If you’re preparing to buy your first home, it’s a good idea to take a few tips from owners and investors who have done all this before.
Critical to your success is not what you buy, but your long-term strategy and approach to property ownership. So, think of your first home not just as a place to live, or where you’ll bring up a family, but as an investment that you will use to achieve your longer term financial goals.
Smart property buyers research the local market thoroughly – and they don’t just look at prices. They’ll also focus on the history of the area, take note of any planned infrastructure investments, such as a new train station, roads, hospitals or educational facilities and gauge the supply of properties coming on to the market.
Supply is critical to setting market prices. A low supply of properties means prices rise while lots of similar properties available for sale at the same time will soften prices. This can be an important consideration if you’re considering buying an apartment or buying a new property off the plan.
You should always remember that real estate in Australia isn’t just one big market but thousands of smaller ones, each performing differently. So pay attention to what is happening to property in the area you are especially interested in rather than worrying about broader media headlines.
As an experienced real estate agent in your area, I’d be delighted to talk with you about your options. The market in our surrounding suburbs is strengthening, and I think this is an excellent time for a prospective buyer to make their move.
In the meantime, here’s a quick list of behaviours exhibited by experienced property investors that might help you take a successful first step into the market.
- Think long-term and have your broader financial goals in mind.
- Use your head, not your heart. Don’t let emotion conquer all.
- Know the value of the property to you.
- Research areas that are likely to perform strongly and use your research. Don’t follow the pack.
- Know your budget and have your finance ready to go.
- Ask the experts. Talk to investors you know and get their opinions and ask your agent about how the local market is performing.