In our last blog ‘The Importance of having a Property Strategy’ we talked about how it’s crucial to plan for your current and future property goals.
If your goal is to live in the home you are buying or building for at least five years, there are some important things to consider around your longer term preferred lifestyle prior to beginning the buying or building process.
It can seem overwhelming to choose where to start, so make a list of what you need (what you can’t live without) and what you want (the nice to haves) and make sure you consider:
- How close the property is to amenities like schools, transport, shops, parks or bike tracks? Remember advice like ‘buy the worst house in the best street’
- Checking with local council to research development plans scheduled for the area (e.g. new roads, railway stations)? Will they add to your property value or against it?
- Is this a property that has scope for improvement, renovation or extensions to cater for a growing family? Is the back yard big enough? Is there room for a pool?
- Is the area experiencing growth? A boom in apartments, cafes or shopping outlets?
- Ensuring you know how much you can spend and do your budget before starting to search to avoid disappointment. We all want the harbour view, beach cottage or mountain hideaway but what can you really afford and how much can you borrow? Talk to your finance broker.
If you are building or considering renovations in the future, it’s important to ensure you do not over capitalise on the property for the area in which you are building. In most instances the real estate market will only bear a certain level of sale price for a certain area. Do your research first and be careful that you don’t spend more on a property than houses in the local market are selling for. Speak to a real estate agent, research the internet to see what properties are listing and selling for, and make sure that the figures add up. Ideally whatever you are investing into the property should provide a return when you do go to sell.
But as this is going to be your long term home, it’s important to remember your lifestyle should take precedence over considerations such as resale value and rentability, as these will be offset by the value a better lifestyle provides.
Look out for our next two blogs outlining tips for:
Goal 2: Buying or building to sell in the next two to five years
Goal 3: Buying or building to keep as an investment and purchase another property in two to five years