The great Australian dream might be changing but property ownership still sits high on the wish list. We all crave that patch of land or, in many cases, compact but cosy apartment. It’s a dream that can seem hard to achieve, especially now that the average price for an Australian home has surpassed a million dollars.
That’s where being able to look beyond the price tag can help turn your home-owning dream into reality, says buyer’s agent Bronwen Stacey, owner of Sunshine Coast-based Home Scouts and secretary at the Real Estate Buyers Agents Association of Australia (REBAA). “First-time home buyers need to be ready to compromise and find something that’s well located and solid,” she says. “It helps to understand that this is a stepping stone. Buy well and be happy to compromise, knowing upgrades can happen over time.”
Kristian Zefi, CommBank home lending executive manager at South Australia’s Unley branch, agrees. “We’re increasingly seeing first-home buyers rent where they want to live and invest where they can afford.” Here, experts share their tips on how house-hunters can find a great buy.
Where to begin
The perfect location is different for everyone—do you need to be close to work, schools or family? Decide what really matters and start there. “Look beyond the aesthetics and the styling and focus on fundamentals,” says Stacey. “The biggest thing is location. You can change a property to some extent but you can’t change the location.”
A great way to get the scoop on an area you’re considering is to connect with CommBank’s lending specialists. They can help you out with free suburb reports containing useful information like schools, median property growth and rental yield. You can also be connected to a local lending specialist for tailored insights from someone who knows the area well.
Surprising boost factors
Some “nice to haves” might also be features that add value to your property in the future. “Look at orientation, floor plan, light and noise levels—all of these contribute to how a home functions,” says Stacey. “Things like no shared walls are an absolute advantage.” Garden space or, in an apartment, direct access to a courtyard also count as assets, as do car spaces in urban areas. “Storage is another thing that first homes and units often don’t have that add value,” she notes.
Look for potential
While a bigger floor plan and two bathrooms might make your purchase more appealing, there are other features that can increase a property’s worth. “What’s the renovation potential for the property?” asks Stacey. Simple structural fixes, such as turning an oversized living area into an extra bedroom, can add both practicality and value. Underutilised spaces like laundries can sometimes be reconfigured or enclosed balconies can become studies.
Watch for red flags
Don’t forget to keep an eye out for anything that may devalue your purchase, too. “Things like easements or bushfire and flooding risks can really impact the value of your property,” says Stacey, who notes that locations on busy roads or next to developments can also be deterrents. “Be aware of things that can impact future capital growth.”
To check on the “health” of a strata property such as an apartment, remember to investigate the body corporate records and how much money is in the sinking fund.
Consider passive income
Being open to renting a room in your new home could be a boon when it comes to applying for your first home loan. “CommBank has introduced room rental for owner-occupied first-home buyers,” says Zefi. “This can stretch your borrowing capacity.” Available to first-time homebuyers, it can be claimed for one room in the house but means you can include up to $650 income a month in your loan application, which adds about $50,000 to your borrowing capacity.
Speak to the professionals
Before deciding whether a property is right for you, Zefi recommends meeting with a home-lending expert to get a complete picture of your financial situation. “It’s important to understand what your current goal is versus three to five years from now,” he says. “We can also discuss things like suburb growth and an exit strategy if unforeseen things were to happen. We can also guide customers with auctions, property reports and upfront valuations.”
