New research has revealed the top factors first home buyers consider when deciding what property to buy.
Mortgage Choice and CoreData’s Evolving Great Australian Dream white paper found good value was the top consideration, with 30.5% of buyers saying it was the most important factor when looking for a property to live or invest in.
This was followed by lifestyle and proximity to amenities.
“I am not surprised to hear that potential home buyers predominately look for a property that is good value, “Mortgage Choice chief executive officer John Flavell said.
“Good value is determined by a couple of factors, including: how affordable the regular mortgage repayments are for the buyer; and whether or not the home has the ability to grow in value over time.
“Regardless of whether a person is buying a property as an investment or something to live in, they do not want to feel financially stretched.
“Value is always an underlying factor that will influence and determine where and what a person ends up buying.”
As per the findings of the whitepaper, the second most important consideration for first home buyers is whether a property will provide them with the lifestyle they desire.
“Buyers don’t just set out to purchase any home, they typically have specific needs and future plans that they want their property to accommodate,” Mr Flavell said.
“They may be planning to start a family, they may want to be close to work, they may want a place that allows them to live with the in-laws, or they may just want a home with a good space for entertaining.
“At the end of the day, lifestyle is about more than just living in an area that is close to a good local café. Lifestyle is all about the home itself and the various things that it may offer the buyer.
“For example, some investors may want their property to deliver strong rental returns, so that they have more money in their back pocket to enjoy travel or a luxurious lifestyle.
“A property that boasts good lifestyle opportunities isn’t something that is purely sought after by owner occupiers, investors also want a property that will help them achieve their desired lifestyle.”
The third most important consideration for first home buyers in deciding which property to buy is its ‘proximity to amenities’.
“As the popular real estate saying goes, location, location, location. Many owner occupiers aspire to live in an area that is close to public transport, schools, parks, shops and restaurants,” Mr Flavell said.
“For investors, proximity to amenities is essential in being able to attract long-term tenants and increase the value of the dwelling.”