How Can You Afford to Buy a Property
How can you make buying a home an affordable prospect?
How Can You Afford to Buy a Home
Prices seem to be rising all around us. In fact, according to the last Consumer Price Index from the ABS, almost the only thing going down in price at the moment is petrol! And as we all know, one thing that just won't stop growing in price at the moment is property. Sydney's been leading the way for quite a while now, but lots of other cities have seen healthy gains too.
It's enough to make you think twice about whether you can afford to buy a home. But don't worry! With careful planning, you too can get into a property - you just have to know how. Let's look at how you can afford to buy a home.
By Doing Your Homework
Through careful planning with an agent, you might be able to find a property in your price range that suits you needs. For example, while not a majority, just over 10 per cent of Sydney's sales last year came in at under $400,000 according to CoreLogic RP Data. This means that even in growth areas, affordable housing isn't impossible.
Make sure to engage the services of an agent with expertise in the area where you want to buy, and take your time finding affordability.
By Thinking About the Long Term
If you're buying a property and are worried about price, it's important to think about where we sit historically. For example: According to data from the Real Estate Institute of Victoria (REIV), the median price of a home in Melbourne in 1966 was $9,400! Now of course, inflation will have it's part to play here, but what's important is that prices are constantly on the rise.
In fact, in the almost 50 years of REIV data, prices only had an annual decrease seven times. This means that if you buy a home, you're likely to continue seeing capital gains for the long term. So if you consider where you'll be in 10, 20 or 30 years, the benefits of a home surely outweigh the costs.
There are many other ways to make living in a home affordable as well: Picking areas like Tasmania with low prices, making sure you get a First Home Owner Grant when you can or even going the long route and buying land to begin with.
No matter which path you take, make sure you get the right advice for it - be it buying, selling or investing in your future.
Do you want to know more about how to buy home - why not play our Property Buying Game - it's a fun and easy way to understand the steps involved. Click here to play