Unfortunately most Australians can’t afford the best house on the best street. For that reason, buying real estate is a constant compromise between budget, location and the physical attributes of the property.
With that compromise in mind, what’s more important when buying a home: the location or the property itself?
The power of location
Whether you’re buying a first home, a retirement home, an investment or a place to start a family, location will always be at the top of your mind. You might consider proximity to schools, work, public transport, shops, bars and cafes. You’ll probably think about the safety of the neighbourhood, whether it’s noisy or quiet and its overall reputation.
Data from the Real Estate Institute of Victoria shows that these considerations can have a massive effect on the price of property. In fact, property in popular East Melbourne close to everything go for around $4 million on average, whereas next door in Collingwood the average home is $2.7 million cheaper. Similar price disparities between locations can be found in every capital city.
What’s more, it’s common knowledge that buying the worst house on the best street is usually smart practice. This, along with the ludicrous prices in Australia’s most popular suburbs, suggest that location is the most important factor in many home buying decisions.
Finding a home that’s liveable
Location may be important but sometimes there’s more to a decision. Families may need a minimum of three or four bedrooms, pet owners may want a generous back yard and the renovation-averse may want a new property that’s ready to live in right now.
The interplay between these requirements and the location of a property is where things get difficult. Most won’t be able to afford a spacious, brand new home with a large back yard and all the features they’re looking for in Darling Point or East Melbourne.
This is where compromise is key. The most desired locations are often very similar to the ones next door, and yet they are often $1 or $2 million more expensive. In Toorak, Melbourne, homes go for over $4 million on average but down the road in South Yarra they go under $2 million on average.
Location is essential but so is finding a home that suits your unique needs and your family. To find out what you can afford and where, contact our team today.