If you’re considering buying a property, chances are you’ve asked yourself, “Is this a good time to buy?” Just as likely, friends and family have volunteered advice on whether now is a good time to buy, or whether you should wait until it is a good time to buy.
But is it ever a good time to buy?
This week interest rates have fallen below the 4 percent mark, with fixed rates starting at 3.99 percent. On top of this, experts put the odds at 95 percent for a Reserve Bank cash rate cut tomorrow.
So, does that mean now is a good time to buy? The only person who can decide if it is ever a good time to buy is you, according to property experts.
“When you’ve got the money, you buy,” says Mary Anne Cronin, a real estate agent with Raine & Horne Bondi Beach in Sydney. “You can second-guess the market all you like, but ultimately it comes down to you. You can wait until Spring when there are more properties, but you may miss that gem that came on the market in Winter and got snapped up by someone else.”
REIA president Peter Bushby shares a similar view. “Every home buyer should weigh their own pros and cons to answer the question ‘is it a good time to buy?’,” he says.
“Ultimately, it is down to what you can afford, where you would like to live and what type of property suits your needs best. You do not buy the whole market, so the characteristics of the property as well as your current financial situation are what need to be considered.”
Bushby sounds a word of caution to buyers encouraged by falling interest rates to jump onto the property ladder. “While taking current interest rates into account, home buyers should remember that interest rates fluctuate in the long-term, causing mortgage repayments to vary – sometimes significantly.”
In summary, if you have a decent-sized deposit and can afford the mortgage repayments, now and in the event of interest rate rises, then it’s a good time to buy. The secret to buying is to be prepared and do your homework. So just as you would shop around for your dream home, spend some time comparing home loans using a site like RateCity.
“Instead of trying to second-guess the market, take a long-term approach to buying your home or investing in property,” Bushby advises.