Set real targets for a first home

21st Jul, 2011

For many young West Australians, the dream of owning their own home is the ultimate goal and realising this dream can be an exciting achievement, says Affordable Living Homes sales and marketing manager Larry Scamaton

While some first homebuyers may have reservations about the affordability of purchasing their own home, here are some tips on how first homebuyers can achieve their dream.

Just like any purchase, the first step in home ownership should be to set a realistic budget that is going to be affordable for the foreseeable future.

First homebuyers should speak to a finance specialist (Affordable Living Homes has their own) in the first homebuyer market to work out their eligibility for a loan before looking at locations or home designs.

First homebuyers should remember that this home will be their first step into the property market and it is unlikely it will be their last home. As such, the first property does not necessarily need to be the dream home. It should be regarded as getting a foothold on an ever-rising property market.

Industry experts say that, on average, property prices have historically doubled every 10 years and it is expected that this trend will continue. With this in mind, first homebuyers should act now because it is unlikely these levels of affordability will be repeated.

Once finance is in place, buyers can make realistic and informed choices about locations, block sizes and house designs. It is important to be realistic about the location of the first home and bear in mind that this is unlikely to be a long-term address.

First homebuyers should remember that their first home is their biggest investment and when it comes time to upgrade to a larger home they will want to make sure they have purchased wisely in an area that will show strong growth.

Over the past months some very affordable land has been released in areas around Perth such as Ellenbrook, Aveley, Banksia Grove, Brighton and Yanchep in the northern suburbs and Piara Waters, Hammond Park, Bertram, Baldivis and Byford in the south. These areas are perfect for first homebuyers to purchase house-and-land packages.  Affordable Living Homes has designed house and land packages in these areas to specifically suit the first-home buyer.

When choosing a design, the same caution applies regarding sticking to a budget and selecting a home that will suit lifestyle requirements for the next three to five years. Most first homebuyers will be young couples or families with small children, so homes don’t need to be excessively large. Remember that the size of the home will make a difference not just to upfront building costs, but also the ongoing maintenance of the home.

Building a home is an excellent investment. Building in a new area means you will benefit from the natural growth that comes from the development of that suburb over time, as well as the ongoing increases in the price of land once the suburb sells out.

Additionally, when purchasing a house-and-land package at a fixed price, the homebuyer will benefit from the capital growth in property over the construction period. So by the time the first homebuyer picks up their keys it is very likely that their investment will already be worth more than what they paid.

If you want to find out more about how to build your first home you can visit www.affordableliving.com.au