Your First Home Won’t Be Your Last
The first question most first-time buyers ask during a meeting is “how much can we afford”. This is a question for a broker and we usually recommend our clients to speak to a broker before booking an appointment with us. So, they’ve got an understanding of what the affordability is, now the next question they ask is where’s the best location that they can afford.
In reality they care more about the “where” but they know they are limited by the “how much” The further you move away from the CBD the further you move away from the places of intrinsic value and the land drops in value quickly. A simple calculation first home buyers figure out early in the buying process. That the further they move out the cheaper prices get and the bigger the houses get.
The hidden issue the majority of first home buyers don’t realize is new estates have prolonged and stagnant growth phases after they have been built with little to no further value addition possible which homogenizes prices and slows growth. Where as well located land consistently rises.”Your” First Home is always an Investment
It’s important to purchase a property in a better area then it is to buy a bigger house. Your first home is going to be temporary, think about whether you need that extra spare bedroom or living area for the next 2-5 years. Sacrificing location for size may seem attractive but it could cost you your hard-earned savings or worse, shackle you to that house for decades before you can afford to sell.