Is now prime time for you to buy?
Updated: Oct 3, 2022
Is now prime time for you to buy?We’ve all heard the news. Interest rates are on the rise and are expected to continue at this rate until mid-next year. But don’t let this scare you away completely. It seems many buyers are holding off purchasing as a precautionary method to wait and see what will happen in the market. This is a testament to recent auction rates, which have seen a steady drop over the past few months.
However, does this present itself as an opportunity for buyers? Could now potentially be prime time for you to look to buy your first home or investment? We’ve come up with a few points for you to consider why now may be as good a time as any, to think about buying.
1. Your offer may be taken more seriously
If you were trying to make offers previously only to find the property had been sold, then now could be your time. With fewer people looking, and fewer people making offers, your offer is likely to be looked at a little more closely. Broadly speaking, it may well be that those buyers in the market with genuine intent could benefit from the reduced competition.
2. Equity, equity, equity!
If you’re currently an owner but are looking to either buy a new home or want to purchase an investment property, you have the ability to use the equity in your current home to support your next purchase. Homeowners are able to capitalise on recent property value increases and tap into their equity rather than use savings for a deposit.
It’s an advantage many homeowners aren’t aware of; here is how it works: https://www.astute.online/post/equity-in-your-home-how-to-use-it
3. Talk to a trusted broker for clarity
At the end of the day, interest rates for some time have been set at critical emergency levels, and as expected, they are getting back to pre-pandemic conditions. Interest rates are not always where the whole value is. Structure, lender fees, Mortgage insurance, and interest rate, are just a few of the areas that need to be considered. At Astute East Brisbane, we focus on the complete cost of the transaction. We work towards a holistic outcome that seeks to ensure a cost-effective solution that will assist in maximising your longer-term opportunities.
4. Look off the market
There may be more opportunities to buy off the market. With many sellers holding back to see what the market will do, it’s possible that they’ve had preliminary conversations with real estate agents and prefer to sell without an official listing instead. It’s very possible that there are more people wanting to sell than are being listed for sale due to the slow down in market activity. Let's be honest, no one likes uncertainty; some sellers are only interested in listing their property when they know.
5. The wait may hold you back further
The longer you hold off, the longer time you're spent pushing out your mortgage and your ultimate end goal of becoming a homeowner. Rents are continuing to increase, so the sooner you can be paying your own mortgage, or receiving the rent as an investor, the better off you could be. Always talk to a trusted broker like the team at Astute East Brisbane so we can help you understand all the possibilities.
At the end of the day, it all comes down to preparation and who you have on your side to guide you through the process. Buying a home, whether your first or third, is always a big decision that should not be considered lightly. The team at Astute East Brisbane understand this. We aim to support you in finding the right home loan; rest assured, we will only ever recommend what we believe will suit your specific circumstances. If you’re interested, please reach out to our team so we can assist you from the early stages of your journey.
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