rental return, or a place to call home.
Are You Considering Buying Property?
So, is now the right time to buy property in Melbourne? If your financials are in order and the right opportunity presents itself, the answer may well be yes.
LP Advisory offers:
- Home Buyer Advisory – End-to-end support for owner-occupiers, up-sizers, and down-sizers navigating Melbourne’s competitive market.
- First-Home Buyer Guidance – Tailored assistance for new buyers ready to step into the market with clarity and confidence.
- Auction Bidding Representation – Strategic bidding and expert representation to secure your ideal property without the pressure.
- Luxury Property Search – Confidential, high-end buyer representation for prestige property purchases.
- Off-Market Property Access – Gain an advantage with access to exclusive listings not advertised publicly.
- Investment Property Strategy – Smart property sourcing and advice aligned to your long-term portfolio goals.
- Negotiation Support – Skilled negotiation to secure the best price and terms.
Ready to Take the Next Step?
Get in touch for a personalised consultation. Whether you’re entering the market for the first time, growing your portfolio, or securing your forever home, LP Advisory is here to guide you every step of the way.
Contact us today! Your property journey starts here.
