THE BEST TIME TO BUY PROPERTY
There is so much conflicting information in the media about the property market. In fact, a lot of the time it becomes fairly difficult to work out if it’s actually a good time to buy property and take on debt. Between talk of the property boom in some capital cities slowing down and signs of certain regional areas ailing in the aftermath of the mining boom, it’s difficult to predict where property is heading even if you do pay attention to the real estate market.
But fortunately, determining when it’s the right time to buy is quite simple.
It’s all about you
There are two reasons most of us buy property – to live in or to invest. All of us want to take comfort in the expectation that our property, over time, will be worth more than what we paid for it. Your reason to buy should be a major factor in determining the right to time to buy.
Even though real estate has become seemingly unaffordable, particularly in the larger cities such as Sydney and Melbourne, the truth is there has been very few times in our recent history where we have ever said house prices are too cheap or affordable.
While property prices may spike suddenly or fluctuate in the short term, history shows that prices over time tend to go in one direction – up. As Warren Buffet, one of the most successful investors of all time, once said: “I can’t tell you where the markets will be tomorrow, but I can tell you where it will be in 20 years time”.
While 20 years may sound like a long time, it is this type of timeframe you must consider when purchasing property if you want to see a healthy return, unless you have big plans to improve the property’s resale value. It’s not so much about timing the market as it is time in the market.
Real estate will always ebb and flow, and the right time to buy is simply when you are financially prepared to do it.
When are you ready to buy property?
For most of us, buying a home will require the real commitment of getting a loan from a bank. So buying a property is often dictated by your preparedness to take on debt. When it comes to getting a home loan in Australia, you need a few things set in place:
- A steady job, with proof of regular income to show the bank you can service the loan
- A big enough deposit, usually 20 per cent of a property’s price
But remember, research is essential.
This process takes careful planning and calculating what you can afford. Going through a home loan can be difficult, and that’s where Chifley can help everyday Australians. We have 25 years’ experience in helping people understand their money, and how it can be put to good use.
Chifley Home Loans can help you determine your borrowing capacity, the type of loan best suited to your needs, and we find the right lender for you. It’s a straightforward way of working out if you are ready to commit to a home loan and buy real estate in Australia – no matter what the news says.