Finally, we have bought our first home together. This is a life-changing decision because it means we are ready to commit and settle down in Melbourne for many years.

House hunting is an extremely stressful process. We took more than a year and viewed more than 50 properties. Not only was it very time-consuming, but it was also a very emotional thing as we were heartbroken after being outbid on 3 homes. We are glad that we have finally found our dream home.

 

The biggest lesson learned in the whole process

The property market has been very unpredictable due to COVID-19. When the pandemic started last year, almost everyone told us to wait as the property market would collapse.

At that time, we did not spend much time on house hunting; we saw some properties that we liked, but we did not go hard enough as we were waiting for house prices to go down… but it turned out that it was the best time to step our foot into the market.

Not only did the house prices not fall, but it is going up a lot. At the time of writing, the property price in Melbourne has increased by 9.5% in the last 6 months. We regretted that we did not buy it earlier.

But it was not just financially painful, we were also very stressed and tired of having to view houses and attending auctions every weekend. We were also stuck in an apartment for more than a year during the pandemic. Our rented apartment was great, but it just was not suitable for 2 people working from home together. We became very grumpy and our health was deteriorating in the past year.

If there is anything we have learned, it is: Do not wait for the best time to buy. Just find a home that you love at a reasonable price.

The property market can go up or down – no one can ever predict it. At the end of the day, we are looking for a home, not an investment. It is possible that the property market will fall in the near future, but since we are not planning to sell it in the short-term it is not really relevant to us.

 

Why it was so hard for us to find a home

Had to prepare for endless auctions

In Malaysia, if a property is in an auction it is most likely initiated by the bank as the homeowner is not able to repay the loan. But it is completely different in Australia, where most properties are sold through an auction by vendors and real estate agents, especially during a rising market.

If this is not complex enough, due to the lockdowns in Victoria there are virtual auctions which have very different dynamics.

We have been through many auctions and have seen many properties end up selling for 10-20% more than the advertised top price range. As we did not have any experience in auctions, it was a steep learning curve for us.

Buying a property is a mind game and requires strategy, and if we are not careful it is very easy to blow our budget.

So many things to consider, such as not sure if we should do a building and pest inspection report

As the house is the biggest asset in our life, it makes sense to have a third-party inspection before buying. It is very common to do building and pest inspection reports in Australia.

However, bidding in an auction is an unconditional offer. We could have paid AUD$500 for the report and ended up with nothing. Given the value of the house, we felt uncomfortable skipping this step but also worried that we will be showing too much interest to the real estate agent and might eventually jack the house price up.

At the end of the day, it is a personal choice / preference but it is not always easy and straightforward. This is just one example of the challenges as there are many more things (big or small) to consider when buying a home.

We got emotional and depressed at a point

House hunting is an extremely stressful and emotional process. We have inspected so many properties but mostly ended in disappointment. Sometimes we found a place that we liked and started picturing ourselves in it… and then get outbid by others. It was very emotional.

In fact, many people get mental health issues from house hunting (source: Allianz). We are so glad that we are finally over it!

 

Some after-thoughts after purchasing our home

Although we regretted that we did not buy sooner, we are glad that we have finally found our dream home. Every home is unique, and if we have bought before the pandemic we most likely would have bought something very different.

Due to the pandemic, we were stuck at home, and so we realised the importance of space. Because of that, we started to look for a home with a study room (easier for both of us to work from home) and also a bigger outdoor area. Since we moved in, we spent a lot more time at home.

Finding a right home takes time and a lot of research. For newbies like us, we are glad to have the advice of my aunt in Melbourne as well as Ben’s parents. Because of them, we gave careful thought to the layout and location of our home. We are luckier than most people on house hunting, though we still ended up paying about 20% more than our original budget.

I felt extremely emotional once we won the bid. Since I left my home in Malaysia about 9 years ago, I had not really settled down. I always wanted to travel and not be tied to any place… but after so many years of wandering, I started to long for a home, a haven that I know I can come back anytime no matter what happens.

A home is where our heart belongs 🙂