Do you think now is the perfect time to buy a property? Because from my perspective, I’ve been in this industry for over 15 years. People are always waiting for the ideal time in the market to buy property. They’re waiting for the lowest possible point in the property market. They’re waiting for the lowest possible interest rate in the market. They’re waiting for the best possible deal that they can get.
What I find with these types of clients is that they, more often than not, take at least three years to buy property because they’re always looking for the best possible low point in the market, the best possible interest rate, and the maximum deposit that they could possibly save. Now, that sounds like a fantastic prospect to have all of those things aligned for you when buying a property, but it’s not realistic. Let me go back to the deposit concern. So, some people don’t have, and it’s very realistic that most people don’t have a 20% deposit plus the cost of stamp duty and legals, and therefore, they want to go away and save that 20%. Whilst that’s a nice idea, it can take you six months, one year, two years to save that extra amount to come up with the full 20% plus your cost, so imagine the changes that are going to happen in the market during that time.
They’re also looking for the lowest possible interest rate. Yes, every broker wants to get their client the lowest possible interest rate with the best possible and the most suitable lender for their requirements. We will always, brokers will always look after you in that subject matter, so rest assured that if you are using a mortgage broker, they are working for you, not the banks, and they are working with your best interests.
The third thing is timing the market. Is there an ideal time? Well, yes, it would be great if we could all buy when the property market has bottomed out, but realistically, what are you actually looking for? Are you looking for the cheapest property that you can find in a particular suburb? Or are you looking for something that’s going to suit your family needs over the next five and 10 years? Sometimes, buying or waiting for that cheapest opportunity isn’t going to do you any favors. In actual fact, looking at the suburb, the schools, the infrastructure, and the locality to your work and your children’s needs is going to be more important.
All I’m saying right now is don’t try and guess the market. Get into the property market as soon as you possibly can, and with your first opportunity to get into the market, move forward. Make that decision to move forward. Don’t hold back because the market is going to change in six months. It’s also going to change in 12 months, two years, and three years, and look very, very different to how it does today.