How to Afford a Home in a Suburb That’s about to Boom
So, you’ve been doing your research and have found the perfect suburb. It’s got everything you need, plus it's in an area that seems destined for a boom in the not-so-distant future. What’s the next step? How do you get your foot in the door? And what are the options if you’re looking to enter the market in your dream suburb but are on a bit of a budget? We’ve broken down some of the options worth considering when hoping to purchase a place in a suburb that you think just might be about to take off.
Consider buying a fixer-upper
The well-known saying “buy the worst house in the best street” is well-known for a reason – it rings true! If you’re looking to get into the property market, but are on a budget, consider buying a house that needs some love, and fixing it up over time. If you’re scouting the market for a fixer-upper property, it’s important to keep an eye out of for a few things such as the condition of the property and its location.
Evaluating the parts of the property that require fixing when purchasing a house that needs some work is an important step, as not all fixer-uppers are created equal! It’s also essential to consider just how much time and money you’d be willing to put in to get the place up to scratch. While some properties only require somewhat simple changes such as laying tiles, replacing broken windows, updating kitchen cabinets or giving the walls a lick of paint, others may require much harder work such as replacing roofs, remodelling bathrooms or changing the layout of the house. Don’t forget, as with any property, it’s important to get the proper building and pest inspections conducted before closing, to ensure you’re not hit with any nasty surprises!
It’s also worth considering the location of the property – is it on a major road which may be too loud and busy for potential future buyers? Are there good schools nearby, and does it have easy access to public transport are all questions that may be worth asking, depending on the demographic of the suburb you are thinking of purchasing in.
Shop around to find a low-interest home loan
If you’re struggling with the idea of paying the mortgage on the property due to interest rates, it’s worth shopping around to see which ones are cheapest or suit you best. Home loan comparison sites can offer a wide range of different loan interest options to compare, to assist you in finding one that best suits your needs.
Another option with home loans is to go the route of an interest-only home loan. These home loans can be a good option for those wanting to get into the market, but finding the idea of paying a large mortgage amount daunting and needing some time to transition. Remember though, interest-only loans don’t stay interest-only forever. After an outlined period of time (usually between one and five years) you will need to begin paying off the principal on the loan as well as the interest. These loans also often mean you’ll be taking a bit longer to pay off your mortgage, as you will have only paid the interest on the loan for a set number of years.
Opt for an apartment or townhouse, rather than a house
If you’ve found an area you’d love to live in, but can’t quite afford a house there, one option is to purchase a townhouse or apartment there instead. Apartments are notorious for being cheaper than houses. For example, in Domain’s ‘House Price Report March Quarter 2018’ the median price for a house in Sydney was $1,150,357, while the median price for an apartment was $740,041.
There are perks and downfalls to owning an apartment, just as there are with owning a house. For example, with most apartments, the owner pays a strata fee which goes towards the maintenance of the building. This means you don’t need to worry about mowing the lawn or maintaining the garden, as someone will handle this for you. In contrast, this also means you don’t get to do much gardening (which, if it’s something you enjoy, could be a bummer), and will often have to share the grounds with other tenants. If you’re a fan of having a lot of space, an apartment might not be the best option, but then if you have lived in houses and feel like you’re rattling around and don’t need the space then that could be a plus. Many apartments give you access to facilities such as a gym, barbeque area, and a pool (that you don’t have to clean, hurray!), but this comes at the cost of strata fees that can be expensive, and annoying if you’re not using the extra facilities anyway.
Author Bio:
Sofia is a passionate writer from Sydney. She also enjoys decorating houses and engaging in home renovation projects. That is why she loves sharing her experience and advice with other people through her writing. Besides this, she loves technology and gadgets which can help us get through a busy workday.
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