1. Researching Neighbourhoods

Location is usually the first thought when considering buying a first home. Factors such as proximity to family, work or recreation, access to transport and roads, available amenities, entertainment, schools catchment areas all play an important role in the decision making process. But affordability and price can be a real constraint or obstacle in your plans. Navigating your needs,  wants and affordable options is key to succeeding in your First Home Purchase. This is where a reality check or compromise often needs to be made.

For instance, you might be able to buy in the area you want to live in but perhaps not the size or style of property you prefer. Or you decide to buy in a different location (your “B” choice) if it allows you the features you are looking for. Some buyers opt for rentvesting*. This is an especially good option for those who realise their why is “getting a foot in the door of the property market”.

* Rentvesting is a relatively new phenomenon where a person rents where they want to live (but can not afford to buy) and then buys where they can afford and where a strong return on investment is expected. It allows for more flexibility in the buying process (purchase price, high in demand areas, …) and comes with tax deductions that are not available when buying for owner occupied purposes. This option does exclude the First Home Benefits.

2. Exploring Neighborhood Dynamics

From bustling city centres to serene suburban enclaves, each suburb has its unique charm and offerings. Yes, location is usually the first thought when considering buying a first home.  Factors such as proximity to family, work or recreation, access to transport and roads, available amenities, entertainment, schools catchment areas all play an important role in the decision making process.

3. Affordability vs. Lifestyle

But affordability and price can be a real constraint or obstacle in your plans. Navigating your needs,  wants and affordable options is key to succeeding in your First Home Purchase. While inner-city suburbs may boast trendy cafes and entertainment options, they often come with a hefty price tag. You may be able to buy in the area you want to live in but perhaps not the size or style of property you prefer. Or you may explore outer suburbs or emerging areas (your “B” choice) that offer the features you are looking for and are more suited to your budget. Some buyers opt for rentvesting*. This could be a good option for those who realise their why is “getting a foot in the door of the property market”.

Balancing these different forces might not be easy but it often is an unavoidable part of the journey. A good strategy is to make a list with all your wants and needs and then rank them on a scale of 1 to 5. 1 Being “nice to have but not essential” and 5 being “non negotiable”. Refer to the earlier link for an extensive list of features. Once you have gone through the list and ranked each criteria you will have a much better idea of the right path forward for you.

Thank you for reading this article. We are posting soon the continuation of this post “First Home Buyer Guide: Know Your When”. Stay tuned.

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For questions, please feel free to send us a message. Email us at erik@micah.com.au