When it comes to buying a property – particularly your first home – everyone wants it to be perfect.
But in reality, there’s no such thing.
So we really need to talk about the “C word”: Compromise.
According to realestate.com.au finance experts Bryce Holdaway and Ben Kingsley, of The Property Couch, there are no 10/10 properties, so in order to get as close as you can to your dream home, you have to evaluate your priorities.
“Essentially, we’re going to have to compromise somewhere to make a decision,” Holdaway says.
Holdaway and Kingsley say there are four key areas you should consider when compromising on your property: Price, location, land size and quality of the dwelling.
Price
Price is the most tricky factor to compromise on. How much money we need to borrow and/or save is pretty well fixed, “unless you win the lotto, or you’ve got an inheritance”, according to Holdaway.
Location
While you may think that you definitely only want to live in one particular suburb, compromising on exactly where you want to live can be beneficial. Will moving to the next suburb over give you a cheaper price, and therefore enable you to spend more?
“In some cases, if they’ve got no flexibility on the budget, they might need to move to a different location,” says Holdaway.
Land size
If you are dead set on a certain location, maybe you can’t afford to buy the four-bedroom house on a large block?
“If I don’t want to compromise on location, I potentially have to compromise on the land size and I may have to go from a house to a townhouse or a villa,” says Kingsley.
Quality of the dwelling
Another key compromise factor is the quality of the house or unit you’re looking at. If you’re not willing to budge on your dream location, perhaps settling for something that needs a bit of work is the best way to get close to your dream home.
“Am I going to buy something that’s a ‘renovate or detonate’, so I can get a bit of extra size in the land, or do I actually want the shiny taps and the new carpet, which means I might have to compromise on that land size,” says Kingsley.
“To get that 8/10 property I’m going to have to compromise somewhere to make a decision. It’s either price, location, size of land or quality of the dwelling, and it’s good to know that in advance.”
For more from The Property Couch, visit thepropertycouch.com.au or subscribe to The Property Couch podcast, available on iTunes or Android.
The Property Couch provides a general opinion based on current market conditions. These opinions should not be treated as investment advice. Always obtain advice based on your individual circumstances.
