A residential property can be costly, but you can try to choose a location with more affordable housing options, opt for a turnkey purchase or a home and land package, and apply for a house loan from a credible bank.
Buying a property in progressive countries like Australia can be challenging, especially with the sky-rocketing rates in the real estate market today. First-time homebuyers decide to compromise on factors like the location, type, and the number of bedrooms just to afford a house.
Good thing, you don’t always have to do that. There are ways to save you from being forced to compromise the key characteristics of your dream home while ensuring that your investment won’t turn out to be a financial burden in the long run.
The location directly affects the cost of a property. In megacities like Sydney, Melbourne, and Perth, land tends to be expensive. On the other hand, online magazine Architecture Lab reports that if you choose less populous areas in the inner regions of Tasmania or Queensland, you’ll be able to acquire properties for low prices. Still, as mentioned, you should not compromise the location to afford a house, especially if your lifestyle and work require you to stay in a specific city.
Why not go for a location that is neither too far, but not exactly within the premises of a coastal city? The dense population in cities is a marker of high housing costs, but to avoid these, you don’t have to choose an extremely rural area. Unless you’re ready for a major move, try house and land packages in the Geelong, Canberra, or Adelaide area, as they appear to have more affordable housing options and are near major cities as well.
A turnkey purchase allows you to choose a land then choose a house type you prefer from a set of available designs provided by the developer. This usually requires a 10% deposit, and you’ll have to reach an agreement with the builders for the final price. Once the house is complete and ready for turnover, you will pay the balance and attain full ownership.
Home and Land Package
A home and land package enables you to buy a block of land then decide what kind of house you want to be built in your property. However, instead of paying a deposit and balance, you’ll be provided with a building contract that states terms of scheduled payment for the certain stages of construction.
Compared with turnkey purchases, home and land packages give you more freedom and flexibility on the overall design and structure. These let you have the full assistance of a professional team of architects and interior designers without charging you additional consultancy fees.
You can apply for a housing loan in banks with flexible and extended payment plans. However, this can be tricky. The Balance advises that it’s much safer to use on-hand cash in purchasing real property. In addition, financial advisers warn buyers against taking loans for major investments to avoid future troubles.
This doesn’t completely mean that you should not borrow money from a bank to buy your home. You just have to ensure that your resources make you capable of paying for the monthly mortgage so your regular expenses won’t have to suffer.
A home is an expensive investment. Through careful assessment of different options, you can find a plan that works for you and your financial capacity.