Christies Beach 
One of the hot topics for some time revolves around 1st home buyers trying to compete in the same space as investors and developers who potentially have much deeper pockets and price the first home buyer out of the market. While this certainly is a consideration in some areas the reality is that both developers and investors are unemotional buyers, they are not buying because they like the garden or the decor they are buying based on a simple mathematical formula centred on their return on investment or in the case of a developer how many dwellings the site will yield. In areas where there is strong demand and supply is short and the zoning regulations allow for the site to be leveraged to accommodate multiple dwellings or possibly even high rise, it is unlikely that a 1st home buyer can compete in this instance.
Typically these properties are sold by public auction and often first home buyers are not equipped to bid on an unconditional cash basis anyway. However all is not lost! First home buyers and indeed any owner/occupier is not looking for how much they can leverage the site to yield multiple flats or what return on investment the property will provide, they are simply looking for a home within their budget that will accommodate their family and provide access to essential services and lifestyle destinations etc. While we have successfully assisted many first home buyers over the years in competing in a hotly contested area it will ultimately come down to what price they can pay. If the home owner can afford to push the price high enough based on the fact they are not needing a return, the investor/developer who does need to achieve a return will simply drop out of the race. However there are often opportunities for home owners to secure a similar property in an adjoining suburb or even street that does not have the same zoning regulations that are conducive to redevelopment. These areas often provide a more affordable option to secure a similar standard of accommodation and still within easy access of shops, cafe’s, schools, transport, beaches and other recreational facilities.
If you would like assistance please call our office and one of our experienced sales staff will be able to help get you get started on the journey of home ownership!
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28/07/2017
Written by Kevin J Barry Professionals Christies Beach.
About the author: Kevin has been selling real estate from Beach Road Christies Beach since 1982. Over this past 35 years Kevin has assisted countless numbers of families with their real estate needs. Kevin is a Director of The Professionals National Board and is currently Chairman of The South Australian Board and Managing Director of Professionals Christies Beach. Please feel free to contact Kevin for any real estate based enquiries in residential or commercial property.
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