The best time to purchase your first home is when most people are absent from the market, rather than when buyer activity is peaking.
If you are looking to buy your first home then you should consider the following key points:
- Many first home buyers make the mistake of buying a family home, similar to their parents, which is not suited to their needs. It is important not to financially overextend yourself by purchasing a home based on an emotional decision rather than their specific needs
- It is important to remember a first home should be a stepping stone to a better home in future years. First home buyers should focus on the potential capital growth of the property as this will create equity in the property to upgrade to a better property at a later stage.
- A good tip is to check the annual average capital growth rates of the suburb for the last 10 years. This length of time will take into account booms and busts in the housing market and give you a better understanding of the capital growth potential of the property.
- Choose a suburb that has a lot of properties for sale. This will give you a stronger negotiation position with a seller who is competing with other home owners in the area to sell their property.
- Families are getting smaller so it is a good idea to focus on a smaller, well located property rather than a larger home in a more remote location.
- Consider older style apartments and townhouses in a well located position. These are typically more affordable and can be modernised at a lower cost than buying a new property that might be located in a more inferior position.
- Car parking and security features are very important when buying a home because more people are demanding higher levels of security and these features can impact on the resale value of the property
- If you are considering buying a strata unit, choose a complex that has an active strata management company that ensures the overall presentation of the complex is maintained. This will enhance the re-sale price of the unit.
- It is important to stay in close contact with your real estate agent and clearly express your needs. You’ll want to be notified as soon as a home that fits your criteria goes on the market.
- You should also keep in mind that there’s no such thing as the “perfect” home. Instead, set priorities. Determine what you’re willing to sacrifice, especially if you have a limited budget.