Sports fans are usually keen strategists, so how can you transfer that skill to real estate?
Building a home requires plenty of preparation and planning, but it’s not as complicated as you think. You just need a good game plan.
To demystify the building process and celebrate Peet as the proud principal partner of the Perth Scorchers, we’ve created a home building strategy to start you on your journey.
Step one: Preparation and strategy
Nobody just turns up to a match without doing the training and prep first. In real estate, this means getting into good financial shape.
‘Training’ and preparing to buy a home means setting savings goals, tracking spending and talking to a mortgage expert to understand what you can afford.
Consider setting a savings goal and work towards that by adjusting your spending habits by limiting large purchases and spending on takeaway, clothes or other non-vital items. Start this step early too — lenders will judge where your money is going.
“Save as much as you can as early as you can,” recommends second-time buyer, Karen Nightingale, who recently downsized and built a new home with her partner at Peet Riverbank in Queensland.
“Set a savings plan or put aside a certain amount each pay cycle. Showing your ability to be disciplined will definitely help when the bank is reviewing your savings history.”
Young couple Kim and Corey, from Brabham in WA, found that living as though they were paying off their mortgage helped them save and create good habits for the future.
“Put away your future mortgage [repayment amounts] and act as if you’re already paying it,” they shared. “So, when you eventually buy, it’s not a shock to the pay slip and savings.”
The strategic part of financing involves figuring out how you’re going to buy your home and with what financing help.
If, like Karen, you’re buying your second or third home, you may be in a position to use equity to help you pay your deposit and secure a favourable mortgage.
If it’s your first home, you may opt to use a first home owners grant, guarantor or parental gift to help you out.
Whatever your position, seek multiple opinions from banks and brokers to help you plan your path to a win.
Step two: Assess the field
In cricket, you have to consider the local conditions as well as your personal strengths and style in order to put your best foot forward. The same can be said of the real estate market — you should consider market conditions, locations, prices and types of homes.
“As a young couple planning to start a family in the near future, [my partner and I] wanted to purchase land that was in an area with new playgrounds, childcare centres and schools all within walking distance,” shares Lejla Sivic, who recently built a home in Peet’s Cornerstone development in Werribee, Victoria.
Queenslander Karen made decisions based on a variety of factors, ranging from facilities, family proximity and how many properties were owner occupied vs. rented.
When evaluating the land, Lejla recommends reviewing all of its merits.
“Consider each lot carefully in terms of size, shape, easements, price etc — price shouldn’t be the deciding factor,” she reminds. “We found lots of large lots around 600sqm-plus that were cheaper than the 400sqm blocks. But once we did our research, we found that they had an odd shape or awkward easements, which required a custom-built home, coming at a much greater cost.”
Finally, before laying down big bucks, don’t forget to talk to your coach. Seek advice from your mortgage broker, real estate experts, buying agents, friends and family you trust or even your new neighbours.
Step three: Building your innings
The best Twenty20 players don’t try to slog every ball for six — they weigh up their options and play each ball on its merits. When playing in the big leagues, it’s important to take a measured approach.
When building, consider your lifestyle, the needs of you and your family, make a list of important features and consider compromises carefully.
For example, Kim and Corey had a list of must-haves, including a large pantry and a dining room for entertaining family, but they also compromised on finer finishes if it didn’t fit their budget.
Lejla, similarly, encourages people building to consider the resale factor.
“Invest in items that will add value to your home as if you’re planning to sell in the future,” Lejla advises. “Purchasing the most expensive stone bench top doesn’t necessarily mean that will be added to your house price, especially if you can buy one that looks the same at a lower cost. Consider items that will add a wow-factor and offer convenience to another family.”
Meanwhile, Karen invested in elements that were more aligned with her ‘forever’ home.
“Try to make it as much your dream home as you can afford, and work out what you can compromise on and what’s really important to you,” she says. “It’s somewhere you’re probably going to stay for many years — it’s your oasis — so make it as perfect as you can.”
All three Peet property buyers found going to display homes a practical exercise in planning and executing their build.
“I find going to display homes gives you such inspiration and ideas you may not have considered,” Karen notes. “Comparing inclusions and prices lets you decide on a builder. [You can also] take lots of photos to look back and compare, and then customise things you liked and things you may not have liked as much.”
With these tips under your belt, you’re set for a prime summer of success — just like our Twenty20 players.
For any real estate need either Buying or Selling or Investing , contact me either via email or phone given below.