I know this one sounds a bit obvious but bear with me.
In my time over the last two years working with first home buyers I have seen a wide variety of clients with a very wide range of budgets, but something that most first home buyers have in common is they seem to think that the first house they build needs to be their “dream home” – or at least close to it. While it is important to build a good quality of home, the reality is that most people only live in a home for 5 years on average, so it is important to get the balance right.
If you over capitalise when you build your first home, you end up decreasing the potential increase in value of your home. Inversely, if you build a house that is too small or low quality in finish, you will run into the issue of low resale or rental value. Some of the main things that I have people ask me for in first homes which I would consider to be “overspending” include
- Porcelain Tiles
- Excessively large walk in wardrobes and/or pantries
- 40mm stone benches (as opposed to 20mm standard)
- Ducted air conditioning
In the right situation, all of the above mentioned things can be great additions to your home. Whenever you are considering going above a standard inclusion, it is important to consider whether the money is really worth spending.
The same goes with land. A lot of people want to live “close to the city”, but the reality is – for your first home, you want something that will increase in value quickly. Look for land on the fringe of a “booming” area as it is likely the next area to boom.