Buying a first home is a significant milestone, often not only for the purchasers, but for their families too. We recently sat down with Brady Marcs team member Connie Mastroianni to discuss the ways parents can best support their children as they approach buying their first home purchase, whether that be material support or guidance.
“Whenever I am working with young clients, I take the ‘mother approach’ – I want to find the best opportunities I can, both now and as a long-term investment.”
Educate your kids
Before anything else, parents can help their kids by educating them about money, property, and investment. Starting good habits young certainly helps, but giving them a practical understanding of the value of money invested wisely will go a long way. Best of all, knowledge and understanding from a young age can help avoid costly mistakes down the track.
Bring in professionals
“My first piece of advice to clients is always to bring in the professionals. Whether they be accountants, financial planners, solicitors — and of course, a buyers agent.”
This is even more important when parents become financially involved in the purchase of a property through the structure of a loan, whether it be as guarantors, helping with the deposit, or becoming a co-owner with their children. There are different considerations for each approach, and it is best to use a financial advisor who has a view of both party’s interests and benefits.
For example, a financial advisor can help ensure that both parents and kids are protected if something goes wrong and help plan for the ‘what ifs’ and unforeseen issues. Often this comes down to the structure of a loan, and an experienced, professional perspective can save heartache down the road.
It is really important to paint a clear picture of what future needs will be. To maximise the investment, consider the potential for future flexibility and space. What lifestyle features will be important, including social influences, hobbies, and sport? Where is the location in terms of work, education, and family? Is starting a young family or adding to the family something to factor in?
Finding the perfect property is a balance of many considerations, but you need to know what they are all are before choosing which ones are the highest priority. Good transport options are always helpful, but is there also space for a car?
Circumstances can change when we least expect them. This year has proved the value of considering space for a home office that many people wouldn’t have even imagined a need for just 12 months ago. Approaching a home with that keen eye can make all the difference.
Treat the home as an investment
Whether buying to live in or buying to invest, a home is best regarded as an investment in the long term. Considering the key areas of value to others and future yield or resale value is paramount.
Look for new opportunities
When driven by the First Home Buyers grant threshold, the price range for a first home purchase can often be limiting, especially in a market like Sydney. Thorough research is more critical than ever, and access to off-market opportunities can open up many new possibilities.
“As a buyers agent I love getting to know what is really important to a client, and being able to discuss what is essential vs nice-to-haves. That way we can expand the search and even upgrade what they initially thought they could afford.”
Experience a location first hand
Just as seeing a home in person is essential to know whether it is the right fit, getting a sense of a suburb is equally important. Walk down the main street, visit local shops; walk through the train station, get a sense of distance to other places; visit local parks, and kick the ball around.
Remove the emotion from auctions
Auctions can be extremely stressful, especially when experiencing them for the first time. Parents can support their children by bringing their own experience, or enlisting a buyers agent to bid on their behalf. This removes the emotion from the day, and ensures the best outcome (even if that set outcome is ultimately not winning the auction).
Balancing desires with budget is never more paramount than for First Home Buyers. At Brady Marcs we bring together the key expertise required to find the perfect property: knowledge, research, off-market opportunities, and thinking outside the box.