WITH interest rates rising, and government grants falling, it’s a pretty fair guess property prices won’t run away on you.


So if you’re working full-time, possibly renting and wanting to invest in your future, take note of the tips below, to enjoy the next cycle as a home owner.

RAISE CASH:

Saving a first-home deposit - about 10% of the property's purchase price - is your first goal as a home owner.

HOME renovation is one of the soundest investments an owner-builder can make. But with about a quarter of makeovers estimated to be done by owner-builders, you have to do it right.

Renovation-related television shows, magazines and seminars are inspiring would-be renovators and making people realise that investing in real estate does not necessarily mean buying an investment property. Many are unlocking potential in the family home and benefiting from the tax-free windfall.

"Property renovation is one of the soundest investments you can make," says Robert Caulfield, managing director of Archicentre, which provides pre-purchase and renovating advice to home buyers, builders and renovators. "When done properly, it can make you money - and have you living in style."

AT A RECENT auction in Prahran, a family of four was bidding against a single, first-time home buyer for a one-bedroom apartment close to Prahran train station, the trendy Boutique nightclub on Greville Street and Swinburne University.

The apartment included a modest living room, big enough for a couch, armchair and four-seat dining table, a compact kitchen, a small bedroom able to fit a queen-size bed and two side tables, and an ensuite bathroom. Hardly big enough to accommodate the growing family.

Eventually, the family of four outbid the prospective first-home buyer, in what is becoming an increasingly familiar series of events all around Melbourne.

YOU KNOW you are well and truly in a new century when selling your home requires a web designer and domain name administrator.

Many new campaigns – including that of the $18 million Melburnian penthouse, and Clinton Casey’s outgoing $21 million Avon Court mansion – incorporate movies and require the expertise of a production company!

The advent of gadgetry such as portable MP3 players, 3G-capable mobile phones and satellite navigation systems is changing the way real estate is bought, sold and leased in Australia. It's not just about the internet or SMS alerts any more. Today, the traditional print media campaign is backed by podcasts and interactive TV.

BUYING a property is a complicated process. There's more to it than scouring websites and newspapers for sale prices, or knowing what your neighbour's house sold for last week.  A large part of it is getting your finances right - and knowing what the legal processes are.

Below are some tips on what to expect when buying:

THERE'S a sad day each year when home owners are delivered what might be their most misunderstood bill - the council rates notice.

Council rates are calculated using your property's valuation and a rate in the dollar your council has budgeted as your contribution. Statewide (Victoria), the average rates bill for all properties -residential, commercial, industrial or farming – was $1135 two years ago.