Am I at the right stage to think about prop­erty?

Stanthorpe Border Post - - REAL ESTATE | INDUSTRY NEWS - By Erin De­lahunty

FOR most Aus­tralians, own­ing prop­erty is high on life’s list of pri­or­i­ties, but when is the right stage to take the plunge?

Michelle May, a Syd­ney-based prop­erty flip­per-turned-buy­ers’ agent, said it all came down to per­sonal cir­cum­stance.

She said there was no “per­fect time” to buy a prop­erty and no such thing as be­ing “too young or old”.

”I re­cently met 80-year-old clients who wanted to go from a town­house they owned to a one-level apartment. They were fit and healthy and wanted to make sure they could live in­de­pen­dently for as long as pos­si­ble,” she said

May ex­plains the "fun­da­men­tals that come into play" when de­cid­ing when to buy.

In­come now and in the fu­ture

A his­tory of a sta­ble, reg­u­lar in­come, with the prospect of the same in the fu­ture is a must-have.

Life stage

If the “need for sta­bil­ity is ris­ing”, buy­ing might be a good idea, May ex­plained.

“Hav­ing your own place means you can have that pur­ple bath­room you’ve al­ways dreamt of. When you’re a ten­ant, you are at the be­hest of the land­lord, who may up the rent reg­u­larly, stop you from mak­ing changes and also turf you when it suits them,” she said.

Tin lids

The im­mi­nent ar­rival of chil­dren can have a big im­pact on buy­ing de­sire. "(It’s about) the need to cre­ate that fam­ily home for their child, where mem­o­ries are made and pic­tures are hung on the wall."

But don’t try to pre­dict the mar­ket…

Never choose to buy be­cause of what some­one says, which may or may not hap­pen with the mar­ket.

“If you are ready to buy, then buy to­day, as hav­ing your own home is a long-term ex­er­cise and any short-term rises and dips in the mar­ket re­ally don’t mat­ter. If you find the right place, do your re­search and buy it,” May said.

Fac­tors that mat­ter

May said the most im­por­tant fac­tors for po­ten­tial buy­ers to con­sider were their abil­ity to ac­tu­ally pay a mort­gage and a will­ing­ness to com­pro­mise, which was al­most al­ways re­quired.

“Be re­al­is­tic and hon­est with your bud­get,” she said.

The rec­om­mended path

While ev­ery buyer and sit­u­a­tion is dif­fer­ent, May of­fers ad­vice for peo­ple at dif­fer­ent life stages, from sin­gle mil­len­nial to re­tirees.

The sin­gle mil­len­nial

”The sooner you can get on the prop­erty lad­der, the bet­ter, as it can set you up for life. My ad­vice would be to go at it alone if you are in a sta­ble job and you can per­haps get help from your fam­ily,” May said.

”Ev­ery dol­lar you sink into your prop­erty now will re­ward you in the fu­ture, and while it may sound bor­ing and re­spon­si­ble, if you are a per­son want­ing a fam­ily for the fu­ture, you will prob­a­bly never have as much free time or free cash as when you do prior to hav­ing kids.”

The cou­ple buy­ing a first home

Be con­ser­va­tive and go for qual­ity rather than quan­tity.

Also care­fully con­sider the im­pact of los­ing one in­come if kids are part of the plan.

The re­tiree

”Be­ing a re­tiree means bor­row­ing from a bank will be re­stricted and you will prob­a­bly only be able to use the money from your last prop­erty sale,” May said.

”In which case, I’d say, en­joy it! Buy what you want, but think about the fact that this prop­erty needs to also work for you when you are per­haps less mo­bile,” she said. Think about strata levies too.

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.