– The mistake many first home buyers make –
Written by Dre Diesel
With the promising property price rises in Australia, especially Sydney with a strong predicted rise in property value, there is no better time for first home buyers to enter the market. But with that said, there is only so much land in Sydney, with density increasing at an astounding rate. Investors now look into expanding to North West and South West of Sydney, with a large number of houses being built over the next 10 years in areas such as Austral, Box Hill, Riverstone, Rouse Hill, Catherine Fields, Leppington, Gregory Hills and Marsden Park which will open up thousands of jobs and developmental opportunities, offering good returns on investment.
First home buyers can now access the market easily, many first home buyers lack experience and give in to the pushy salesperson without fully understanding what is truly more suitable for their needs.
With the cap of $750,000 for the First Home Owner Grants offered by the NSW Government, duplexes, terrace and complete House + Land are now well within reach for first home buyers who are considering property and land for investment purposes.
It is important to understand exactly what you are looking for when making these purchase decisions. Although the duplex, and terrace can potentially be less expensive than a House + Land with a lower deposit which seems attractive in the short run, many purchasers do not understand its implications long term.
Duplexes and Terraces also often lead to paying for land value a year down the track and not at current market price, meaning that with the astounding rises in land value over months, investors might be paying significantly more than what they initially bargained for.
Other considerations include a lack of your own backyard, heightened noise, lower rental return and lower financial value through banks and valuers who may view stand-alone House + Land as far superior than a duplex.
With this being said, duplexes are seen as more accessible than House + Land, but in the long run is this slight price difference worth the difference in investment return.
House + Land now run at the forefront of investment choices, and should become a primary consideration for first home buyers who aspire for a stable home and valuable investment which will hold its worth over the test of time.
I am specialised in these areas across Australia:
New South Wales. Queensland. Victoria. South Australia. Western Australia
Headquarters: Sydney. New South Wales. Australia
Industry: Real Estate. Land Acquisition. Building. Construction
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