“What would you do, Tom?” A question posed to me by a buyer this week as we came to the end of a protracted negotiation on an incredible home and the finish line was in sight. While the answer to that particular one will stay between those lucky buyers and I, I thought it might be a good opportunity to apply more broadly – what would I do if I were in the market to buy today?
I have bought and sold a number of homes, including several during the chaos of 2020-2022. 2 years later, what would I do differently?
First off, if I was a first home buyer I would do 2 things – speak to a broker about my capacity and what I could do to improve it, and then put my name down for the First Home Buyer Deposit Guarantee Scheme. That puts me in a position to know my capacity (and move quicker on finance once I find the right one) as well as have the extra flexibility of moving quicker if my deposit isn’t quite at the 20% (or even 10%) that I would otherwise look for. You don’t HAVE to spend the full amount, but its good to know you have options.
Next, I would work out what I could afford in different areas and price points and work out what was fit for purpose both for a home now, as well as an investment if I were to move on in a few years. Speaking broadly, units up to about $350,000 and houses to $550,000 tend to offer a sweet spot of capital growth and rental yield. Either style of property below that mark (at this time) is either likely to be smaller, older or with other challenges. There can still be some excellent buys below that mark, but they are definitely thinner on the ground.
Tossing up options, I would give weight to lower BC fees in a unit (as long as the building is properly maintained) or quality of improvements over gloss. Shoddy paintwork is generally an easy fix and good bones is worth more than a pretty face (with less substance) in most cases.
With the right property found, I would move quickly. Tell the agent you’re interested and follow up quickly with an offer. Ask the agent about the owner’s goals and see what you can do to align. Sometimes a longer settlement, (or shorter) can make more difference than the actual price and make the difference between owning it or not. Contract in place I would be looking to the usual experts of conveyancers and building and pest inspectors to ensure everything lined up from contract date to settlement. Oh – and I would find a removalist – its not worth doing your back!