Which home for me?

Buying your own home is a dream that many Australians share. That said we all have our own motivations for taking the plunge and it is important to be clear on why we are choosing to commit to such a large financial burden.

We've put this article together to highlight a few key issues that you should consider before signing on the dotted line.

Define your objectives

Are you buying for lifestyle reasons? If it is all about location, you may want to consider renting in your desired area and buying an investment property in a less desirable area (where you can buy for less but still be exposed to the rise in property prices over time).

Are you buying to potentially add value through cosmetic renovation or subdivision?

'Buying well', at or below market price for your type of property is key to making a successful real estate investment. If you are buying to inhabit, it is not so much about 'timing the market' as it is about 'time in the market'. Do you have the skills required to undertake the renovation?

The Property Search

Looking at properties outside your budget is not necessarily time wasting! It helps you get a grip on what your money will buy you in today's market. Looking at more expensive homes also helps you evaluate the market price of a lesser standard property after you undertake renovations and improvements. This will be vital in deciding how much to spend on renovations.

Property Features

Consider the following characteristics when formulating your list of essential and preferred qualities in your home. It helps to decide upfront which are essential and which you are willing to compromise on. In this way you can save yourself a lot of time looking at the 'wrong' properties.

Type of property

  • Location - impacted heavily by your budget
  • Old or new property?
    • From an investment perspective, there are depreciation benefits associated with buying a new property.
    • Consider the maintenance required moving forward and factor this into your forecast of free monthly cashflow.
  • Design
    • Unit, townhouse, semi-detached, free standing houses.
  • Architectural style - Georgian, modern etc
  • Pets - do you need a lot of land, can you keep them in a unit?
  • Size/rooms/family expansion plans - children on the way?
  • Maintenance - gardens etc
  • Proximity to your place of employment - maybe you can save in fuel and running costs by walking/using public transport?
  • Lifestyle - proximity to nightlife, beach etc
  • Level of amenity - schools, shops, and other essentials
Get your quotes now

What to find out more? Enquire now

Published on July 7-th, 2007 in Home Loans
Damon Rasheed is the CEO of Rate Detective, an Australian financial service comparison sites specialising in Life Insurance, Income Protection Insurance and home loans. Damon holds a Master's Degree in Economics from the University of Melbourne and has been involved in many start-up internet businesses.
Enquire about Home Loans
Please enter the estimated value of the property

Important Information

Not all providers in the market are included in the comparison.

Any information or advice contained on this website is general in nature and has been prepared without taking into account your objectives, financial situation or needs.