Buying your first home is an exciting and emotional step. As a home buyer you will likely have an idea of the perfect location, design and features that you would like in your new home.
However for some, there may be a difference between what our ideal/dream home looks like and what our first home will be. That's because often what we want and what's within our budget can be two different things.
As you start your home buyer journey, it may be a good idea to take some time to set realistic expectations for your first home.
Here's some things worth considering...
1. Explore affordable locations.
When searching for your new home, make sure to have a clear idea of what you can afford to borrow and how much your repayments will be. Once you know this, you can research your preferred locations to get an idea of property prices.
This will help you to understand the market and explore other locations if you need to. You may be able to find a more affordable area so you to enter the property market with a smaller deposit and lower repayments.
You can visit www.realestate.com.au to do this.
Remember... buying a home will often require some lifestyle changes so you should work out what's most important to you. For example... will 15 minutes extra travel time to work really stop you from owning a home?
2. Consider smaller homes.
If an alternative location simply isn't an option for you then you could consider a smaller home. Explore other types of properties such as townhouses and apartments in the area.
These can often be more affordable than house and land and be a great low maintenance option. If you are highly set on house and land, then consider a smaller block of land with a smaller home.
3. Buy an investment property?
If you really don't want to downsize or re-locate then why not considering your first home as an investment property?
This may allow you to purchase something affordable in a different location and allow you to still get into the property market. Over time, with the growth in value in your property and additional savings, you might be able to eventually buy your dream home.
You would however need to consider the risk of investing so make sure to get advice from a qualified expert first.
4. Continue to wait.
If you really cannot downsize, invest or re-locate then you could wait until you can afford to buy your ideal home. However, keep in mind that property prices will likely increase over time.
This could make it less affordable to own in the future and you may need a higher deposit. The bottom line is that you will need to determine what is more important... is it owning a home or waiting for the perfect home to appear...
Remember, your first home doesn't need to be your dream home. Try to think of ways that you can adapt to your first home and make it work for you.
5. Think about the alternatives.
If you haven't found a home that ticks all the boxes then try to consider all the alternative options. Compare affordable homes in different areas and determine if there are any luxuries you can live without.
Buying a home is a big step and it's not always an opportunity that comes along often in our lives. You should also consider the alternative if you decide not to buy a home. What if house prices go up? Will you be happier renting? What if you don't get this opportunity again?
Although you may have some fear, don't let fear alone hold you back from making a very exciting and rewarding step. Surround yourself with a team you can trust to support you and get the help you need when you need it
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