Chapter 1: What is the main topic discussed in this episode?
It's The Real Estate Podcast, brought to you by Ray White, the largest real estate and property group in Australasia. And welcome to another episode of The Real Estate Podcast, available on iHeartRadio and also Google and Apple Podcasts or wherever you get your podcast from. Well, coming up, we've got another episode from the podcast series, Let's Talk Property.
And we're discussing this all important question of when do I compromise on buying my ideal home? It's a question that many people grapple with when choosing to buy a home. And of course, you'll have that wish list, which is designed to cater for your everyday lifestyle and And that initial search will start with a burst of energy, excitement and enthusiasm.
At every open inspection, you'll hope to discover your ideal house in your desired location and all within that crucial, crucial budget. But unfortunately, it's time to put a bit of reality check into it because this really goes to plan. And it's made worse when a home buyer won't compromise on their expectations and fall down into a rabbit hole of disappointment and tears.
And in turn, this will exhaust their momentum and eventually they'll abandon the hunt or alternatively buy something entirely inappropriate out of sheer desperation. So to help us understand this better, we're joined by Rich Harvey, buyer's agent and CEO from propertybuyer.com.au. G'day Rich, welcome back to the Real Estate Podcast.
G'day, Craig. Great to be on the show again with you.
Yeah, great to have you back. And another Friday, already the 25th of February. March is going to be here very soon. Well, it's a great subject, Rich, today. Firstly, I want to ask you, what should people do when it comes for them to create that all-important property wishlist?
Look, Craig, a lot of people go out there and start the searching process with no strategy or thought about exactly what they want. It's like going shopping for a car and just saying, hey, I need a new car. But they don't have any idea of their budget, the make, the model.
When it comes to property, you've got to sit down with your partner or by yourself and write down a list of two things, your essential things and your desirable things. So get a piece of paper or get on your computer and just write notes.
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Chapter 2: What is the importance of compromising when buying a property?
And that process of actually writing it down helps to really clarify your thinking as a buyer. So you've got to write down the location. Where are your preferred suburbs? I mean, the first thing you should have done is gone to your finance broker and got a pre-approval and an estimate of what you can borrow and know your budget. I mean, that's the very, very first thing you have to do.
So you don't go shopping without money or a credit card. So don't go shopping for property unless you know how much you can afford. And then write down, as I say, the suburbs, the number of beds, bathrooms, and all the features of the home that you're looking for. And then start to think about, is it really essential to have that third bathroom? You know, do I really need a pool?
What is super important to me and what can I live without? And by writing down those things, you'll then have a much clearer target for what you can actually achieve when you actually start the searching process.
And what about compromise? Because everybody really should be thinking about compromising on certain things. What should they never compromise on, do you think?
Well, the obvious thing is you can't compromise on location unless you just don't have the budget. So the first thing you've got to look at is what's your journey to work? Where is your social network? Where's your friends located? Where are your recreational activities? And look at what I call the travel vectors that you have from where you want to live.
So you can try to optimise your lifestyle by choosing the position because once you choose where to live and you've bought that piece of real estate, you can't pick up the block of dirt and move it. But what you can do is when you've bought that property, you can modify it, you can renovate it, you can bring it up to speed.
So the things you shouldn't compromise is if you can afford it, don't compromise on the location. The other things to think about is the aspect and the slope of the land that you're buying on. What's the street like? I wouldn't be buying on a busy road. I'm never going to buy next to a petrol station.
I'm never going to buy next to an industrial park where there's potential for noise and pollution. All of those things are things you should never compromise on because once you've bought there, you're sure you can buy it cheaper, but you're always going to be selling it at a cheap price because it's got that impediment over the land. So they're the things that I'd look for.
And the other thing is if there's like a easement or some sort of restriction over the land, like it might have an electricity staunch next door or a stormwater pipe running around the back, they're things that you've just got to take into account if you really want to buy in that location.
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Chapter 3: How should buyers create a property wish list effectively?
Trying to time the perfect entry into the market is like an Olympic diver trying to do a triple pike reverse somersault and land perfectly and get a 10 out of 10. It's very difficult to do that and very, very few people achieve it. A far better strategy is to go, you know what, my budget is X, like, you know, $1.7 million. I need a three bedroom home in this location.
I'm going to go searching for it. So waiting to the market to cool is really a false economy. If you wait too long, and I saw this last year, Some people said, oh, to me two years ago, the market's crazy, I'm going to sit out. And then the market's risen 30%. Even if we have a small correction next year when interest rates rise, it's not going to go back 30%.
It might go back, say, a maximum of 5%. And even this year, Greg, the market is predicted to gross continually, even in Sydney and Melbourne, by another 5%. I don't think waiting for the market to crash or correct is a valid strategy. There's opportunities every week. I'm out there every week and we're starting to see a little bit of a turn in the market. There's a few less buyers out there.
Some of the results aren't as strong. So you've just got to be positioned for opportunity, have your finances ready, and it's better to own a property than to wait to own a property. You're far better off to get onto the property ladder and and enjoy capital growth and hold it for the long term, ride out the cycles.
Even if it does go down 5%, it'll go back up 10% or more the following couple of years. So get into the market, get your family established and enjoy the ride.
As always, Rich, plenty of great advice. And thanks once more for coming on to the Real Estate Podcast.
That's a pleasure, Craig. Great to be with you again. We connect you to the best real estate information across Australia. The Real Estate Podcast.
Thank you.
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