Relocation Relocation host, Veronica Morgan, explores the issues of aspect and budget.
Aspect versus location
If the best street in a suburb runs east-west, then half of the houses will have gardens facing south. But it is still the best street… It is better to compromise on the aspect than to buy on a busy road.
It is great to have a trusted person friend or family member give their advice when you are looking at a major purchase such as a new home. Especially if they have an eye for interiors. But if they lack a knowledge of real estate, you could end up making a silk purse out of a sow’s ear.
If in doubt, ask some local real estate agents what streets they consider to be the most popular in their area. Then ask them which side of the street is better than the other. Next question – what are the worst streets? Ask them whether buyers would generally prefer the lesser side of the better street or a north facing property in the worst street. Knowing the factors which appeal to local buyers is the key to choosing the property most likely to grow in value.
Our advice is to buy a fundamentally good house in a great location – it’s a bonus if it happens to face north. Location wins over aspect, every time.
Know your budget before you start looking
Claudia and Pablo set their sights on Bundeena as a great area for long term investment. The reasons are fairly straightforward and we certainly agreed with their thinking. Coastal areas within a 1-1.5 hour drive of the Sydney CBD should be set to enjoy ongoing capital growth – and Bundeena is as yet a little “undiscovered” so there is also potential for a surge in property values at some point.
The problem with this search was that Claudia’s research was outdated. She was thinking she could get into this market for under $500K. But this opinion was based solely on 6 month old internet research and they had never set foot in the suburb to see what they could have actually got for this figure.
Our trip to Bundeena turned out to be more of a research mission rather than a buying trip. Claudia and Pablo quickly discovered that there was nothing available under $500K. And we very quickly found out that they were not impressed by any of the properties available between $500K and $600K. But we did get an inkling that they could stretch their budget.
So, when we did show them the only property they liked, it was around $200K over budget. It’s a shame that they had not done more research before calling us in. If they had, they would have known their original budget was unrealistic. And we would have known they could have spent more money and searched accordingly. Instead, they very nearly missed out on seeing the only property that brought a smile to Claudia’s face!