Buying a first home is an exciting time. You’re scouring the listings of properties for sale, going to open homes and dreaming of the future in a place to call your own.
But first-home buyers often find their search involves a lot of fighting off the competition. Sometimes, the more affordable properties that appeal to first-timers can also be top-of-the-list for investors and developers.
Here are a few ways that you could get an edge and find your own space in the market, according to Trademe Property.
You may be looking for different things
The things that tick the boxes for a developer or investor may not always coincide with first-home buyers’ priorities.
Developers want a big section, and mostly don’t care what’s on it. The flatter and easier to subdivide, the better. They may also avoid properties with complicated access, shared driveways or any cross-leases.
As for investors, they would generally look for something that’s low maintenance and will appeal to a wide range of tenants.
Like to steer clear of their competition? If those features are not a priority for you, it’s a good idea to keep your eyes out for properties where the section doesn’t lend itself to being turned into two or more homes – perhaps because of the size or because of a lack of services – and where the house itself is a bit unique and might not be a tenant’s first choice. Investors tend to look for houses with at least three bedrooms, which may appeal to tenant families.
Can you compromise on the area?
Some investors like to look for houses that are near main arterial routes, public transport and areas where people work, to ensure that there is a steady flow of tenants.
If you’re willing to look at places a little further afield, or slightly off the beaten track, you may have them more to yourself.
Look for houses that you can do significant work on
While it’s true that developers often seek properties that require major redevelopment to extract their full value, investors are generally looking for places that need minor cosmetic work to quickly and cheaply increase their value.
If you’re willing to put in more time and effort – for example, buying a small house and adding an extra room or a studio, or tackling a significant amount of work in the garden – you might find you’re not facing as intense a battle for the property. Many investors won’t want houses that require significant work because it means an extra investment, and a period of time in which the property cannot be tenanted while the work is done.
Make sure you are pragmatic and strong-willed
You might never be able to completely get rid of the competition, but you can learn something from them.
Just like investors, being pragmatic is key. It’s a good idea not to get emotionally attached to properties, and keep in mind that you are looking for your first house, not a forever one. It’s OK if it isn’t perfect, as long as it works for you – even better if there’s the opportunity to add value. With a more realistic approach, it may be less disheartening if the home you like goes to another buyer.
Also, the process is likely to take a while: keep going to open homes and making offers on places you like – you have to be out there doing it to have a chance of success.
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Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current development or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.