The time has come, and wasn’t it a journey? When you gear up to buying your first home, timing is critical to the price you can expect to pay, and the process that follows after you make an offer.
Here’s why now is the time to strike.
It’s a buyers market
Here’s the deal, at the moment, we find ourselves in a ‘buyers market’. So, what does that mean, and how does it stand to benefit you?
Previously, the market went through a ‘seller’s market’, where the vendors held all the cards and pitched house prices higher than we could have predicted. But that reign is over. The buyers market presents an optimal time for home-owners and investors to buy, without having to dish out more than you had hoped to spend for the property of your preference. Competition is still alive and well in the property market, but it only exists between sellers. These sellers are fighting it out in a price war, which only lowers property prices for you, the buyer. Take advantage!
On the downside, the lending criterias are getting stricter, so it is important to get the ball rolling and seek advice and do your research.
Upside despite downturn
It’s hard to sift through the news without seeing the headlines about the house price downturn that is rippling across Australia. If you are a savvy property connoisseur, you may ask if homes are a good investment for the future if these downturns continue. It’s important to remember that while there is a soft downturn, house prices are still over 30% higher than what they were five years ago. Swooping in and buying a home at a softer price will still yield you overall growth.
But shouldn’t I wait for the bubble to burst?
Has waiting for the property bubble to burst left you completely polarised? You are not alone. Making decisions based on the infamous bubble isn’t smart business. Headlines will have you believe that the bubble is imminent, but that’s been the case for too long now. Markets go through different cycles, with so many influences impacting the market. If you stay within your intended property spend, there should be no reason to wait for a burst.
Low interest rate environment
Australia finds itself within a low interest environment. Before you resent your parents too much for snagging those low, low house prices – ask them about their interest rate. Interest rates have got considerably better as the years have rolled on, allowing first time homeowners to enter the market without the same shackles that previous generations have had to endure. If the changes to credit have told us anything, it’s that we should pounce on these low interest rates now before they spike.
Nothing beats buying your first home. It’s one of the most emotional and rewarding rides of your life, and it’s only the beginning. When it comes to property, timing is everything. Don’t be caught on the wrong side of a property price spike, and secure your first home soon.