It’s what has thousands of young striving individuals, couples and first home buyers constantly struggling with when purchasing that perfect first home.. WANT vs what they really NEED!
You have now reached the stage you are ready to take the plunge, you have a substantial deposit saved up, you have narrowed down the budget and the suburbs you would like to live in and you have a checklist with all the important priorities the home needs to include. And so you begin the house hunting…….. soon to be met with the realization those ‘ideal suburbs’ and ‘important priorities’ you were wanting in a place of residence do not match the most important factor of the buying process, the budget!
You might have grown up in a beautiful large home with all the luxuries a home can offer. Naturally, when you begin house hunting for your own humble abode, you will be drawn to similar properties with similar features and offerings. But don’t forget everyone starts from somewhere and your family’s beautiful home – and comfy residence – didn’t happen overnight. In most cases, established family residence are the result of years of hard work, multiple places of residence, and working their way up.
When buying your own first residence its important to have these expectations in check and to be willing to ‘start from somewhere’. Do you need to have a 3 level town home in the inner city or can you manage a 20-30 minute drive or commute into the city? Do you need a brand new apartment? Or would an older apartment that’s neat, structurally sound and in a premium position do just as well? Do you really need two bathrooms and walk in wardrobes? Might one bathroom and built in cupboards tie you over as you ease your way into the market? Be willing to adjust your priorities list and compromise, as no property is ever perfect. It’s an unwillingness to compromise that can hold you back from purchasing a good property, potentially locking you out of a property market and letting time and prices pass you bye.
The aim of the game for First home buyers, is to get your foot in the door! Make a list of all the features you would like and features you need but have realistic targets. If you can manage to find a property with 5 features out of the ideal 10 and managing to stay under your budget, it is a property worth considering. Due diligence is something you need to be prepaid to do, market comparisons, i.e comparing established properties to building brand new and comparing different suburbs. Having trusted and reliable networks in the Industry to lean on for guidance and advice as you embark on the journey ahead is also a big advantage. House and Land Groups have fantastic relationships within the Industry, Real Estate Agents, Developers and great people to have on your side. The importance of a good lawyer or conveyancer and a financial adviser/ broker is also crucial.
Remember – a property isn’t forever, its a stepping stone! That first one bedroom unit will build equity and open doors of opportunity for your future purchases. You might choose to sell it and up size, or you may keep it and begin to build a solid property investment portfolio. Whatever you do – don’t let your ideals and dreams about what you want in a property get in the way of what you really need.