It’s hard to believe that $900,000 doesn’t buy much!

It’s hard to believe that $900,000 doesn’t buy much!

Juliet was buying in a very desirable part of Sydney in a hot market and even though she had a healthy budget, it wasn’t quite enough to get her what she wanted.  It’s tough when your budget is borderline, as so many properties look tantalisingly within your reach but someone with deeper pockets can very easily make them unaffordable.  It can be heartbreaking to keep turning up to auction after having spent money on building inspections and conveyancing to keep missing out by only a small amount of money.

The options open to you are to change location or accept a property with sufficient compromises. But you need to be aware that the second option can affect long term capital growth.  When buying an investment you can be less fussy with regards to location but when you are buying a place to call home, the suburb choice becomes so much more important.

From an investment point of view, the focus is usually very much on future capital growth.  

Owner occupiers pay less attention to this – but I personally believe they should consider this aspect more than they often do.  You see, by making location the number one criteria, the property’s attributes become the things that have to give.  But a property in a great location with loads of negative features will most likely grow in value at a slower rate than a better property in a lesser location.

Some of the compromises that owner occupiers