Needs VS Wants - A Buyers Guide
According to Adelaide news outlets, house prices grew faster in Adelaide in May than in any other Australian Capital City, bucking a trend that saw national property prices fall for the first time in 20 months. CoreLogic data reports that Adelaide’s Home Value Index increased by 1.8% in May while increases in regional South Australia increased by 1.3% for the month and 6.2% for the quarter, also outpacing interstate rivals.
There is no doubt that our property market remains a sellers’ market, with the increase demand for properties, particularly in coastal and regional areas, like Glenelg while stock levels remain tightly held. As a buyer in a sellers’ market, there must be a strategic element to your purchasing process. It is rare for a buyer in these conditions to simply walk in and have a property that ticks all your boxes while remaining within your allocated budget. Instead, buyers are being urged to differentiate between their needs and wants as part of a solid strategy to great buying in a competitive market.
Determining your needs is a matter of identifying what property attributes must you have to maintain your lifestyle and quality of life. Location is a big factor as this will impact your commute time, your access to schools, sporting teams and other amenities that are most likely already part of your daily routine. The characteristics of the home such as the number of bedrooms or parking allocations, an outdoor space for the kids or fur baby to run and play in safety would all be considered needs when it comes to house shopping so these should go on the ‘must have’ list.
Other items that would be nice to have but can be added later could go onto the list of ‘wants’ but they shouldn’t be deal breakers when it comes to finding your next investment. Air conditioning, solar panels, outdoor patios, freestanding bathtubs and a flowering magnolia tree are all desirable elements, but they shouldn’t necessarily be determining factors on your purchase.
In these market conditions, it is a very careful balance between wanting it all and missing out on properties that have the perfect bones to be added to over time. Certainly, aim to tick as many items as possible off both your needs and wants lists, but also keep in mind how competitive the market is and what you can realistically buy for your money. You may find that prioritising location and structure of the home pays off in the long run, as you are able to stick within your budget and you can personalise the home over time to eventually tick all the boxes, increasing the value for resale concurrently.
So, our guide for buying is get out that pen and paper and start writing up your lists. You will be surprised how much time it saves you as you focus your energies on inspecting homes that have the ‘needs’, while also allowing you to remain open minded and imaginative as to how you can achieve the ‘wants’ in your new home.
