The Compromises You Should and Should Not Make When Buying Property

No property is ever truly perfect, no matter how hard you look. Even those who build from scratch typically later find aspects they’d change if given the chance.

The key to successful property acquisition isn’t finding perfection – it’s understanding where and how to compromise wisely.

By focusing on what you can and cannot change about a property, you can make decisions that will serve you well for years to come.

Understanding Your Property Purpose

Before deciding where you’re willing to compromise, it’s essential to clearly define your purpose. Are you purchasing:

• A first home that serves as an entry point to the property ladder?
• An upsized family home to accommodate growing needs?
• A downsized property after children have moved out?
• A lifestyle property for holidays or specific life stages?
• An investment property focused on capital growth and rental returns?

For investments particularly, your compromises should never undermine the property’s ability to perform financially. 

Personal preferences matter less here than fundamental market attributes that drive capital growth and rental demand.

Location: Where Compromise Requires Extreme Caution

Location represents the aspect of a property that’s literally set in stone. While you can change almost everything about a building, you cannot change:

• Position within a street: Whether you’re near a train line, on a main road, or tucked away in a quiet cul-de-sac, this is non-negotiable.
• Surrounding development: While broader neighbourhoods evolve, the immediate context – what’s next door, across the street, or backing onto your property – is hard to change.
• Orientation: Unless you’re undertaking a complete redesign, the property’s natural orientation – sunlight, views, airflow – is essentially fixed.

If budget constraints make your ideal suburb unattainable, consider bridesmaid suburbs – those adjacent to premium areas that may offer better value while retaining many desirable characteristics.

Building Type: Understand the Significant Constraints

The fundamental nature of the property, whether it’s a house, townhouse, villa unit, or apartment, are largely fixed in and of themselves – and present significant constraints on what can be changed therein. 

• Houses give you greater autonomy for renovations, extensions and improvements, though the basic structure still sets the parameters.
• Apartments and townhouses, particularly those in larger complexes, limit your ability to modify or upgrade aspects of the property. You’re not just buying four walls, you’re buying into a shared environment.

Pay close attention to:

• Type of development: In a 100-unit building, your influence over long-term decisions and upkeep is minimal. In a small block of three or four, you might help shape the property’s future.
• Owners Corporation (OC) involvement: Active and aligned OCs can enhance a building’s maintenance and value. Conversely, poor management can drag it down. Reviewing OC minutes before buying can reveal red flags, or opportunities to get involved and improve things.
• Position within the development: Your specific apartment’s outlook, proximity to lift wells or bin areas, and general privacy can’t be altered.
• Car parking: Especially in older developments, if a space doesn’t exist, it’s rarely an easy fix. In newer buildings, purchasing an additional spot may be possible, but not guaranteed.

In all cases, these physical and administrative limitations must be weighed carefully. Compromising here can have long-term consequences.

Architectural Style: Some Things Can’t Be Rewritten

Architectural style, whether a property is Victorian, Edwardian, Art Deco, mid-century, or contemporary, isn’t just a matter of taste. It reflects how the home lives, how it fits within its streetscape, and how easily it can be restored or updated.

• Period homes that have been altered badly (e.g., aluminium windows replacing timber, low ceilings installed in high-volume spaces) may lose their character, and restoring it can be costly.
• Conversely, authenticity in style often commands a premium. Buyers and renters alike are drawn to properties that are consistent with their era and neighbourhood.
• Mid-century homes, once niche, are increasingly desirable, particularly those that blend original character with modern function.

So, if style is part of your priority list, think hard before compromising. Reinstating charm and coherence can be rewarding, but it’s rarely cheap or easy. 

And from an investment point of view, a property that feels jarringly out of step with its location may struggle to achieve top-tier returns.

Size and Configuration: Compromise Prudently 

When it comes to size, it’s not just about square meterage, it’s about how space is used and whether it can be adapted.

• Balanced floor plans matter. A five-bedroom house with only one cramped living space can frustrate families and limit resale or rental appeal.
• Potential for reconfiguration is key. Can a large bedroom become a second living area? Is there scope to open up the kitchen? These are valuable forms of compromise if they don’t require major structural work.
• Be cautious around unusual or unbalanced layouts. For example, a freestanding house that’s been reduced to a one-bedroom format may appeal to a very limited market. If it’s reversible, fine, but know the effort and cost involved.

Condition: A Window for Value-Add

Perhaps the most flexible area for compromise is a property’s condition:

• Fully renovated properties offer immediate comfort, but you’ll pay for it upfront.
• Dated but functional homes often represent the sweet spot for investors. Think 20-30 year-old renovations: liveable now, with clear potential for cosmetic upgrades later.
• Original or unrenovated properties provide a canvas, but only if you have the appetite, skill, or budget to take on meaningful work.

Be honest about your renovation capacity. Some buyers underestimate the cost, time, or stress involved. Others thrive on the opportunity to personalise and add value.

And remember, the biggest returns often come when you improve what can be changed, while having secured the things that often can’t – location, orientation, and layout.

Take Home Message

Successful property purchasing isn’t about finding perfection – it’s about making strategic compromises that align with your long-term objectives.

When assessing where to compromise, focus first on securing the unchangeable elements:  location, orientation, building type and fundamental structure. These foundations typically cannot be altered, even with significant budgets or resources.

Reserve your compromises for aspects of condition that can be modified over time – dated kitchens, cosmetic finishes, or landscaping. 

Remember that the property that seems ‘almost perfect’ today might actually offer better long-term value than one that appears flawless but offers little opportunity for improvement.

By understanding where to compromise wisely, you position yourself to make truly rewarding property decisions today, and long term capital growth long into the future.

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