First time homebuyers are struggling to break into the property market now more than ever. And, as house prices continue to rise in capital cities, it doesn’t look as though it will be any easier any time soon.
Here are a few strategies to consider that might make purchasing your first property more realistic.
1. Opt for a Smaller Property
It’s common sense that smaller properties are cheaper than larger ones. The price differences can be quite shocking – expect to pay up to $50k more for an extra bedroom. If you can’t compromise on the number of bedrooms, look for properties with spaces that could potentially be used as bedrooms, such as a garage.
You will also pay more for a detached, single-family home than an apartment. In fact, a house can sell for up to twice as much as an apartment with the same number of bedrooms.
Remember, your first property won’t be your last, so don’t get too hung up on the size.
2. Consider Other Locations
Location is important, but you should be flexible. First homebuyers usually can’t afford to live in their ideal suburb. Look outside your preferred zone in neighbouring suburbs with good transport links.
Suburbs further out can offer good value for money. Inner-Sydney suburbs, for example, are more than twice as expensive on average than Campbelltown, which is only an hour’s train ride away.
3. Consider an Investment Property
If you don’t want to compromise on size or location, an investment property may be the best way to break into the property market.
Purchasing a positively geared investment property is a fantastic way to kick-start your wealth building strategy. Because the rental return covers your expenses, the property practically pays for itself. In a few years time, when you’re ready to sell, the proceeds can be used to put a deposit on a property you truly love.
If you’ve found a property you’d like to purchase, whether it be for investment purposes or not, give us a call. Buying a home for the first time can be daunting, and we’re here to make the process easier. Phone 02 9068 6644, or send us an email.