How to Buy in an Expensive, Unaffordable Suburb
Posted on: 27 July 2016 by James Pointon
The time has come to move with your parents to a better suburb. You have been waiting for this for a long time but one thought still remains - can I afford it? Read on to find out how you can buy a house for you and your parents in an "unaffordable" suburb.
Have you always dreamt of living in a particular suburb, only to have that dream chipped away as the prices continue to rise? You’re not alone. Many aspiring home owners feel disheartened at the thought of buying in areas that are dubbed “unaffordable”. Every time they think they have enough money to lay down a deposit, prices go up. However, there are some ways you can wiggle your way into desirable suburbs that seem to expensive at first. Here are our tips for turning the “unaffordable” into the affordable.
Alter Property Type
If you have been searching for a specific type of property, with specific features, it could be holding you back. Widen your search to include other types. For example, if you have been house hunting, try looking for a unit instead. Apartments are another great option, especially if you are living by yourself or in a couple and do not need a back yard or multiple car spaces. Finally, think about finding a professional agent to help you in your hunting - check websites like OpenAgent where you can find some great agents to help you in this endeavour.
More affordable prices can often be found just outside of expensive, high demand suburbs. Buying in an area that is just outside your dream location will still give you access to everything within your favoured suburb, such as schools and shopping centres, without the hefty price tag.
Renting Over Buying
You may not be able to afford a mortgage, but you may be able afford to pay rent in your desired area. Renting is growing in popularity as young Australians choose to rent rather than buy. There are many benefits to renting, including flexibility, fixed payments, no need to pay a big deposit and in some cases, access to amenities such as a pool or gym.
Investing Over Living
Another option is to invest in the area you love, rather than live there yourself (at least not at first). Your investment is likely to grow in value over time, especially in a high demand, high growth area. You can also use the equity from your investment property to eventually buy in your dream suburb, or you can move into your investment property once you have gathered significant rental yield.
Prepare to Renovate
A property in need of some tender love and care is one that will automatically be more affordable. If you are prepared to do some renovating, whether that means do-it-yourself fix-ups or a professional makeover, you may be able to snag a property in your dream suburb at a cheaper price. Plus, your elderly parents will really be happy that you are working to make their home more beautiful!
Of course, if you don’t want to sacrifice your three-bedroom house or the postcode, you can always be patient and wait until you do have enough money to buy in the area. However, it is important to be open-minded – this could take a long time – and if the perfect property is what you desire, you may have to adjust your expectations. Sometimes you need to sacrifice one if you want the other. Decide what is more important to you, and go for it!