When it comes to buying a first home, size really does matter.
Larger, family homes are usually beyond the price range of a first-time buyer and have prompted an increase in building approvals for new terraces, townhouses and duplexes.
The increase in medium-density approvals provides an opportunity for first-home buyers who don’t necessarily want to live in an apartment but cannot afford a detached home.
Demand for housing, coupled with limited land availability, has led councils to reassess the sizes and types of homes built in many areas.
As an example, the Australian Bureau of Statistics (ABS) says the land size of new properties has been consistently falling since 2012. The average home now sits on 13% less land than it did two decades ago.
Floor space is also shrinking in some areas, with Sydney and Perth both reporting falls of 7% from figures collected 20 years ago. And in NSW, the ABS says, approvals for semi-detached dwellings, including duplexes, terraces and townhouses, have risen 24% in the year to April.
Demand for smaller housing solutions is also being led by developers who are seeing their margins improve if they can maximise the number of homes on a block.
There’s stark evidence of this in Brisbane, where average land size has decreased 20% in the past decade, which is more than any other capital city, according to the ABS.
If you’re considering entering the market for the first time, we have listed a few tips to help you along the way. We hope you find them useful. In the meantime, we have some excellent entry-level properties available, and we’d be delighted to find out if any meet your needs.
Think long-term financial goals
Don’t rush into anything without considering all the implications. For example, if you’re a couple planning a family in the near term, then two bedrooms are essential.
Head, not heart
Sometimes, falling in love with a property can be dangerous. Firstly, you can set yourself up for disappointment, but more importantly, you might offer more than the property is worth. Don’t worry if you miss a property as there’s always another around the corner, sometimes, literally!
Diligent research
Research areas that are likely to perform strongly in terms of value growth. Suburbs that are “trendy” come with a premium. So don’t necessarily follow the pack. Make your own assessment of a good investment that suits your lifestyle.
Money talks
Know your budget and have the finance ready to go. Have a pre-approved loan in your pocket before starting your search. This way, you can move when you find that dream first-home.
Ask the experts
Talk to local agents about what’s happening in your target areas. You’re welcome to visit our office and check out the great opportunities we have available. We can also discuss price trends and any off-market properties coming up soon.