Buying your first home can be overwhelming, and Joe knows the level of anxiety is high.
“It’s really important that when someone buys their first home it’s a good decision, because the consequences are big if it doesn’t work out. It could cost somewhere between 50-100k to sell, and you lose your first home buyer benefits (like stamp duty exemption).”
Here are five things you may not have thought about that might help make your decision easier…
- Buying a big, new 4x2 house on the outskirts of the city might seem like a good idea, but think about what Joe likes to call the “action zones”. While these bigger houses in the outer suburbs do have their place (especially for young families who want to be close to particular schools), the closer you can get to major things, the better – like shopping centres, sporting and entertainment venues, parks and the beach
- Consider what your travel time will cost you in other areas of life. For example, “it’s not ideal for parents to be spending time on public transport when they could be spending that time with their kids, or each other.”
- The costs of living in the house include more than just what happens inside – travel expenses and travel time are big ones. “There’s an opportunity cost of spending time on a train when no-one’s paying you,” Joe reminds us
- Apart from the wet areas (like the bathroom and kitchen), most parts of the house don’t wear out very much. This means not everything in the house needs to be brand new – as long as the house is structurally sound
- If you’re not sure what constitutes a good neighbourhood, Joe suggests looking at the mix of demographics in the area. “Look for social engagement opportunities to mix up generations and create a more homogenous population, so it’s not just one type of people in the area. This makes it a more tolerant neighbourhood.”
Check out Joe’s tips in more detail.