Not much else can be as disappointing for people as being priced completely out of an area or suburb that they happen to be living in – and Generations X and Y are more familiar with this scenario than all other generations put together. A survey that was carried out by finder.com.au made mention that up to 1% of Australian property seekers had resorted to looking for homes to purchase outside of where they live.
A second survey revealed that a little more than 50% of buyers are nervous about buying in the wrong suburbs, and a little more than 70% of people buying for the first time are worried about the fact that they can’t afford properties in their chosen areas. If you happen to be a potential buyer and have been priced out of the Melbourne property market, the hints and tips below could enable you to find your dream home elsewhere.
Start Thinking Creatively
Margaret Lomas, who is from Destiny Financial Solutions, is an experienced property investor. She has built a portfolio that consists of around 40 properties in both regional areas and cities and mentioned that capital cities are not always the best place to search for properties and that city buyers wouldn’t always enjoy better rental yields and growth than buyers in smaller areas. Lomas further mentioned that suburbs expand in relation to various factors, which are not limited to large capital cities such as Melbourne.
Lomas also said that regional suburbs and areas have populations that are growing extremely quickly – in most cases, faster than the current national average. In addition, she said that these areas can provide a broader range of opportunities for employment and local government support. She further mentioned that many of the larger regional suburbs had now become completely self-sufficient.
Where to Start Searching
Nathan Birch, who is another well-known investor from Binvested, buys properties in Brisbane and the Gold Coast areas because of the fact that they often seem to be undervalued. He mentioned that there is a distinct difference between homes that are cheap and those that have been undervalued, and he also said that he considers the Gold Coast and Brisbane to be undervalued.
Birch also stated that growth rates in the Gold Coast and Brisbane are faster than Melbourne and Sydney and he felt that people would regret not purchasing in those areas in a few years’ time. He strongly recommended that buyers who had been priced out of the market in Sydney think about purchasing on the Central Coast instead.
Never Forego Inspections
No matter how much of a good deal a potential property seems to be, it is crucial to ensure that a full pre-purchase and termite inspection is performed before signing any purchase paperwork. Experienced inspectors will detect any issues that are present and let you know if they are repairable or not. This will go a long way in preventing stress and heartache at a later stage.
While it’s exciting to be buying a home for the first time, you must ensure that you select the correct property in a suitable area. Properties situated in suburbs that are deemed as being undesirable could result in you not being able to sell in future.