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.
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?
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.
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.