Despite the huge cash outlay, buying a home is not an expense. Property is an asset that appreciates over a period of time. Thus, buying a home is an investment that could pay out good dividends within a matter of years.
But not every buyer thinks of “investing in a home”. Some are in the market simply to find a place he or she can finally call their own. They’ve spent years saving, enduring lease renewals and instituting lifestyle changes so they can eventually afford their own home.
Your mindset will have an influence on how you define “good and affordable” real estate properties in Australia.
As a purely home buyer, you would want property with the amenities and features that suit your needs. It should be located in an area which is convenient for life and work. Of course, it must fall within your budget.
But a buyer who is looking at property as an investment would prioritize areas where demand is high and supply is tight.
Either way, the primary objective is to find good and affordable real estate properties in Australia. And here are 5 ways you can do it:
- Determine Your Budget
Whether you are a home buyer or looking for investment, your budget will determine the type of property you eventually end up with.
The first place to start is your cash flow. Many home owners end up relinquishing their homes because they could no longer keep up with the payments or maintain their lifestyle. Ask yourself these questions:
- Am I confident about my stream of income?
- If I avail of a home loan, how much will amortization account for my monthly expenses?
- What are my future expenses and how would a home loan affect them?
- Am I ready to assume the additional expenses related to home ownership?
If you are unsure, ask for the assistance of a Mortgage Broker. He or she can help you find out if you will qualify for a home loan program.
- Use Online Real Estate Platforms
There are many online real estate platforms that feature homes in different price ranges. When using these platforms, set the search parameter right away to “Cheapest First”. This way, you can view the most affordable properties and see if they fall within your budget.
Some of these online real estate platforms will allow you to define the geographical area of your search. Expand your search parameter so you can get an idea of which areas have neighborhoods or suburbs with the lowest prices.
- Hire a Buyer’s Agent
A Buyer’s Agent is a licensed real estate professional who works to protect the interest of the buyer. He or she is not the typical real estate agent who sells property. The Buyer’s Agent is there to help you find property to buy.
Buyers’ agents are a valuable companion in your search for a good and affordable real estate property. Some were listing agents before; they have built a sizeable network of contacts which they can utilize to find you good homes to fit your budget.
A buyer’s agent is regularly updated on real estate property developments. They know where you can find affordable homes with potential for considerable returns in the future.
Finally, buyers’ agents can also help you inspect prospective homes; negotiate contracts and all the necessary leg work required in the buying process.
- Consider Properties That are Under the Radar
Bondi, Mosman, Double Bay, Toorak, Balwyn and Brighton are proven real estate performers. Properties in these areas are in high demand and supply is tight; conditions that push prices up. They are also located in Sydney and Melbourne which are traditionally high profile cities.
As an option you should consider areas that are located outside these cities where home prices are on the low, affordable side.
Top of the list is Tasmania which continues to have the lowest mean price in Australia at $320,000. The west mining town of Zeehan has a median price of $88,379.
Victoria also has suburbs with affordable housing that range from $92,560 to $106,167.
Before you brush off Tasmania, keep in mind that it has strong economic fundamentals. Tasmania has the third lowest unemployment rate in Australia and the 36% annual growth rate in building approvals is the fastest in the country.
- Consider REOs and Foreclosed Properties
REO’s or Real Estate Owned properties are homes that have been foreclosed and are in the process of being resold by the bank. Generally, these are homes that have been neglected or abandoned and would need renovation.
Contrary to popular opinion, buying foreclosed properties is not an emotional decision. You are not dealing with the home owner but the bank which only wants to dispose of the asset and convert it into cash.
If you are experienced in negotiation, you might get a great deal for a good and affordable real estate property.
Australia has some of the most expensive real estate properties in the world. But with planning and by keeping an open- minded approach, you can find good and affordable real estate properties that will meet your needs as a home buyer or investor.