IS THE “FAMILY” HOME A THING OF THE PAST?
The good ole days of buying one home and remaining there forever is fast becoming an endangered species.
In my previous career as a Police Officer, I regularly sited lonely retirees struggling in their large family homes. The retirees had bought their family home 40 – 50 years ago, raised their children whilst covering the walls in lots of proud progress pictures and height growth marks on the wall. Hubby worked in one job, in the same company for over 40 years. The children grew up in that one “Family” home until they married and moved on, leaving Mum and Dad to remain in the “Family” home until they passed.
The world has since changed and people are more inclined to move when needed. Not only do they move for change of family circumstances, but they also move from job to job to gain the recognition or lifestyle they desire. This progress has seen families go from owning one “Family” home to many homes, depending on their situation.
Below are the most common property phases a modern family will go through.
- First Home – Young couple buying their 2 to 3 bedroom townhouse / unit close to where they work, café lifestyle living.
- Domestic Home – Slightly larger upgrade to 3 bedroom house on its own block of land because the baby is on its way. Somewhere kids can have space to run around freely.
- Upgrade Home – Upgrade for the teenagers to a 4 Bedroom property with two living areas, media room, large kitchen, two bathrooms and an outdoor living area with pool for entertaining.
- Lifestyle Home – Kids have left home, time to downsize to a minimum maintenance lifestyle property, 2 to 3 bedroom townhouse / unit close to water, café lifestyle living.
So, what does this mean for today’s home buyers?
Previously, when buying a property young couples only concentrated on one thing – finding a lovely home they could afford to live in. When buying a property, they never considered re-sale value or yield, as they never planned to leave. Selling and moving was rarely a consideration!
Home buyers today must now be savvier. Buyers must make sure they buy premium quality properties that will re-sell or rent out easily, when needed. Re-sale value, is just as important as purchasing value. Buyers need to ensure that when their lifestyle changes or that next big job offer comes in, they can sell and move quickly. Buying a lemon today, could mean being stuck on the market for 6 to 12 months, leaving them with no other option but to say no to the job offer they have always wanted. Worse still, take a loss on the sale of their home just to get out quickly!
Making sure the property has the potential for good Yield is also very important. Many buyers are getting smarter now. When they are ready to move on, they are turning their first home into an investment property. This is a great strategy, however if the property is low yielding this can sometimes put large amounts of pressure on the couples budget, or worst still, make them sell the property due to not being able to afford to keep it.
If you are looking to move into your next property phase and want to make sure you purchase with great re-sale value and potential yield expectations, contact EPA now to get the Essential Property Advice you need. Don’t get caught with a lemon!