What sort of buyer are you?
Whether it’s a first home, forever home, or a lock and leave residence to enjoy in retirement, every property buyer has an outcome in mind as they search for a home.
It begs the question, what sort of buyer are you and what property features should you be on the lookout for?
First home buyer
If you’re a first home buyer, the ultimate aim is to get into the market.
In most instances, you probably have a limited budget and this will be a property that acts as a stepping stone that allows you to get a foot in the real estate market door and build equity.
Due to that limited budget, first home buyers often have to make some concessions, which might take the form of:
- Purchasing a unit or townhouse, rather than a freehold residence
- Buying in a bridesmaid suburb or a little further afield
- Purchasing a property that can be improved or updated
Upsizer
Upsizer property purchases are usually prompted by significant life events, like settling down with a partner or starting a family.
These buyers tend to have equity in a previous property or a significant deposit, which they use to purchase a property akin to their forever home.
In this instance, specific features will matter, whether it’s the number of bedrooms, size of the backyard, suburb, proximity to schools, entertaining areas, or additions like swimming pools.
Upsizers might also be willing to purchase a property that can be improved or added to with renovations, extensions and additions.
Downsizer
Like upsizing, downsizing is often instigated by life events, such as children leaving home, retirement, health issues, or just an urge for a lower maintenance lifestyle.
Downsizing buyers often have significant capital from their previous properties, and might seek to transfer that into a smaller, low-maintenance, yet high quality property in the location of their choosing.
In fact, location is often a priority for the downsizer, whether it’s purchasing a property close to extended family, in a seachange or treechange location, positioning themselves near amenities, such as shop and medical facilities, or buying in the suburb they’ve always dreamed of.
Investor
For investors the purpose of purchasing a property isn’t about the heart, it’s all about the head and the hip-pocket.
Their aim is to find a property that will generate ongoing income while also increasing in value over time.
Ideally this investment property will:
- Be easy to maintain
- Appeal to the right type of rental occupier
- Be located close to suitable amenities
- Be positioned in an area primed for capital growth
Rentvestor
Like investors, rentvestors are purchasing a property that they will rent out for strategic reasons.Â
In this case, the owner is also often a renter themselves – they own a property in an area they can afford, but rent in the place they want, or need, to live in.
For people looking to get into the property market, rentvesting offers an affordable alternative, particularly to big cities where median property prices can be high.
As for what they’re seeking in a property, it’s similar to general investors.
Not just about labels
Working out what type of buyer you are isn’t just about bundling you neatly into a box or assigning a label.
Instead, deciphering the reasons behind your purchase helps determine what exactly you’re looking for in the property you intend to purchase.
It also helps you work with an agent to find the right residence to suit your needs.
How we can help
If you’re considering buying or selling a property and seeking to understand the current market conditions, why not chat with one of our friendly agents to understand how we can help?
Or feel free to enter your address below to get your instant property estimate.
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We’re not just about property, but the people and the stories behind it. You can also view our list of currently available properties here.
