The time has arrived where it seems it is time for homebuyers to invest in their first home. At the moment, it is a buyers market which makes it the best time to strike.
So you are in the buyers market, but what does it mean and how can it benefit you?
The market previously went through the seller’s market, which was where the vendors were holding all the cards, and the prices of homes were higher than ever. That war is now over. The buyers market is here which presents you with a great time to buy and invest without worrying about paying more than you wanted to spend. The competition, however, is still alive within the market. Still, it seems to only be existing between the sellers. Sellers are in a fight with prices due to the effects of coronavirus. This means the property prices are lowering, which is a great advantage for first home buyers. The downside to this is the fact that the lending criteria is more strict. It is vital that you seek advice and make sure you do your research.
It can be hard to go through the news without seeing that housing prices are significantly lowered right across Australia. If you are a property connoisseur, then you may ask if it is a good investment if the downturn continues on. It is important to remember that the prices of homes are still 35 per cent higher than that of five years ago. Grabbing a home at a lesser price will still give you overall growth. Property investment strategies involve buying a property at a low price and then renting or selling it for a higher value.
People ask, should they wait for the bubble to burst?
You need to ask yourself if waiting for the property bubble to burst has left you somewhat polarised. Don’t worry; you are not alone here. Making the right decisions based on an infamous property bubble is not smart business. Headlines will make you believe that the bubble is looming over the horizon. This has been the case for far too long. The markets will end up going through different cycles with different influences that are impacting the market. If you are staying within the desired property endeavours, spend. There is no need to wait for the property bubble to burst.
Low-interest rate environment
Australia is finding itself sitting within a low-interest rate. Interest rates have gone much lower recently as the years have passed on. Therefore, homeowners are able to enter the buying market without going through the same trouble as the previous generation did. If the changes to credit have told us anything, it is that we need to grab loans now while the rates are low and hurry before they spike up again.
Buying your first home or first investment property is rewarding but is also an emotional rollercoaster sometimes too. Timing is everything when it comes to buying a home. Don’t get caught on the wrong side of the property market when it comes to securing a home. If you are unsure of when the right time to strike is, seek the advice from a professional mortgage broker who can help you find the best deal and will know when the best time to strike is. Getting it wrong can see you in more trouble than it is worth. Property management services are recommended if you are going to be renting out your new property.