What to do when you can’t afford to buy in your dream suburb?
When most people decide to buy it’s understandable that they want to live in a desirable location, however the problem with this is that lots of other people will want to buy there too, making it tough to afford the home you want.
Trying to break into a competitive market on an entry-level budget can be tough, however if you really want to move into a particular suburb there are a few buying strategies that might work for you.
Find a smaller property or a doer-upper
If you’re trying to find an entry-level property then you’re probably not going to be able to afford a big house with all the bells and whistles you want. Instead think about what is important to you – do you want a backyard or are you happy to live somewhere smaller to have modern conveniences? You will probably have to make a few compromises to get into a highly regarded area, so decide what you are willing to give up and go from there.
Buy with friends or a partner
It can be difficult to afford a home on one wage, particularly when you’ll be competing with a lot of couples on dual incomes. Buying with any other person is a big commitment though, so make sure that you only buy with a person you trust and whom you know will be able to meet their share of the repayments.
Okay, so you can’t afford to buy in your favourite suburb, but have you thought about its neighbours? There can be dramatic differences in property prices between neighbouring suburbs, even when they both have quick access to amenities and similar housing styles. Shop around and take a look at suburbs you hadn’t initially considered, if they’re next to a popular suburb then chances are their star will rise eventually too.
Rent where you want to live, and buy an investment property elsewhere
More and more people are choosing to rent in their ideal suburb, while investing in property located elsewhere. By doing this you can get your foot in the property door and still live where you want to. Properties in extremely desirable locations can be hard to find for entry-level buyers so this is a great strategy for those who want to buy property for long-term rewards, and who knows, eventually you might have enough capital growth or equity to buy in your dream area.
Try to be patient
If you’re looking to buy at the bottom end of the market then you might have limited choices available to you, and a lot of competition too. Eventually the right property will come along, but in the meantime, try to save as much as you can so that you can make a strong offer when it comes your way.