Already have your eyes set on buying your dream home on an ideal suburb and frustrated because home prices just keep on rising?
It’s becoming more common for people to watch their savings grow, accumulating a big part for their home purchase a deposit, only to find that the local property prices have suddenly risen up more than they can afford.
So, what can be done?
Most buyers, first-timers and those buying another property are facing similar issues. Median house and unit costs are continuing to skyrocket in Sydney and Melbourne, this also includes many parts of other Australian capital cities and coastal towns.
Look for nearby suburbs. Shifting focus to another ring of suburbs can be a good idea to stay one step ahead of any upcoming price-growth. This is known as the ripple effect for experienced investors.
If you’re buying specifically for investment and future sellout, buying in an adjacent suburb may lead to appreciating value, giving you bigger profit when you sell so you can afford one in your desired suburb.
Consider a smaller home. Size doesn’t always mean better, plus what are you missing out anyway If you can compromise and purchase a smaller house or an apartment in your desired neighbourhood, the difference is negligible. If location is what you prefer, then you should be able to live with this. It may not be as modern or as big as you would have liked, but you get to live a suburb you want.
Purchase a fixer-upper. Through this, while you’re not really buying your dream home, you may still make it a reality by building it on your own. Take note that this strategy is not for everyone as it also depends on a specific suburb. However, if you really want to stay in that suburb, building is a good option. Remember to do a detailed cost analysis before starting.
Purchase an investment property. If you’re unable to purchase the home you want in your ideal neighbourhood, you can just buy a home you don’t want and rent it – or sell it in the future. Over time, with equity growth and more savings plus a good home loan, the dream location can be yours.
Be patient and wait. Most of us aren’t fan of waiting, but in this situation, waiting can be a good strategy. If you are patient and have the willpower to keep your savings and add to it for that prime time buying season, you may score that dream home before long.
Secure fixed rate home loan. Regardless of the strategy you opt for, choosing and securing a fixed rate home loan gives you the comfort and peace of mind knowing that your mortgage repayments for the property you bought will remain the same despite any upcoming market price change. And knowing Australia’s ballooning property costs, this is the most practical option for you.
It’s a real, ongoing dilemma – today’s competitive real estate market causes and more buyers to be priced out of their desirable addresses, making the Australian Dream of home ownership even more unobtainable.
Only choose a strategy after careful consideration of your financial capability and future circumstances. Best of luck!