Is your heart set on living in a specific suburb? Maybe it’s a short distance from your work, you grew up in the area, you want access to a particular school there, or you really like the homes there.
Home prices increase due to buyer demand in popular suburb pockets. It means the hope of residing in a particular area is isn’t attainable for many, especially first home buyers.
But sometimes, checking out the suburbs near your dream one, frequently referred to as “brides-maid” suburbs, can open up homes in a buyer’s price range.
Look a bit further afar, particularly if you know nothing of the area. It can give you a wider base to begin your search on. Switching suburbs can gain you access to another bedroom, it can give you a backyard, it can move you from townhouse into house territory. There are many advantages.
When helping buyers in search of their new home, there are four things that a good agent will ask them to compromise on: raising their price range, lowering their expectations of size, purchasing an older home, and remodeling, or expanding their search further afield.
Of course, you will also need to compromise some things if you decide to live in a bridesmaid suburb.
These suburbs are less costly because you need to make concessions. They are inexpensive for a rea-son. However, if you list down a wish list and agree to compromise on certain things, you’ll be amazed how your dream suburb matches the so-called bridesmaid suburb.
Assessing sacrifices like commute time, or additional walking distance to stores and cafes, often doesn’t measure up with considerably lower mortgage repayments. And there are many of these throughout the capital cities.
For example, a family home in Williamstown has a median price of $1.3 million, but in Altona (an inner southwestern suburb in Melbourne), which is just one suburb away, can save you $500,000 on mort-gages.
In Brisbane, Ascot is an established blue ribbon suburb, well-known for its verdant streets and time-less Queenslander homes. But one kilometre away to adjacent Hendra, the median home value is down by $300,000.
In Sydney, a perfect example is Mosman, with a median home price of $3.7 million. But in Naremburn, which is just a 10-minute drive away, has a median home price that is $1.8 million lower than “bride” suburb Mosman. Aside from cheaper, this bridesmaid suburb has a café culture, that highly regarded lower north postcode, or similar distance to the city.
It is a long term play if you buy in a bridesmaid suburb play. Being located adjacent to a more favoured suburb means there is a high probability that the neighbourhood will be gentrified over the years, which can only support your outcome if you decide to sell.
You benefit from the drag up effect, particularly if it is an adjacent postcode and it has not yet become popular like the original suburb you are looking at.
Expect to get an overflow from other similar-minded buyers as well, so gentrification is a major deal when you are considering the neighbouring suburb.