If you're ready to buy your first home, congratulations! You're about to put your foot onto the property ladder, gaining a valuable asset and reliable investment. A home in the suburbs is a great start for young families who may not yet be able to afford properties near major business districts.
That said, not all suburbs are made equal. When hunting for your first home, take some time to consider if the suburb of your choice will benefit you in the long-run.
1. Local village amenities
Does the suburb you're looking at have access to shops? The "village" of a suburb says a lot about its vibe and lifestyle. This is the part of the suburb with the greatest concentration of retailers, cafes and recreational areas. You, or your tenants, should want this area to feel safe, pleasant and convenient, as it's where people living in the area will go for leisure, chores and to catch public transport.
Look for a suburb village that has both a great feeling and a range of amenities.
2. Future developments
You might also consider finding a suburb that is, or will soon be, undergoing infrastructure improvements. These might even be more concentrated around the village and generally include things like broadband upgrades, footpath widening or new streetlights. New businesses are also a good sign that the suburb has a bright future ahead of it.
These suburbs might not have the most comfortable feeling at the moment, but developments may contribute to a better community vibe and growth in property value as the suburb becomes more desirable.
3. Proximity to schools
Choosing a suburb with well-performing public schools could impact the affordability of your home. If you or your tenants are looking to send children to the best school possible, it's wise to locate suburbs with great public schools, rather than relying on private education.
This is because the costs of sending a child born in 2018 to private school for their entire education is estimated to cost about $475,342, according to the Australian Scholarships Group's Planning for Education Index. That's a considerable amount of capital to be considered on top of the cost of a home.
4. Potential resale value
You won't necessarily want to live in the same place, so when it comes time to sell you'll want to earn back the cost of the home, and ideally, some extra. It's a good idea to avoid suburbs that seem to be stagnating - always be on the lookout for signs of growth and work with your mortgage broker to identify the best long-term investment property.
For more guidance in managing your first home, speak to us today!