5 Tips for Deciding Where to Live: Suburban or City? House vs. Apartment?

  • Posted 28 Nov

5 Tips for Deciding Where to Live: Suburban or City? House vs. Apartment?

As a first time home buyer, you’re going to have a range of decisions to make – what’s the best way to finance my new home? Best mortgage rate? How do I work out what Lenders Mortgage Insurance amount I need to pay?

Often times, the most important decision to make initially is the actual location and type of home that will work best for you.

Let’s unpack the decision process to make things easier. Here are five things to think about to help you get started in your home buying process:


1. Think about what you can afford when you’re thinking about house vs. apartment


First ask yourself, what can we afford? Buying a home is going to be the biggest investment of your life. Do you really need to buy, or is renting the best option for you?

Of course, when you buy, you are building equity, and you own your property eventually. Renting, however, can be an equally viable option, depending on your needs.

Do you have the down payment required for a home? If not, you may have to stick with renting for a little while longer. If you do have some savings though, you could be eligible for the First Home Buyers grant. Talk to our home loan experts for more information.


2. Space


Ok, so let’s assume you have the financial freedom and savings to be a home owner. Now you need to ask yourself, how much space do I really need?

If you have a family of four, that modern apartment is going to feel like a prison cell pretty quickly.

In today’s world of home finance, people are scaling back in terms of size. There’s a lot you can do with small spaces and going smaller can also be less of a burden on your pocketbook. But you need to be realistic about your options and how much your family really needs to live.

Sometimes, a bigger home is your better option. Compare spaces – look at both apartment living and a stand-alone home and make your decision based on facts and family requirements.


3. City vs. Suburb


In the last 15 years, there’s been a growing migration back to the city centre for dwellings. The benefits of living in the city are many. The City offers rich cultural options and can be an extremely exciting place too live.

There is going to be a sacrifice in terms of space however, and if that’s important to you, life in the city may not be your best option. This really comes down to what your personal preferences are. You’ll need to factor in the cost to travel into the city if you choose to live in the suburbs; if you’re job is city based.


4. Cost of commute


Your time is valuable. If you live in the suburbs, you’ll have a long commute. Calculate how much you make per hour, and figure out your commute time at that hourly rate. Now add things like tolls, car maintenance, and multiply that by the amount of time you think you’ll be living in the suburbs.

You need to factor in quality of living as well. Sometimes the commute is worth it to give your family the benefit of being able to play in the street safely in the early evening.


5. Type of commute


If you do decide that the commute is worth it in terms of time and money, then think about the mode of your commute. If you can read on the train or ferry, that has a cost-benefit to it.

Developing road rage in your car for two hours a day is something that can ultimately be detrimental to your health.

If you answer these questions, you’ll be better along in deciding where to live and what type of home finance you can access. In the end, living near your place of work can play a huge factor in your decision.

In terms of the type of home you’re looking for, think about keeping things simple. Is there really a need for that 12-bedroom mansion?


Our team of home loan experts can help you with your entire home buying questions. Get in touch with our team today and get the information you need now.

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