Are you considering buying a house but can’t decide if now is the right time? You’re not alone.
Australia’s property markets can be unpredictable, leaving many potential buyers wondering if they should make their move.
This blog aims to clarify some key considerations to help you make an informed decision.
No best or worst time
Firstly, let’s address a common misconception: there’s no universal ‘best’ or ‘worst’ time to buy property. Rather, the answer to “Should I buy a house now or wait?” in Australia should be based on your personal circumstances and financial ability.
Your job security, savings, debt level and future plans are critical factors that should guide your choice. If these elements aren’t aligned, now may not be the right time for you to buy, regardless of what the property market is doing.
What do the forecasts say?
Nevertheless, it’s important to consider market trends when you’re planning a purchase.
Right now, many economists are predicting that national property prices will continue to rise into next year.
For instance, Domain expects Sydney house prices to grow by as much as 9% within the 2023-24 financial year. If this comes to pass, this would take the median value to a new record high of $1.66 million.
Similarly, Westpac, NAB and PropTrack have all recently lifted their outlooks for the market, as population pressures, a lack of supply and the tight rental market continue to drive property prices upwards.
So what does this mean for you as a prospective buyer?
If you are financially ready
If you have a stable income, minimal debt and have saved a decent-sized deposit, buying sooner rather than later could be a smart move. That’s because, given the expected rise in property prices, waiting might mean you’ll end up paying more for the same house. So, in that sense, buying now could save you money.
However, keep in mind that while forecasts are based on careful analysis, they’re not an iron-clad guarantee.
If you’re not financially ready
If you have high levels of debt, a low credit score or face job insecurity, waiting might be more prudent, even if it means paying a bit more later. That’s because the potential risks of buying a home may outweigh the benefits of entering the market now.
Other financial considerations
If you decide to buy, make sure you’re aware of all the costs involved, not just the purchase price. Stamp duty, legal fees, inspection costs and other expenses related to buying property can stack up – so you‘ll need to factor them into your budget.
Consult the experts
Before making any big life decisions, such as purchasing property, it’s always wise to consult professionals. An experienced mortgage broker, like Shore Financial, can help make sure you’re financially prepared to take on a mortgage.
Mortgage brokers can offer valuable insights into market trends and help you assess your readiness to take on a mortgage.
They will then compare different home loan options to find a deal that suits your unique needs and circumstances. By handling all the leg work and answering all your questions, they can take all the stress and hassle out of the home loan application process.
The final takeaway
In the end, the question “Should I buy a house now or wait?” in Australia, has no one definitive answer.
Ultimately, the choice is yours and should be based on your unique financial and personal circumstances.
While market trends can provide some guidance, they should not dictate your decision. Property is a long-term commitment and you need to be sure you’re making the right choice for your future.
Make use of professionals, such as mortgage brokers, to help you make an informed decision, and, most importantly, make sure you’re financially prepared.