There are a number of reasons why now is the time to buy property, and you’ll see some of these reasons listed below. If you’re considering investing or buying property, you should know that the market is quite healthy at the moment and there is also a good range of properties on offer, which is always better for the buyers, as opposed to properties being scarce.
Low Interest Rates
While interest rates have been lower than they are at present, there are still some very good deals to be found from the banks and other lending institutions. In addition, the range of home loan products on offer has rarely been more flexible and accommodating than it seems to be at present. These days, you can select the option to fix all, some, or only part of your loan, and you can even decide to offset only a portion of your savings if that is what suits your financial strategy the best. Being able to get the right finance deal can make a big difference to when you buy your property.
Plenty on Offer
Unlike leaner periods in the past, when there was not a lot of stock to choose from when it came to buying property, recent building programs have lately begun to bear fruit. This means that there is more property in the market to be sold than there was a few years ago, and this gives you as a buyer a little more negotiating power when it comes to purchasing your property.
A few years ago, real estate investors had dropped out of the buying game almost entirely. This was mainly due to the difficulties associated with getting finance. However, since the Global Financial Crisis of 2008 has well and truly passed, most financial institutions have normalised their lending policies, making it easier for investors to access funds. This means that investors are just starting to come back into buying properties. But before they inundate the market as they did in the pre-GFC days, you may be able to make your move and get in ahead of the hordes. Once there are too many investors in the market, real estate prices tend to sky rocket, driven by demand, and then smaller property buyers find it harder to get a good deal on the table.
With a returning property market gaining strength and lower than usual interest rates, now is a good time to buy property. If you’re considering entering the real estate market for the first time, be aware that these conditions can change rapidly and probably will change fairly soon. While real estate does not move as fast as the share or foreign exchange floors, wherever you have large amounts of money changing hands, you will have market movements.
Though now is undoubtedly a great time to purchase a property, it isn’t always easy to know which property to actually buy. Unless you’re an expert, it would be a wise decision to seek professional advice from property specialists, such as Templeton Property, if you’re planning to take advantage of the current state of the property market.
What do you think of the current state of the property market in Australia? Share your insights in the comments below.