I am frequently asked ‘Are we in a bubble? Is housing affordability a problem? It’s a very hot topic in the news right now, so I wanted to give my take on it. Now when it comes to these conversations, they are mostly talking about Sydney and Melbourne. Queensland it still a very steady market with buyers and investors coming from Sydney and Melbourne, because they view Brisbane as a market with great value and great yields. Here are my thoughts, with three tips on buying a valuable home.
1. Lower Your Expectations
Personally – I disagree with houses being ‘too expensive’ in Brisbane, I actually think it’s people’s expectations that are too inflated. You’re never going to find a place in the inner city, or somewhere that’s freshly renovated on a large block of land with an amazing view for under $500,000. You need your expectations to be in line with how much money you have to spend. Be realistic with your budget and search for homes that have underlying potential.
2. Look Beyond the Pricy Suburbs
The high priced locations and suburbs will always make the news, but you need to get creative and be flexible with your house hunting. You will be surprised at the kind of value for money you may get by just broadening your search horizon by a few kilometres outward. For example, locations like Ashgrove or Enoggera that aren’t far away from the high priced neighbourhoods like Paddington can provide great value options.
3. Stick to Your Budget
Make sure to stick to your budget. Don’t go out of it, you don’t want to get caught when interest rates go up. Interest rates are low right now, but my advice has always been to do the calculations on an 8% interest rate. That keeps a buffer to make sure you can afford any changes. Keep at least a 20% buffer when you plan to buy a property to make sure to keep up with those repayments. If you’re living in your home I also recommend paying off as much of the principle as you can, so you can start creating more equity.
So there you have it! Hopefully this was useful to you and it has helped you get tips to buying a great property. Get creative with your ideas, real estate is a long-term investment and it could make all the difference in your end results. If you’d like some help finding your own property, feel free to give me a call anytime on 0405 000 219. Either way – happy buying and all the best!