Brisbane city a great option for 1st home buyers
Getting onto the property ladder can be a scary step and we meet first home buyers all the time who know their rent is probably more than loan repayments would be, but struggle with the decision. So for those considering inner-Brisbane apartments as their first home, here’s some tips:
I’ll never get the deposit! Ring a good mortgage broker and do what lots of us did to get a start, and talk to your parents. As the average first home buyer’s gotten older we’ve noticed more reluctance to seek parents’ help. But keep in mind that even if you have no deposit at all, mum and dad can, for example, limit their guarantee to just 20% of your first home’s price tag. So if you’re spending $400k the bank takes security over their place for just $80k (and your bank can often do this as a 2nd mortgage behind their bank). Once your home rises in value and you make repayments to reduce your loan below 80% of its value then you let the oldies off the hook. We’re amazed more first home buyers don’t use this opportunity.
When do I buy? On any measure, there is currently some great value on offer in established apartments. In many areas prices are down slightly. No-one can tell you with any accuracy where prices will go in the future but if you ask your parents, or someone similarly ancient, they’ll tell you they worried about the same thing when they bought. The end-of-the-worlders might be right, but history says real estate prices have always risen over time, so we recommend you buy when you’re ready.
Will I need to move to the ‘burbs?! Every single home-buyer needs to compromise, regardless of budget. But if life in the outer ‘burbs is a compromise you just can’t make (we hear you!) then be realistic – you won’t get 3 bedrooms near the city for $300,000. But you will get a tidy 1 bed apartment that’s walking distance from work and play. Work out what’s important to you and remind yourself this is your first home. Not your last one.
Don’t I need a 2 bed for re-sale? Two of the biggest demographic groups in Brisbane’s inner-city are singles and couples without kids. Neither needs a 2nd bedroom. Sure they’d like it, but when weighing up the options, that empty 2nd room with the ironing board and dusty gym equipment might be traded for a 1 bed apartment that’s modern, maybe with a view, or just more space. Some of our strongest demand is for 1 bed apartments because they’re more affordable.
A lot of well-intentioned friends and ‘property experts’ will give you advice to wait for prices to drop further. To not ‘get in over your head’ and to save like crazy until you have a big deposit (whenever that will be after tax, rent, living costs etc….). You shouldn’t rush home ownership because it is an important decision. But it can also be one of the rewarding things you can ever do and making the step can be a lot easier than many realise.
Even in Brisbane’s inner city.