Is buying new the right move in 2020? A perspective from a property strategist
OPINION:
Attending an open home is practically a Saturday sport for many property enthusiasts.
Whether you are a curious neighbour, potential buyer or just happened to be walking past at the right time, we have all explored multiple properties under the guise of ‘research’.
Along with my favourite café, restaurant and beach, now open homes are shut for the foreseeable future. Unless you can meet criteria that extends to you being a genuine finance approved buyer, solemnly swear to not touch anything, are in good health and of course not shaking the agent’s hand, the days of property viewing as a sport is a little lacklustre at the moment.
With the established property doors closing on people’s faces we are seeing a marked increase in the enquiry for new builds.
It makes sense, right?
We are in a collective stay home order but that doesn’t mean you can’t plant a seed for your financial gain. With all your new spare time you can make some inroads to your future.
Take for example the following things you would probably avoid doing on a sunny Saturday:
• Get up to date with your tax returns
• Review your financials – can you trim the fat?
• Get onto your broker (or find on)
• Find out what you can potentially borrow
• Start the online search
• Peruse floor plans, get really familiar with what you want.
What are you looking for in a property?
What are you willing to go without and what is a must have for your new property?
Property buyers all have different criteria and needs. If you are an investor you need to consider who your tenant is likely to be – consider age, gender, lifestyle.
For example, if you are buying a townhouse in a family centric location you need to consider that parents of small children will want a bathtub. They would like to be near a park and schools.
If you purchase in a location attracting double-income professionals, then chances are proximity to a primary school wouldn’t be as important as a café or a local restaurant scene.These tenants would be looking at commutes to the CBD using public transport and the ease of access.
If you are buying off the plan for your own home, then you can spend time looking at floor plans. Google maps and street view can deliver so much insight into a neighbourhood. Best of all, this research can be conducted in your pyjamas.
Use this time to set up your future
This is the time to absolutely shine on your new property search. Even if purchasing is not an option imminently you can discover what changes you need to make in order to borrow funds to proceed.
If you need to get rid of a credit card or a car loan, then focus your attention to this.
Set up a plan, a real strategy, with goal dates and realistic monetary benchmarks to achieve this.
This time in history is a window to set yourself up. Plan now, funnel savings as you need to and remember that if you are looking to buy new, times like this can help you set yourself for success.
