First home, forever home, growing family: What kind of home buyer are you?

As a home buyer, your needs will ultimately determine the type of property you settle on. Whether you’re after a starting home or you’re looking to upgrade to a larger family home for your growing household, your situation will often dictate the property type you end up in.

So, before you start the home-buying process, take a moment to reflect on why you’re on the hunt for a new home.

Understanding the “why” behind your property journey

Understanding your motivation for buying a home is crucial for several key reasons. Firstly, knowing why you want to buy a home can help narrow down your search criteria. For example, if you’re upgrading to a family home, you might focus your search on areas that are close to specific childcare providers or fall within certain school catchment areas. Chances are you’ll also be after a house that can comfortably fit you and your growing family.

Your reason for buying also affects your budget and financial planning. If you're looking for a long-term family home, you might be willing to stretch your budget for the perfect place. On the other hand, if you’re buying as an investment, you’ll be more focused on cost and potential return on investment.

Finally, buying a home is a significant emotional and financial commitment. Knowing your motivation can help you stay focused and make informed decisions while avoiding impulsive purchases driven by market trends or external pressures.

Types of home buyers

Home buyers can generally be categorised into several types based on their motivations, financial situations and long-term goals. Here’s a quick overview of the different types of home buyers.

First home buyers

First-home buyers are generally individuals, couples or young families purchasing their first home. They’re typically looking to establish themselves in the property market, gain stability and stop paying rent. First-home buyers are often eligible for government grants and incentives. Because they’re on the hunt for starter homes, first-home buyers are usually more budget-conscious and may need more guidance throughout the buying process.

Upgraders

This group of home buyers are existing homeowners looking to move to a larger or more desirable property. They’re often driven to buy due to a growing family, a desire for a better location, more space or access to improved amenities.

In some instances, upgraders may need to sell their current home to fund the purchase of a larger property. Alternatively, they may be keen to turn their existing home into an investment property while they look for a new property with more features or in a better location.

Downsizers

Downsizers are typically older homeowners seeking a smaller, more manageable property. They may have older children who have since moved out of home, so they no longer need as much space. They’re often keen to reduce maintenance and living costs while chasing a lifestyle change.

Downsizers are usually on the hunt for low-maintenance properties in lifestyle-focused areas, like near the beach or countryside. Alternatively, they may be looking for a home closer to their adult children so they can spend more time with their grandchildren if their kids have started families of their own.

Investors

Investors are in the market for properties for investment purposes. With this in mind, they’re often after a property that can provide rental income, capital growth and potential tax benefits.

Investors often focus on potential rental yield, property location and market trends. Ultimately, they’re less concerned with personal preferences and more interested in financial returns.

Lifestyle buyers

Lifestyle buyers are looking to purchase a property to improve their quality of life. They’re often driven by a desire for a specific lifestyle, like beachside living, rural retreats or city apartments.

Lifestyle buyers tend to prioritise location and amenities that match their desired lifestyle, so they may not be as focused on financial aspects. They’re often more willing to stretch their budget to secure the lifestyle they’re after.

Relocators

Relocators are individuals or families moving to a new area due to job changes, family reasons or other life events. Depending on their situation, some relocators need to buy quickly and are often unfamiliar with the new area. They’re typically in need of properties that meet their immediate needs.

Holiday home buyers

Holiday home buyers are purchasing a secondary property for vacation use. They’re mainly motivated by a desire for a personal retreat. However, they might also be open to generating potential rental income while the house isn’t in use.

For many holiday home buyers, location is critical. They’re often looking for a home in popular tourist areas and they might also consider potential rental income and maintenance costs.

Renovators

Renovators are on the hunt for properties they can renovate or develop. They’re keen to add value through renovation and personalising a home to generate potential investment returns.

With this in mind, their main focus is on properties with potential for improvement. They’re typically looking for fixer-uppers, but they also need to consider renovation costs and potential returns.

Regardless of what type of home buyer you are, Unloan is here to help you turn your dreams of homeownership into a reality. From competitive variable rates, no Unloan fees* and an annual discount, there’s lots to love about an Unloan home loan. Alternatively, if you’re still trying to learn everything there is to know about home loans and buying a property, check out our collection of articles, tips and clips over at our Learn Hub.  

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This article is intended to provide general information only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice. Please consider seeking independent taxation and financial advice before making any decision based on this information.

Unloan is a division of Commonwealth Bank of Australia.

Applications are subject to credit approval; satisfactory security and you must have a minimum 20% equity in the property. Minimum loan amount $10,000, maximum loan amount $10,000,000.

Unloan offers a 0.01% per annum discount on the Unloan Live-In rate or Unloan Invest rate upon settlement. On each anniversary of your loan’s settlement date (or the day prior to the anniversary of your loan’s settlement date if your loan settled on 29th February and it is a leap year) the margin discount will increase by a further 0.01% per annum up to a maximum discount of 0.30% per annum. Unloan may withdraw this discount at any time. The discount is applied for each loan you have with Unloan.

There are no fees from Unloan. However, there are some mandatory Government costs depending on your state when switching your home loan. For convenience, Unloan adds this amount to the loan balance on settlement.

* Other third-party fees may apply. Government charges may apply. Your other lender may charge an exit fee when refinancing.