There’s an old saying that many people buying a house follow – buy the worst house on the best street, or in the best neighbourhood.
But what does this mean for home buyers and what are the benefits in choosing a new build in a developing neighbourhood over a “pre-loved” home that needs some work in an established neighbourhood?
Moreover, should you be buying for the house or should you be buying for the neighbourhood?
While some people buy for the neighbourhood, particularly established neighbourhoods with all the facilities, some people would prefer to buy a brand-new home in a developing neighbourhood, despite a longer commute.
They don’t want to think about repairs or renovations and are lured in by the thought of walking into their home and everything being perfect and ready to go.
Let’s look at some considerations for both options.
Buying for the neighbourhood
- Location is critical as it can help drive growth. It also helps to gain tenants easily and quickly if the property is being used as an investment
- Proximity to facilities such as shopping, cafes, schools and public transport is desirable
- Location is generally at the top of the list for home buyers and renters and is likely to grow as one of the main reasons for choosing a place as affordable housing gets further and further away from employment
- Lifestyle – the lifestyle in an already established neighbourhood could suit what you do in your leisure time
- You don’t mind purchasing or living in a home that might need some renovations or repairs
- If you’re not sure how long you will live there, buying for growth is important
Buying for the house
- You have specific requirements you want or need in a house – easy disability access, historic features, wanting to build your own design
- Want to buy in a specific area
- You need a larger home for children to grow into
- If you’re not planning on selling in the future immediate growth may not be as big an issue
- Government grants – buying a brand-new home might come with Government grants such as first home buyers or stamp duty grants
Remember, buying a house is a long-term commitment and you may just end up frustrated if you buy something or somewhere you can’t deal with living, whether that be a home requiring renovation, or a brand new home a little further away from the facilities you need.
The type of property you buy and where you buy it comes down to personal choice, and for a lot of people there is a lot of thinking back and forwards about what will be the better option for their circumstances.
It isn’t a one size fits all approach, and you may find that you are better off considering both options to find something suitable for you and your family.