Can you afford to buy in the area you want to live in?

December 15, 2014
Rikki Stanley

The majority of first home buyers who indicated that they may not be able to buy in their preferred suburb are still committed to climbing onto the property ladder, according to Mortgage Choice’s 2014 First Home Buyer Survey. 


Daniel Meade, your mobile home loan expert from Mortgage Choice in Brisbane, explains how new research has revealed from the opinions of more than 1,000 future first time buyers,  that over 54% of those who plan to buy a property within the next two years will not be able to afford to buy in their most desired area or suburb.


Why not?  


Put simply, for most, (almost 89%), the area is out of their price range.


Are you in the same boat?


If you can relate to this scenario, it doesn’t necessarily mean you can’t buy at all.


It just means you might have to buy elsewhere first, then consider using your equity from this property down the track, to buy in your dream suburb.


Another option to consider may be buying an investment property elsewhere, and renting in your dream suburb. This option still gets you onto the property ladder, but the bonus is that you get to live in your preferred area, while generating rental income from your investment property.  


Some would argue it gives you the best of both worlds. For some, renting while bringing in rental income can be a better financial win than buying a pricey owner occupied property in the same desired suburb, and having to make the repayments on the larger mortgage.


Set yourself up for the future:


When the survey asked the first time buyers why they were looking to purchase property within the next two years, over half said it was because they wanted to ‘set themselves up financially for the future’.


This reaction indicates that even if first time buyers can’t afford to buy exactly where they would like to live, they can still see the benefits of buying a property, and would rather do it sooner than later.


Investment property first:


It is not uncommon to see first time buyers purchase an investment property, before they buy their owner occupied property.


This allows them to purchase where they can afford to buy and still live where they want to.


It also supports new research that has revealed that the majority of first home buyers simply believe they won’t be able to afford to buy in the area in which they want to live, so an investment property first strategy makes sense to at least get them onto the property ladder.  


Mortgage Choice’s tips for buying an investment property before an owner occupied property:


  • Understand what the property market is doing: Having a good understanding of the property market in the area you want to buy, and it’s surrounds, including the market’s ebbs and flows will help you to choose the best investment property for your needs and future financial goals.


  • Buy the right property at the right price – choose smartly – This ensures the investment will increase in value over time, and also be attractive to potential tenants.


  • Set your investment up so it suits your future plans- Make sure you can afford your repayments both now and in the future. Have a finance professional help you to structure your investment so that it suits your needs and circumstances for the long term, including when you plan on purchasing your owner occupied property.


For further information on buying your first property, whether it be an investment or owner occupied property, or any other topic, please contact your mobile mortgage choice broker, Daniel Meade on:


Phone 07 3833 9666,



Or simply click on the contact us tab on this page.


If this information has been helpful to you or might be relevant to someone you know, please share it.


Daniel is looking forward to helping you purchase your first property today.  Thanks for reading our blog.


*About the survey

Market research company Nine Rewards was commissioned by Mortgage Choice to conduct the 2014 First Home Buyer Survey. The online survey was conducted in late August 2014 and completed by 1,114 Australians who were looking to purchase their first home in the next two years or who bought their first home in the last two years. 


Important information

This article is for general information purposes only. It has been prepared without considering your objectives, financial situation or needs. You should, before acting on the advice, consider its appropriateness to your circumstances.

Posted in: First home buyers

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