Buying your first property is an exciting time in anyone’s life. Unfortunately, it is becoming increasingly difficult for young Australians to find the necessary funds to invest in a property. This is why the average age of a first-time buyer is now 36.
The fact that people are forced to wait until they are older to purchase a house means they have less time to make mistakes or buy and sell homes to move up the ladder. In many cases, these first-time buyers will already be parents or will shortly be looking at becoming one.
In other words, you need to make the right decisions and invest wisely in your first property.
However, before you start, it is worth joining the Surf Life Saving home lottery. The lottery offers a top price of a house by the beach and most Australians dream of it. While only one person can win each time, entering may give you the winning ticket and make investing in your first house much easier.
For those that need to finance the house themselves, consider the following to make sure your first property is a good investment.
Check The Size
In the past, it was traditional for a first purchase to be smaller as it was simply a step onto the property ladder. However, when you’re purchasing as an older person you’ll want to consider how big the property is and what you are likely to need in the coming years. Specifically, think about the next 5-10 years. If you plan to have children the property has to be big enough for all of you.
Consider The Neighbourhood
The neighbourhood is important, especially if you’re planning to live in the house for years. A good neighbourhood with good schools and other facilities will help the price of your home to increase. The same can be said of an up-and-coming neighbourhood.
But, one that is in decline is likely to offer you cheaper properties and they will go down in value, potentially leaving you trapped there.
Don’t forget to think about ease of access to work and the other facilities you consider important, such as the beach or shops.
State Of the Property
A property can look fine and hide a multitude of issues. That’s why it’s essential that you have a survey done before you commit. It will highlight any issues with the property and allow you to factor these into your budget or negotiations. This is particularly important if you are facing structural issues which can be very expensive to deal with.
However, if you choose to take on a project property because it’s affordable, make sure you know what you are letting yourself in for. Repairs can be expensive and you may not have the skillset or time to do them all yourself.
It’s important to be honest with yourself regarding what you can do and whether it is worthwhile in the long run.
Don’t forget, you are likely to need finance for your first property. Make sure you shop around to get the best deal possible.