It can be difficult knowing where to start when buying a home, whether it’s your first, or your next. The first and most obvious decision is your purpose.
Are you a first home buyer, looking for your next move or will it be an investment property? Here we’ll cover the most important considerations, applicable to all property purchases.
What are your priorities?
Make a list of what’s important to you. Get a piece of paper or open your favourite notes app. Grab a cup of tea or coffee and set aside some time. When brainstorming, write down ALL IDEAS that come to mind.
If you have a partner, children or other family members, get their input too. Often you won’t realise it, but those closest to you probably know you better than you know yourself! If you’re a first home buyer, speak to a few close friends who’ll know you well. Don’t forget furry and feathered family members too, and consider their needs in your new home.
If you’re buying an investment property, your priorities may be different. You might focus your research on rental demand, yield and capital growth. However, don’t forget, just because you won’t be living in the home, someone else will. These considerations will still apply to most people.
It’s easy to end up with a long wishlist, which may not be realistic. Once you have your list, prioritise it by what’s most important for you and your family. As you’re browsing through property listings and attending inspections, these will be your key considerations.
Be sure to check out our Top 5 tips for first home buyers, these also apply to seasoned buyers and investors!
Things to consider
From speaking to many real estate agents and buyers over the years, there are some clear patterns around important features. Everyone’s needs and wants differ, but these are worth considering. Have you decided what type of property you want? If not, check out our guide: Should I buy a house or apartment?
I’ve always found it most important to focus on things that can’t easily be changed later. This rule has served me well over the years, so hopefully it can help you too.
1. Location
Once you’ve bought, you certainly can’t change this one. The old adage about real estate “location, location, location” is as true as ever. Buying the right property, in the right location could have a significant impact on your capital growth as well as rental return and demand. Consider distance to shops, public transport, schools, cafes and restaurants.
2. Orientation
It’s easy to overlook this one. Browsing online listings, agents will show a home at its best. You might fall in love with a beautifully styled home, with lovely lighting, the photoshopped roaring open fire and lush green lawns.
However, it’s worth pulling out a compass app on your phone. A home that has living areas facing north will be ideal. You’ll benefit from maximum natural light and passive heating and cooling. Your home will capture the winter sun and avoid the harsh summer sun. Not only will this make your home much more pleasant, you’ll save a lot on heating and cooling.
NE facing rooms are also good. You’ll get plenty of natural light and slightly more spring and autumn heat. West facing rooms will get the hot afternoon summer sun. So it’s a good idea to plant some deciduous vines or trees to shade from the summer sun, but allow winter sun in.
South facing is best kept for bathrooms, laundry, garage and storage spaces. If your bedroom faces south, you’ll be cranking the heater in winter and reaching for the light switch year round.
Don’t worry, even if you can’t read a map, reading a compass is simple! If you use an iPhone, Apple includes a compass app on your phone. Android users, I like GPS Test which is free. Open the app, holding your phone horizontally, point the top towards a door or window. Then simply see which direction the arrow is pointing towards.
3. Kitchen and Bathroom
These two rooms play a major role in your home. The kitchen is often called the heart of the home, and for good reason. Is the layout functional and spacious enough for your needs? Is there enough bench and cupboard space? A new oven, cooktop or dishwasher is an easy fix if they’re not to your liking. Adding more cupboards or bench space isn’t.
Similarly with the bathroom. You’ll want to ensure the layout and space will suit your needs. If these spaces aren’t to your liking and you’ll want to renovate, you should factor in the expense. Kitchens and bathrooms are two of the most expensive rooms to renovate in a home, so be sure you’ve done your homework before taking on the project.
4. Floorplan
Your home is your sanctuary. You want to ensure you have enough room to relax, sleep, store all your belongings and set up your home office or workshop. Also consider the flow between rooms, are you happy with the layout?
Replacing worn carpet or sanding scratched floorboards is straightforward. Moving walls and enlarging rooms will require a sizable budget.
5. Hot water, heating and cooling
This is a tip I learned many years ago from a fellow home buyer at an inspection. Check how long it takes for hot water to start flowing in bathrooms and kitchens.
If the water heater is at the other end of the house, you’ll be wasting a lot of energy and water each time you turn on the tap. Not to mention, complaints from kids and other family members!
Similarly, does the home have heating and air conditioning, and is it working? To retrofit these appliances isn’t generally a big inconvenience, however it can add up to a significant expense.
If anything isn’t at the level you’d want, try using that as a bargaining chip to negotiate a lower price.
6. What is your budget?
Now it’s time to work out how much you’re willing and able to spend. You may have a figure in mind, or an idea of how much properties are selling for in your area. This is where talking to a professional can help.
You’ve probably run your numbers through a bank’s lending calculator. However, before you start making offers, you’ll want an accurate figure.
We can compare loan options and explore the borrowing capacities of various lenders. Did you know there can be a massive difference in your borrowing capacity between lenders. As much as several hundred thousand dollars.
Once you’ve settled on a lender, we’ll apply for pre-approval. This gives you peace of mind, knowing how much the lender should be willing to provide. If you have any questions, send through your details below or just give us a call.
