“Hello and welcome back to weekly buying tips, I’m Dean Berman from Berman Buys.
Today we’re going to talk about the different types of first home buyers.
In my opinion there are 5 types of first home buyers.
The first being the one who needs a property asap i.e. the timeline first home buyer.
These are often determined by a changing employment situation and borrowing capacity, ending rental leases, changing moving arrangements or an incentive such as a government grant.
The second being the investor. The one who wants to make the most prudent choice with their first property.
These buyers usually rent where they want to live and invest in locations they can afford in and also believe will provide solid long-term growth and limited rental vacancy.
The third buyer is the owner occupier.
Usually needing to upsize or downsize due to changing family numbers either growing or shrinking. Often times the amenity, lifestyle, work proximity and schooling will have a much more significant impact on decisions, resulting in a more emotional process.
The fourth buyer is the overseas Australian citizen or PR, who wants a base in Australia in the future whilst also providing a rental benefit until such time.
They are a mixture of investor and owner occupier.
The fifth type of first home buyer is the buyer who has never considered purchasing but may have just inherited a sum of money or had a sudden change of fortune to enable ownership.
These buyers will probably look to occupy their very own space for the first time, but some choose to let the money work for them in an investment capacity.
Sometimes first home buyers fuse multiple sections together such as purchasing with the desire to buy a property in a timely manner, whilst keeping an eye on future potential because of changing circumstances.
So we understand the 5 different types of first home buyers.
If I could give three pieces of advice for first home buyers.
These would be.
1) If you plan on living in the property for a long time, sometimes it may make more sense to buy something you love and will enhance your life, rather than just buy it because it makes financial sense. i.e. the happiness versus money debate.
2) A property can be changed internally, in an almost infinite amount of ways. The location cannot be changed.
3) If you are deciding to buy an investment now as your first home or save to buy your first residence, consider what you can get for both now and into the future and whether it will place yourself in a better position. i.e. trying to build up a greater deposit through investing or waiting 5 or 10 years to hopefully afford the dream property.”