Home loan seekers to follow the Dollar

Savvy first time home buyers follow the dollar

Planning your first home purchase

Savvy first home buyers should buy their first home where there treasure is. For most that is where they earn their money.

First we had the “Sea change” as baby boomers moved to a place near the sea. Then we had the “Tree change” as they moved to affordable acerage. Then it was the “Oasis Change” as home buyers changed their priorities with rising ocean waters and long term dries forecast for the future.

With thee sea change, the tree change and the oasis change, the profile was of the baby boomer. They had equity and they did not need to worry about a job income.

But things are different for the Gen X and Gen Y buyers. A 30 year mortgage has to be paid down, at least for the first 5 years so that equity can grow to give the first home buyer the capital to invest in rental property or the next and bigger home to suit their growing needs.

And the only way that will transpire is for the new first home buyer to buy a home reasonably close to work and or transport to get to work. Not just the current job, but where there is an abundant and diverse supply of alternative work opportunities should things not pan out with the current employer. “One employer towns” can be a killer of home values should the employer, move or go under. It happens.

There is no need to consult a hop-spot guru for divining the right place for you to buy a home.

Homes close to work opportunities, transport but without  traffic snarls, and near shops, child care, schools,  hospitals, recreation and leisure pursuits are all important considerations.You also need to factor in how close to family you want to be , or don’t want to be.

Most of these criteria will make sense to you for two reasons.

1. They make sense to you now, and they will in the future.
2. They will make sense to home buyers when its time to sell your home and move on.

This will put money in your pocket.

Buying property on ming towns can look rosy now, but with a change to economic fortunes, it can turn sour quickly.

If you are working in a high income mining area, an alternative could be to buy a home to rent out in a Capital city, and build your equity this way.

In five years time you should have two or three investment properties by then, all gaining equity, and if you are still enjoying your work and the prospects look good, you can then buy a home in near the mine.

For Instance, My home is in Ormeau, half way between to Gold Coast and Brisbane, and also half way between Ipswich and the Bay. {gmap|Ormeau, Australia|350|200}That gives me heaps of employment education, recreation and leisure pursuits less than 30 minutes from home. Home prices have never gone down in the ten years I have been here.

About: Rick Adlam: Rick Adlam has been helping clients with home loan finance since 1985 when he was home consultant with AV Jennings. Rick started Equity Home Loans in 1996 to help homeowners become property investors. Rick currently consults in the development of Mr Mortgage for mortgage brokers and HomeMate for new home buyers. Website: http://www.mrmortgage.com.au