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Buying a house, WWYD?

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#1 LittleMissPink

Posted 21 January 2013 - 11:05 AM

Would you buy an "okish" house in a nice area, even though it may not meet all your needs (rooms size etc) just to get into the property market if you could?

Or would you wait, and save and hope that by the time you had enough to buy a better house that the prices had not risen so that you coudnt get into the market at all?

Edited by LittleMissPink, 21 January 2013 - 11:06 AM.

#2 tenar

Posted 21 January 2013 - 11:08 AM

I'd buy.  

Your ideas about what is OK, how much space you really need, etc, may change.  The nice areas will also tend to increase in price faster than the less-nice areas.

#3 MintyBiscuit

Posted 21 January 2013 - 11:10 AM

We did the former. Our house is on the older side, and the bedrooms are pretty small, but it's a massive block of land and there is plenty of scope for us to renovate or knock down and rebuild. We were also fortunate that we bought at the bottom of the market downturn, so our house is worth a lot more now than what we paid for it.

If we have a second child we could feasibly stay in this house for another 5-7 years. This would give us enough time to save the money needed to either sell and buy elsewhere, or do the renos/rebuild to make this place exactly what we need. If we'd waited to save a heap of money to get the "perfect" house that would last us through the entirety of our children's childhoods until they move out, we would still be renting. So if you can manage financially to get into the market now (and by manage I mean comfortably, not just scraping by), I would do it.

#4 LittleMissPink

Posted 21 January 2013 - 11:13 AM

For more info, the house is a small 2 bed, on a big block of land, in a town on the pacific hwy, quite busy. In a few years there will soon be a bypass going through, so less traffic and the prices will jump as it becomes more appealing, and quieter. But I can affoord the house now.

#5 MissingInAction

Posted 21 January 2013 - 11:16 AM

It's up to you and what you're happy with.

I sometimes wish we'd waited before purchasing our place.  It ticked all the boxes we thought we wanted at the time, but now I wish we had one more bedroom/spare room and lived a little further out of town.

#6 *Lib*

Posted 21 January 2013 - 11:17 AM

I'd wait. We built a built a house, that we are going to list this week, because its WAY too small for what we need.

#7 bright*future

Posted 21 January 2013 - 11:18 AM

I don't think the market is going to take off in a crazy way in the near future, so you have some time up your sleeve to buy the right house if it comes up soon.  Having said that, it sounds like you're looking in a fairly small area, so perhaps the right house won't come up in the near future, in that case, I'd think very seriously about buying what is on offer now.

#8 BadCat

Posted 21 January 2013 - 11:20 AM

I'd do the former.

I bought a cheap unit as a single person because it was what I could afford at the time.  When I met my partner and we decided to buy a house the sale of the unit provided a very nice deposit for the house.

Depends a bit on your time frame though.  Stamp duty can be the killer if you move too fast.

#9 ~spirited~

Posted 21 January 2013 - 11:25 AM

We bought a unit first, but in the area we liked. We are now in a house (stayed in unit 4 years, bought and sold at the right time) but 10 minutes further out. Doesn't sound like much, but in Inner Sydney it makes a huge difference. We have more than double the land, and an extra bedroom and bathroom than what we could have bought for the same amount in our old suburb.

#10 BellaMoja

Posted 21 January 2013 - 11:27 AM

hmmm its a big decision - we just bought our smallish 3bedder in a nice area of Sydney - just couldnt afford to go to the next price bracket and knew that if we waited that we would miss out due to priced. Our house increased in value by $235k in 3 years CRAZY!

#11 HRH Countrymel

Posted 21 January 2013 - 11:30 AM

QUOTE (LittleMissPink @ 21/01/2013, 12:13 PM) <{POST_SNAPBACK}>
For more info, the house is a small 2 bed, on a big block of land, in a town on the pacific hwy, quite busy. In a few years there will soon be a bypass going through, so less traffic and the prices will jump as it becomes more appealing, and quieter. But I can affoord the house now.

With those two bits of information I say do it now!

We bought 4 years ago and although our mortgage repayments are slightly higher than rent, and we have all the extra expenses that home owners have we are still streets ahead.  We also have a fabulous credit history now and equity that we can use for other things..

I can't see we would have saved $50 000 in the same time - but we have paid that much off the mortgage.

#12 janeway

Posted 21 January 2013 - 11:35 AM

I was going to say that personally for myself it worked out better in the long run to buy an older, smaller house next to the newer, bigger houses in the same suburb. It has taken 4 years for me realise & be at peace with the decision & only after lots of renovation! The fact that newer houses in my area have dropped considerably in price due to over supply means financially it was the best decision too, even with the renovation done (which was all DIY on a budget)

But in your case it sounds like it might be a good idea to buy now. Do lots of research about what your local real estate market is like & think about what you can do to the house to make it more comfortable for your needs while you are there (add storage, update kitchen, etc)

#13 MintyBiscuit

Posted 21 January 2013 - 11:38 AM

Given the extra info you've provided I would be jumping in. As BadCat said though it does depend on your timeframe - we've been in this place four years and are planning for at least another 3-5, possibly more. If you're looking at flipping the property within a couple of years it would have to be a huge jump in property value to make up for what you'd spend on stamp duty, removal costs and all the other associated costs.

#14 ms flib

Posted 21 January 2013 - 11:42 AM

Get in while you can.

Over 10 years, our 2 bedroom house more than doubled in value. We sold it and bought a fantastic bigger, older place nearby. We love it.

I can see now that buying the less desirable house first was a great decision.

#15 jibsi

Posted 21 January 2013 - 11:43 AM

It depends on what the downsides of the house you can afford now are.... Think about your lifestyle or family size.

From personal experience, a big mistake was to buy something with the thought "oh well we can just build a deck on later" when there was no outdoor living area etc.... The existing layout of the house needs to enable what you want to do later on. For example, if you like entertaining etc, don't buy a house with a kitchen at the front and bedrooms at the back. That deck you want to build on the back just won't work if your kitchen and living areas are at the front... But sometimes you don't realise this until after you've bought!!  

To be honest, with the current property climate I would wait and save up for something you want (or has the potential to be what you want) before buying just to get in. You can waste a lot of money buying and selling short term with stamp duty etc if you know the house isn't going to suit you. Also sometimes there is a good reason certain properties are "cheap".

I hope this helps :-)

#16 .:Natty:.

Posted 21 January 2013 - 11:53 AM

Down the road from me wink.gif

We bought smaller with and now I am itching to move as I have gone on to have 2 extras and we are literally living on top of each other. The house prices around here really haven't gone up since we bought. I wish we did wait and saved an extra 20 as that's all we would of needed to get 4 bdrms around here.

#17 MrsLexiK

Posted 21 January 2013 - 11:55 AM

Depends, if I was single with no plans of a family down the way then yes.  We have brought in the area that we wanted, I would love to upsize, but there is no real need to upsize.  We do have plenty of room, it would just be nice to have a larger backyard, bigger ensuit etc.  The issue we will be (and what we were facing if we bought even smaller) is that whilst we are getting equity into our house now and will then have a deposit, when we needed to upgrade we would of had a child or two and maybe be on one or one and half wages - and not wanting a large mortgage or perhaps not able to qualify with the children for the mortgage, so we would have been stuck in the small house.  It depends on the area, and what your plans are.  There is nothing wrong though with renting the place out if you out grow it and not buying but renting yourself.

#18 Rachaelxxx

Posted 21 January 2013 - 11:58 AM

I think if it's a house you can work on down the track or add rooms and such then yes go for it and get in while you can.

#19 Therese

Posted 21 January 2013 - 12:10 PM

I think I would buy now if I was sure I would be happy to stay there for a few years.

#20 epl0822

Posted 21 January 2013 - 12:39 PM

QUOTE (LittleMissPink @ 21/01/2013, 12:05 PM) <{POST_SNAPBACK}>
Or would you wait, and save and hope that by the time you had enough to buy a better house that the prices had not risen so that you coudnt get into the market at all?

It's sad but I don't think house prices will come down by much. There will be slight ups and downs but overall my prediction is it will become progressively worse. I would just buy when I can. I certainly wouldn't wait more than a few months.

#21 LittleMissPink

Posted 21 January 2013 - 12:53 PM

Thanks everyone, you have given me things to think about.

My family is not likely to grow any more at this stage, and although the area I am considering is not a sellers market at the moment, it has been in the past, and probably will be again. It really is a buyers market at the moment!

The design of the home could lend itself to extending in the future (kitchen/dining at the back) and there is plenty of space around the house (827sqm block). Its 2.5 bedrooms, which is fine, my girls can share original.gif

Its close to a couple of schools, off the main highway, but close to walk to shops etc.

I would be comfortable making the repayments needed, I am unlikely to increase my income at this stage (working part-time) but this may change in a couple of years. I would plan to stay in the house for at least 5 years, and if not, there is plenty of people looking for rentals here.

Thanks again original.gif

#22 Holidayromp

Posted 21 January 2013 - 12:58 PM

Buy now.  Get your foot in the door.  It sounds like the house has heaps of potential especially with the large block of land.  ATM you will be paying rent and trying to save on top of that - how about putting your rent amount each week plus what you would normally save on a weekly basis straight onto the mortgage and you would get ahead very quickly.  Also opt for weekly payments you save the most interest doing it this way and pay off your home quicker.

#23 FeralBee

Posted 21 January 2013 - 01:06 PM

I'd buy. It's what my husband and I did, we bought a little 40 year old 2x1 in a growing area. It was ugly as sin (still is, but we're working on that!) and too small for us in the long term, but you can actually do a lot with a small space if you plan it right.

In my completely non-professional opinion the most important things to look for are:
Is the house structurally sound? (Go for brick over weatherboard/asbestos if you can - not sure what your area's like but ours had lots of old asbestos houses)
How much do you need to do to live comfortably there? (Look at both the amount of work and potential costs)

#24 libbylu

Posted 21 January 2013 - 01:07 PM

It depends.
In most places in Australia the property market is going nowhere fast (house prices are on a plateau) , so if you are currently saving at a high rate and could afford a significantly better place if you waited and saved for two years, then I would wait a bit longer.
We bought a crappy house in a good area, but we bought it 8 years ago in Melbourne when house prices were increasing sharply, so that was definitely a good idea at the time, as if we had waited 12 months more we would have paid $100,000 more for our place and we were saving at a far lower rate than that.
It is expensive to sell and buy again as you have to pay stamp duty each time, so best to avoid having to do that.  If you must buy a crappy place, buy one you can renovate.

#25 Escapin

Posted 21 January 2013 - 01:07 PM

given your update, I'd definitely buy now. We have a saying in the investment industry, it's not about 'timing' the market, it's about 'time in' the market. If you can afford to get in now, and the right property is available, then I would go ahead and buy now.

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