[greenthumbs]

OK, so everyone says location location location when buying. But how much does this matter?

We are looking to buy our first home and having trouble with the decision of where to look. There is the two of us, plus toddler DS (and plans for one or two more in the next few years). I'm a gardener and DS loves being outside too. We are both in positions that we love, with little chance of earning much more other than normal inflation/award pay rises. I do only work 3 days which will probably change as children get to school age (though obviously a long time away).

We are currently renting in a lovely area which we really like. But if we were to try and buy in this vicinity we would only be able to afford a small home on a very small block. We would need to spend almost to the top of our borrowing capacity and therefore would have no money left in the near future for alterations/add ons etc. The main thing I like about the area is that we would be close to the freeway and town centre.

If we were to travel 5-15 mins north, we would likely be able to afford a much nicer bigger home on a larger block. We could likely spend 40-50k less for a similar property, or go higher up in our borrowing capacity and get something with 4 or even 5 bed, 2 bath, larger all round, but don't really know the area, further from town centre (10-15mins depending on traffic) and really only 1 main arterial road in and out which is what would cause traffic. These two areas are surrounding the same town centre, we'd just be 5-10 mins on the opposite side of town.

It just seems silly to go with spending so much more for a similar feeling area close to the the freeway for only a 10minute travel difference. But having been used to being so close the town centre for so many years I wonder how much it would annoy us. DP doesn't seem worried either way. We are essentially home bodies, but see DP's family a lot and this would make us that bit further away - they are currently a 25min drive, then they would be 35-40mins away. I need to get to the freeway for work, but DP goes to train station so does affect him as much.

The closer one is considered a better area, hence prices. The other is considered a lower socio economic area (well the whole area is considered this, it's western sydney ), but when looking at places we go on the feel of that particular street/area and house.

Once we're home it wouldn't bother us where we are, it's just the travel that's concerning me. I know it's only 10mins, but.... it's having that one main arterial road.... and just not knowing the area as well.

Any advice? Anyone faced similar decision?

[CupOfCoffee]

We are facing the same problem. We are looking to buy our first home and if we stay where we are renting we will have to get a dodgy little home that needs work (and neither of us have skill in that area).

But if I move to a different area, further out and in worse suburb, I can get a massive renovated Queenslander (we are in Queensland) for well under our budget.

My preference is to move into a lovely house, I am not looking for an investment, I am looking for somewhere to live. Everyone is telling me that location matters and I should look to buy in the suburb I live in. So I am in the exact same position, without an answer.

[Stellajoy]

I would spend more and buy small house in the area you like close to transport.

10 extra mins commute is 20 minutes a day, so an hour a week extra for you and 1 hr 40 for your DH.

So 2hrs a week, over a year is 104 hrs which is like 13 working days you and your DH will spend extra commuting.

That's just me though.

[jobo77]

I would look at school zoning too- you might find that the cheaper area also has a big difference in the public school offered. We are in north western Sydney and could get a bigger house if we were to go probably 15 mins over a main road but we would never do it due to the difference in schools and neighbourhood. I grew up out here but I am still a snob

[zaacaa]

We bought our first home in an area that we didn't love, because we could afford it, it was still close to the city, and we then had money to renovate and improve the home. We then sold it 2 yrs later as the area had started to really go up in price and we'd finished the renos ad we made a great profit, which then allowed us to buy where we wanted to. Sure the first area wasn't as lovely, but it served its purpose to get us elsewhere in a few years. We also had a lovely street and neighbouring houses which helped the decision. Slightly different scenario to yours, but for us it was about a longer term goal whilst still being able to buy immediately. We have no regrets and at least now never have to live in an area we don't love ever again!

[wannabe30]

For me, once I'm in the car, the difference between 5 min travel and 15 min travel is irrelevant. If you we're used to walking to the town centre, then the change to having to drive to the town centre would be very noticeable, however 10 min extra drive is no different, especially if you like the other area just as much.

This post has been edited by wannabe30: 27/01/2013, 07:19 AM

[duck-o-lah]

That sort of time difference in travelling would mean absolutely nothing to me it wouldn't even factor into my decision.

I would spend as much time as you could in the new area and try and get a feel for it. Great suggestion by PP to check out the local schools.

Personally I would do everything in my power to avoid borrowing at the top end of my borrowing capacity. Financial stress is a horrible, horrible thing. Make sure you would still have enough money to get by if one of you had a loss of income, even if only temporary.

[I'm Batman]

10 mins? Seriously?

Phhhhtt Where I live the average commute is 1.5 hours plus. Its half an hour to the nearest coles.

If you are in a car I say meh

[Pearson]

Our first home - we bought small in our area we liked. 2 years later, we bought a new house a little further out, bigger, on a good size piece of land, 10 mins away. We then had trouble selling our first place.

The cost alone of selling etc is ridiculous. My advice - buy a little further out.

Ps - we were "poo poo'd" for buying our house where we bought it, but, we have bought below our max borrowing power, and the houses we could have afforded all got flooded in 2011. It too is in a lower socio economic area.

[axiomae]

I moved from inner city Brisbane to Ipswich (a 30min drive away and whole other town that people in Brisbane snob their noses at, despite it being quite lovely) in order to afford a house that I could comfortably live in.

People said DP and I were crazy, however we have made so much capital growth due to increases in the area and have actually come to love our new town, without topping out our borrowing capacity. This has made a massive difference considering my maternity leave and the cost of having a family these days. Don't push your borrowing capacity and be stuck with a house you can't afford should there be a change in your circumstances (illness, redundancy etc) would be my advice.