Pick up any two kids drawings of their dream homes and you’re bound to notice a few similarities. A house with a triangular top and chimney, a door, one or two windows – and probably a few flattering stick figures.
Flash forward a few decades and your dream home options come with a lot more variety. Townhouse? A detached house? Apartment? Villa houses? Then there’s off the plan vs on. Suddenly those stick figures had things easy.
But choice should be exciting, not overwhelming – you just need to find the home that’s your right balance of location, style and cost.
On location.
Location – there’s a reason they say it three times – it’s pretty important. But it doesn’t just mean proximity to the city, it’s also about your lifestyle. How far is work? Are there decent schools in the area? Is the public transport reliable? And most importantly – is there a Grill’d?
These are factors that could add value to the property, but especially to your life.
What type of home are you?
Don’t have time to take the Buzzfeed quiz? Here’s a quick rundown of the pros and cons of each of the housing types.
Townhouse
Pros: Value for money, located within inner city, high demand when selling, extra security.
Cons: Less privacy (and possibly thinner walls), limited land, all those stairs.
House
Pros: Better land investment, outdoor space, flexibility to do what you want, privacy.
Cons: Maintenance expenses, higher costs (and higher bills), less likely to live Friends TV fantasy.
Apartment
Pros: Lower cost (and lower bills), safety in numbers, upkeep provided by body corporate.
Cons: Less space, less privacy, body corporate fees, can’t apply for Selling Houses Australia.
Estate
Pros: More space, privacy, security and luxury. You can drink sangria by the pool at 3pm without judgment.
Cons: The price tag, maintenance costs, tend to be further out of the city.
Something old, something new?
Differing properties have differing prices – but there are other factors to consider than what’s under the sold sticker. Maintenance, insurance, services and body corporate fees can all vary too – so keep your eyes peeled on the more hidden costs.
Buying off the plan or a house and land package means buy now pay later – plus you’ll usually get a discounted price with even more reductions on stamp duty. And with a new place, you’re more likely to get better technology, more modern designs and a better neighbourhood.
Whereas if you buy an existing dwelling, you’ll need to drop a sizeable deposit, with home loan repayments starting straight after.
In saying that, already established house or units are more likely to retain value in a slow market and have less risk than buying off the plan.
Lastly...
Since you’re likely in the early stages of buying, try to not be too bogged down in the scary stuff – do lots of research, figure out what’s important to you and hit up a few local inspections or auctions to get a feel for the process.
Buying a house is never an easy financial obligation. Find a home loan that’s right for you with ME.
This article is prepared based on general information. It does not take into account individual financial objectives or needs and is not financial product advice.