Buying a home will likely be the biggest purchase you’ll ever make, so it’s understandable you want to get the most out of your money.
Particularly if it’s your first, while it’s important to set yourself high expectations and goals, becoming fixated on a certain type of property can make the process discouraging and frustrating.
One of the main challenges Sydney buyers face is the gap between what they want and what they can afford. Although you might want a four-bedroom home with a backyard nearby your friends and family, often these types of properties are out of reach for most buyers. Consider the type of home you want and who lives in them – was this property their first, or was it their second, third or even fourth?
It’s important to approach the property buying process with a realistic mindset. With banks tightening their mortgage lending criteria and rising interest rates, many buyers’ borrowing ability has decreased. This means that you may need to reassess your priorities and make some compromises in order to get into the market. The truth is that the perfect home within your price range might not exist, but there are plenty of great properties out there that can meet your needs and fit within your budget.
How to find great property within your price range
In order to find something that is both desirable and affordable, it’s important to think outside of the box and be open to different alternatives.
The first step is to map out your wants and needs. This involves considering what is essential and what is negotiable. For example, is the location negotiable? You may be surprised just how much money you can save by going just one suburb over. Is the number of bedrooms and bathrooms you’d like necessary right now, or will you need them later in life? Similarly, consider if the amenities are negotiable. You may want to live within walking distance of the station, but could you drive or ride to the station?
Once you have a clear idea of your minimum requirements, it’s time to drill down into the details. What kind of property do you want to buy? Are you set on a house, or could you consider a unit or townhouse, or perhaps a house with a smaller backyard? These options are often more affordable and can be a great way to get a foot in the door of the property market.
It’s also important to consider the condition of the property you’re interested in. While this might seem daunting at first, buying a property that needs some work or renovations can be a great way to save money, add value and really make it your own. Many older properties in Sydney have a lot of character and charm, and with some vision and creativity, they can be transformed into beautiful and modern homes.
Discussing your wants and needs with a real estate agent can be extremely helpful. A good real estate agent has a deep understanding of the local property market and can provide valuable insights and advice based on your specific needs and priorities. They may be able to suggest alternative nearby suburbs and can help you identify properties that fit your needs and are within your price range. They also often have access to properties that are not yet listed on public databases or websites. This can give you an advantage in a competitive market like Sydney, where properties are in high demand and can sell quickly.
It’s also worth noting that stamp duty rules have changed recently. If you are an eligible first home buyer in NSW looking for a property up to $1.5 million, you now have a choice between paying stamp duty or a smaller annual property tax. This means that moving into a bigger home in a few years’ time may be more affordable.
Ultimately, the key to finding a great property to buy in Sydney is to be flexible and open-minded. Remember that the first or even the next property you buy doesn’t have to be your dream home. Instead, consider it a stepping stone to that dream home. By being open to different types of properties and locations, you can find a great property and make your ownership dreams a reality.
Need advice? Call one of our offices today and ask to speak with a property expert. We would love to help you.
Prudential Real Estate Campbelltown | (02) 4628 0033 | campbelltown@prudential.com.au
Prudential Real Estate Liverpool | (02) 9822 5999 | liverpool@prudential.com.au
Prudential Real Estate Macquarie Fields | (02) 9605 5333 | macfields@prudential.com.au
Prudential Real Estate Narellan | (02) 4624 4400 | narellan@prudential.com.au
