Deciding where to buy a home now can feel daunting, especially for young families balancing location, budget, and future plans. Do you buy now in an affordable suburb and move to your desired area later, or do you stretch your budget to stay where you want to be? This is a common dilemma for families in Sydney. The real estate market is both competitive and, at times, unpredictable. In this article, we’ll explore factors to consider when deciding on the best path forward for your family.
Balancing Budget, Space, and Location
Considering Your Priorities
Before you start your home-buying journey, it’s important to think about the order of what matters most: budget, space, or location. For many young families, location might be the top priority, especially if you want to stay close to work, particular schools, and family. However, Sydney’s Sydney real estate market means you might need to compromise somewhere.
Planning for the Future
First, consider your life over the next ten years. Will your family need more space as your children grow? Would moving further out gives you a better quality of life in a larger home, even if it means a longer commute? If you decide to prioritise location, will you still have room to grow in a smaller home? These are essential questions to ask when thinking about where to buy now.
Understanding Market Trends
Prices have soared over the last five years in some of Sydney’s most sought-after suburbs. For example, some suburbs on the Lower North Shore have seen a 64% increase in home prices over the past five years, with median house prices sitting around $3m – $4m. These numbers are daunting, but they highlight the importance of making a plan that fits both your current needs and future goals.
Looking Ahead – Market Movements
Real estate is a long-term game, and having a crystal ball sometimes would be nice! However, understanding past market trends can help you make considered decisions moving forward.
Current Market Trends
As mentioned, some suburbs in the Lower North Shore have seen significant growth, but so have other areas. For instance, some suburbs on the Northern Beaches have experienced around a 59% rise in property values over the last five years, with current house median prices of between $ 2 million – $3 million. If growth continues as it has, these suburbs could see median prices reach $4 million in another five years.
Considerations for Where to Buy a Home Now
When deciding whether to buy in your desired area or a more affordable suburb, keep in mind the potential future market movements. If you purchase a property in an affordable area, the equity you build could allow you to move into a more expensive suburb later. On the other hand, waiting for the suburb you wish to live in to become more affordable may not work in your favour if property prices continue to rise.
Real Estate – A Long-Term Game
It’s best to approach real estate in Sydney with a long-term mindset. Families generally consider it prudent to hold onto a home for at least 7 to 10 years. This allows you to build equity, ride out market fluctuations, and be in a better position when you’re ready to sell or upgrade. Buying now in an area you can afford, even if it’s not your dream suburb, could give you the flexibility to move to your desired area in the future.
Suppose you choose to purchase in a more affordable suburb now rather than renting in your preferred area for the next few years. In that case, you can plan for a move later without missing out on market gains. Suburbs on the Upper North Shore, which are more affordable, offer larger homes and more space, although they may be further from work or schools. However, the extra room and potential for future schooling options make these suburbs a solid choice for families considering a longer-term strategy.
Future Earning Capacity and Costs
When deciding where to buy a home now, it’s important to ask yourself whether your future earning capacity aligns with your housing goals. For example, buying in a suburb that aligns with your budget now and then moving to your desired suburb later may mean facing a significant price difference. Over time, a significant price gap could develop between more affordable areas and premium suburbs. In addition to this, you’ll need to consider the stamp duty on your next purchase. Think about what stamp duty is now on your budget, and if you upgrade later, this stamp duty cost will rise with the price of your new home.
Working out these numbers can seem overwhelming, but they’re important to consider when weighing up your options. If your future earning capacity allows you to comfortably absorb these costs, buying in a more affordable suburb now could be a smart financial move. On the other hand, if your finances are tight, it might be worth stretching your budget to buy in your preferred location today.
Lifestyle and Convenience
Focusing on financial considerations is easy, but your lifestyle is just as important. After all, no one wants to feel tied to their mortgage 24/7! When considering where to buy a home now, think about the daily conveniences you value most.
- Do you want to be close to family, work, and school?
- Or is having more space and a quieter lifestyle worth a longer commute?
- Are you considering areas like the Northern Beaches, which offer great access to both the city and beaches, providing the lifestyle you desire for the next few years?
The Northern Beaches is a little further from some top private schools. Still, it could offer the balance between space and convenience that fits your family’s current needs.
Some suburbs on the Upper North Shore are slightly further out but offer more room to grow and proximity to quality schools, which could be an advantage if you plan to stay in the area long-term.
Building a Community
Where you buy now will be the foundation of building new friendships and connections in your local community. It’s important to remember that moving in a few years may mean starting over in a new neighbourhood. While that can be exciting, it can also be challenging, especially for families with children who have already settled into local schools and social groups.
That’s why it’s essential to think carefully about your moving timeline. If you see yourself staying in one place for a while, investing in an affordable suburb now may not be a bad idea. On the other hand, if the idea of moving again in a few years feels too disruptive, stretching your budget for a home that works for your family long-term could be a better solution.
The Costs of Moving
In addition to stamp duty, other costs are involved in buying and selling property. These include agent fees, legal fees, removalist costs, and ongoing maintenance. These expenses can add up, so it’s worth considering how often you’re you’re willing to move. Each time you buy and sell, you’ll need to factor in these costs, which could make staying in one home for longer a more financially sound decision.
For example, where you buy a home now could set you back a certain amount, and stamp duty will be payable on that amount. Suppose you plan to upgrade in a few years. In that case, you’ll likely be paying a higher price for the home, plus potentially higher costs associated with the sale and purchase. Factoring these into your decision now could save you stress and financial strain down the road.
How Future Habitat Buyers Agency Can Help
At Future Habitat Buyers Agency, we understand how difficult these decisions can be. Balancing your budget, lifestyle, and long-term goals is challenging, and that’s where we come in. Our experienced buyers agent team is here to guide you through the home-buying process, offering expert advice on Sydney’s real estate market and helping you make the best decision for your family.
We don’t just help you find a house; we work with you to find a home you’ll love, one that suits your family’s needs now and into the future. Our transparent and personal approach ensures you feel supported and confident at every step.
Final Thoughts on Where to Buy a Home Now
Deciding where to buy a home now is a major life decision that requires careful thought and planning. Whether you choose to buy in a more affordable area now with the intention of moving later, it’s important to think about your family’s long-term goals. It’s also important to consider stretching your budget to secure a home in your ideal suburb and not just focus on your financial goals.
You don’t have to make this decision alone. At Future Habitat Buyers Agency, we’re here to help you navigate Sydney’s real estate market and help you make the best choice for your family. From assessing market trends to balancing your needs, our buyers agent, Sydney, offers personalised support to find a home that fits your lifestyle, budget, and future goals.
Ready to find the home you’re family will love?
Contact your trusted buyers agent, Sydney today,
and let us guide you through the process with care and confidence.
Disclaimer:
The information provided in this blog is general in nature and does not constitute financial or real estate advice. It is recommended that you consult with a qualified financial advisor or property expert before making any decisions based on the content of this blog. Future Habitat Buyers Agency does not accept liability for any loss or damage incurred as a result of reliance on the information provided.