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Buying a home involves significant financial planning. However, apart from how you finance the property, choosing the right location for your home is an important factor that will determine the quality of your life in your new home as well as your future finances. For example, it doesn’t make much sense to buy a studio apartment when you are planning to expand your family, as you would outgrow the house soon. Similarly, buying too far from your workplace could cost you significantly in terms of the daily commute, even if you grabbed the home at a bargain.

 
What to consider before buying a home
 

Today, we share some aspects you must think about before deciding the location of your house.


The price

Before you decide to buy in a particular suburb, it makes sense to check the median price of properties in the area to ensure whether you can afford to purchase in the area or not.

You can find the information about property prices in different areas on various property listing websites. You could also order a free property report to understand the real estate market in your chosen area better – the report would apprise you of important numbers such as the median price, vacancy rate, comparable sale prices, etc. that would help you make an informed financial choice.

Your HashChing mortgage broker could help you crunch the numbers with the above information, apart from giving you a fair idea of how much you can borrow to shortlist the areas you can comfortably buy a home in. You can also calculate your borrowing capacity.


Infrastructure

The infrastructure and transport facilities in the area you buy your home in will significantly affect your pocket as well as the quality of your life, apart from the value of your property.

For example, family-friendly neighbourhoods with shopping malls, access to public transport, parks and playing areas are more attractive for families and known to fetch better rentals. Even the quality of schools in the vicinity adds to the value of a property by over three percent, according to research.

Talking of transport, suburbs with train stations fetch a better price than those without. A report from two Sydney-based planning consultancy firms cited in an article on Ruralco indicated that “houses within an 800-1600m distance from a train station had an added value of 0.3%. Properties that are 400-800m away generated a boost of 1.3% to their land value and properties based less than 400m from a train station, secured a significant 4.5% boost.” Apart from public transport, quick and easy access to motorways is another aspect to consider, especially if you drive down to work, to save on time and improve fuel economy. The same article on Ruralco mentions that “a property located within 100m of the main road can cause a capital gains loss of up to 7.6%. Properties situated between 100-200m, however, may only receive a 0.6% value reduction.”

Experts suggest home buyers must look beyond existing infrastructure to any future development plans as well, as these could impact the value of their property significantly.


Crime rate

Safety is an important factor when it comes to buying your sweet home. Yes, purchasing a property in an area with a high crime rate can jeopardise your safety as well as hurt your wallet in more ways than one. Not only would you find it harder to dispose of the property in the future as high crime rate is known to put off most home buyers but would also end up paying a higher premium on your home insurance.

You can get an idea of the crime statistics in an area through the information available on state police websites. Often, perception is far from reality, and it makes sense to look up the statistics as well as recce the neighbourhood at different times during the day to get an idea of how safe you feel there.


Lifestyle

Your home is an integral part of your life and should enable you to enjoy the lifestyle you are accustomed to. This means the choice of the suburb you buy in must not only depend on the price but also the facilities it provides and if they fall in line with your expectations of a decent lifestyle.

Whether you are looking for a quiet neighbourhood or a thriving nightlife – it is a good idea to jot down the things that matter to you. Is it the open areas, the sea, proximity to family or workplace, good take-outs or the schools in the area that matter to you? To lead a happy life in your new home, ensure that the area you choose matches the top items on your list at the least.


Buying it right

Once you have determined where to buy your home, it is time to plan the finances to fund the purchase. Currently, the Australian mortgage market is a competitive place, and home buyers can benefit from great deals and discounts. Simply by comparing mortgage rates online, you can find home loans at rates as low as 3.56%. Besides, you can ask for extra features in your home loan, such as an offset account or the ability to make additional repayments or pre-pay the loan early at no extra cost to save more money on your home loan. A mortgage broker can help you in your quest to find the best-fit home loan for your situation, at no extra cost to you. Get in touch with an expert here.

 

By Vidhu Bajaj,
HashChing Content Writer

 

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