It is no surprise that many first-home buyers keeping up-to-date with the latest real estate news are experiencing a fear of missing out. Interest rates are at a record low, controls on public auctions have been relaxed, and the prices of some homes have been reduced.
These conditions may benefit first-home buyers, however, the number of homes for sales in April declined 11.9% year-on-year because of the COVID-19 lockdowns and subsequent economic instability.
With fewer choices of homes for sale, first-home buyers need to make sure they are financially ready to purchase, are able to make a quick decision but without making the wrong decision.
Keep in mind what’s important to you and don’t approach the process of purchasing a property like trying to snag a bargain item from the sales rack. The best bit of advise is to be ready and make that quick decision before your competition or you will end up being the bridesmaid over and over again and you will miss out!
Location is crucial
Picking a location is rather personal, but there are several major signs that buyers should watch for. These include convenience, proximity to work, transport, and lifestyle choices like parks and cafes are essential. Though they may not be the priority of first-home buyers, another thing to consider is local schools.
Remember that a dreary house can be upgraded, but its location cannot be moved
First-home buyers should take care not to get wooed by beautifully presented or re-modeled properties that might be in bad locations especially if they have a limited budget. If a home is located on a busy main road, you can’t move it. As beautiful as the refurbished kitchen or bathroom it will always be rated as a C-grade property and will affect the resale value.
Experts recommend choosing a home that is near public transport but not located directly on a train line.
Find out if any traffic congestion or flight paths runs close to your house of choice to prevent any disappointment because of noise pollution down the road.
Focus on layout and structure
After taking into account the location, buyers should focus on searching for a home with a floor plan that fits their present lifestyle, thus preventing the need for major costly renovations.
The cost of any renovation that is needed for a home should always be considered in the budget from the beginning. While a house might be beautiful or cute to you, what you need to look for are things that cannot be changed. It will cost a lot to move the kitchen, bathroom or laundry, so to be sure the floor plan fits your needs.
First-home buyers can benefit from properties with good bones that you can update or add some value in the future – like a period home, a period terrace or a tiny flat in a small complex, so there’ll be that element of uniqueness.
If you’re planning to buy a unit, a point to consider is optimal orientation to promote natural light and airflow. The ideal orientation is north or north-east, which is something you cannot change.
For buyers who are thinking of beginning or growing their family while residing in their first home, buying a home with room to expand can prevent upsizing too quickly.
Preferably your first home, if you can pay for it, should have some space to expand. A tiny yard would be ideal. If a third bedroom or a second bathroom is within your budget, it might suspend you growing out of the home.
Buyers should look for features like a bathtub in a house if they are going to have young children or an expanding family, because something as basic as a bathtub could be a deal-breaker.
Establish relationship with selling agents
With the number of properties listed for sale currently down, local agents possess a vast amount of knowledge on future properties for sale.
Currently, the supply is low and there are not many properties for sale, so talking to an agent will give you information on what properties are coming up and point you to other listings that best suit you.
Place yourself on the radar of mediators in your area to put you in the best position when new properties for sale become available.
Now go out talk to some agents, get your finances in order and find your new home!