Buyers are beginning to take a different approach to the property market by prioritizing price over location, according to a new survey.
The rising cost of mortgages over the past two years has caused this switch in buyer focus.
As an experienced real estate agent, I understand why 56% of buyers told a Coldwell Banker survey they now put the cost of a property above their desired locations.
If you are considering buying a property soon, reflecting on how you intend to approach the market is essential.
Everyone has a budget, of course. But the best buying decision is made by optimizing your choice of locations.
There is no joy in purchasing in an area you do not like simply because of affordability. You risk buyer’s remorse in this scenario. Many folks will cut their losses after a couple of years to find an area they can enjoy. This can be an expensive mistake.
Location has the strongest influence on the future value of a property.
If you believe real estate is your path to creating personal wealth, location selection is critically important.
Only 50% of respondents said location was their most important consideration. Splitting the numbers by gender, 60% of women and 48% of men are now putting price ahead of location.
The survey also found only 31% of respondents said they had bought their dream home, meaning 69% decided to compromise.
Sometimes compromises must be made, but I recommend you resist becoming price-focused.
Below, are some property-buying tips, and if I can assist you with your property needs, please do not hesitate to contact me.
Lifestyle – Your routines and hobbies should be a significant consideration when seeking the most suitable location for your next home.
Amenities – Look at the availability of transport, schools, shops, restaurants and cafes. Properties with these amenities close by are a much better prospect for value growth.
Commuting – Don’t shrug off this issue. If your work travel is exhausting, you will soon tire of your new property. Always build this factor into your decision-making.
Future – Work with your agent to understand the future plans for your neighborhood. If new amenities are being built, such as a railway station, the area could be a good investment.
Security – Local crime levels are a heavy influence on local buyers. Do your research to make sure you are buying into a desirable neighborhood.