With supply constraints and soaring prices showing little sign of easing, buying a dream home may seem out of reach, but experts maintain strategic compromises made today can go a long way in your property journey.
“Property is a long-term game,” Realmark Urban Residential Buyer’s Advocate Angela McGrath said.
“Most first homebuyers are not purchasing their forever home first – they are buying their first step. Step one creates options for step two, and this mindset shift is critical in a competitive market like we are experiencing currently in Perth.”
This change in mindset is already evident in the market, as Area Specialist Sales Associate Reilly Cunningham said buyers were willing to compromise more, offer higher and make a move quicker than ever before.
Ms McGrath said the biggest mistake first homebuyers made was waiting to find the perfect dwelling, which often cost far more in the long run.
“You are buying access to the market, not perfection – the goal is momentum,” she said. “Once you are in, time and equity start working for you.”
Mr Cunningham said a first home would allow buyers to capitalise on market growth, as well as enable those previously renting to instead be building up an asset with their mortgage.
“This, over time, will allow someone to build up significant equity to leapfrog to a more expensive property with a smaller loan amount, which they otherwise may not have been able to finance with their income,” he said.
Mr Cunningham said the approach towards flexibility or compromise could differ depending on whether buyers were beginning their foray into property or were already in the market.
“If you are a first homebuyer, are looking for investment or are otherwise out of the market, there can’t be any flexibility when prices are rapidly increasing and you are missing out on market growth,” he said.
“If you are already in the market, since you are benefiting from the growth already, you can afford flexibility on your area, your house and so on.”
While making compromises on your new abode’s must-haves is often necessary, not all aspects of a property should be treated equally.
Ms McGrath said buyers should prioritise things they could not change or which were expensive to change.
“Location, land component, layout, natural light, parking, zoning and strata fundamentals all matter more than kitchens, bathrooms or paint colours,” she said. “Cosmetic issues are usually the cheapest problems to fix – structural and location issues are not.”
When determining whether your purchase has strong future potential, Ms McGrath said to focus on long-term suburb performance, infrastructure, school zones, transport and supply levels.
“A property does not need to be perfect to perform well – it simply needs to be well positioned in a location with the potential to outperform the market,” she said. “It is also important to assess whether the property will appeal to future buyers or renters, not just suit your current needs.”
To avoid making as many of the same compromises next time, Mr Cunningham said expert support could make a difference.
“Use a buyer’s agent who analyses properties thoroughly and who works on your behalf to negotiate the best deal,” he said.
Ms McGrath said buying smart, not chasing a dream, was often the difference between getting ahead and being left behind.
“Strategy, due diligence and local knowledge matter more than ever,” she said, adding that buyers should understand their borrowing capacity, keep an eye on equity growth and stay aware of market conditions.
“I encourage buyers to review their position every few years, so decisions are proactive, rather than reactive.”