When it comes to buying a house, the first question that people usually ask us is how to choose the right suburb. This, in fact, is a very important question as it sets the base for home buyers to search the market accordingly. Here are some of the key factors to consider when looking for the right suburb
The first thing to keep in mind is whether you can afford to buy a house in a particular suburb or not. There are so many people who end up buying a house that is more expensive just to keep up with the Joneses. But it is not a wise or well thought out decision, especially when you are making a large investment. Moreover, it will be a waste of time if you look at houses or go to different auctions that are way beyond your affordability.
Besides, you don’t want to live in a place which makes it harder for you to live a day to day life. If it adversely affects your lifestyle and you have to skip the annual family trips, reconsider your options. Everybody has a certain lifestyle and it is difficult to change it instantly. Therefore, buy a house that is affordable so that you don’t have to change your lifestyle altogether.
Another thing you should look for are the facilities available in the suburbs, such as childcare nurseries, school zones, shopping malls, transportation links, coffee shops, and more. People tend to buy houses in the suburbs that have these facilities. Finding the right suburb will be a lot easier if you know what you want. For example, it will be great if the suburb has a transport link as it will allow you to commute to and from work easily. You won’t have to walk for 15-20 minutes to catch your ride or drive.
When it comes to choosing the right suburb, the transportation, roads, and overall infrastructure matters a lot. In Australia, especially in Melbourne, people give importance to suburbs that have schools. Private schools are quite expensive. Having a good public school in the suburb will bring the overall cost down and you can easily walk your child to school. Similarly, a childcare in the same vicinity makes a huge difference for working parents.
This is a very important factor to consider when finding the right suburb. Different suburbs are suitable for different groups. For example, ethnic or religious considerations can be a driving factor for some people and they might prefer to buy a house where they can find people of same ethnicity or religion.
Many people fail to consider the ongoing cost of living in a particular place. Regardless of where you live, there is some sort of cost attached to it, for example, the insurance cost, maintenance cost, rates charged by the council, etc.
You should also keep the reselling factor in mind. There are so many people who purchase a property for investment purpose, which involves strategic thinking. They carefully choose the location, keeping in mind its desirability in the future. For investors, the right suburb is the one that will drive value in terms of security, size, plans to develop facilities in future, location, scarcity, and privacy. These factors make it easier for buyers to decide which suburb should they go for.
Create a Budget
Whenever you make a financial decision, such as buying a house, always create a budget plan. It is very important to make one to effectively manage your finances. If you earn income from more than one source, add it all up and find out how much you can spend. Similarly, list down all the expenses and try to keep some money aside as savings. By creating a budget, you will learn how to save down payment money in a year.
In addition to that, you should also take into account the future repayments so as to figure out where you stand financially and how much you can afford to pay. Are you planning to start a family? If so, incorporate the expected cost in your budget to see where you stand.
By keeping all these factors in mind, you will be in a better position to find the right suburb and make the right decision at the right time.