Knowing when it is the right time to buy a property could make all the difference to making a successful purchase on an investment that could be very beneficial to you. Real estate agents make it their business to know the factors that will contribute to making it a success and what you need to take into account before you take the plunge into buying a property.
An important factor in determining when it is the right time to buy a property depends on the property prices at the time. Often we assume that the right time to buy is when the property market is at its lowest, because when the prices go up again you will be left with a good investment that is worth more than you paid for it. However, often it is difficult to gauge whether the market is at its lowest point unless you have been following it for a while. Talking to your Bunbury Real Estate agent can provide a wealth of information about where the market is at, because we watch the market and keep an eye on what it is doing.
You might imagine that the best time to buy a property is when the interest rates as well as the property prices are low, because this allows you to pay less for your home initially and less off your mortgage repayments. But it is not always the case because often when the interest rates are higher there are often fewer buyers, so it becomes a ‘buyer’s market’. This could work out better for you if you are a buyer as you might be able to talk a seller down to a price that is more pleasing to your needs, due to there being fewer people looking to buy properties during that time. Talk to your consultant at Bunbury Real Estate and use their experience in helping you to make the important decision about which way will work the best for you.
An important factor to consider is your own financial position. If you are not in a position to finance your home you may need to borrow more than 80% of the value of your purchase property, which means you will need to pay for mortgage insurance. You may decide that it is better to wait until you are in a better financial position to avoid paying extra costs.
Are You Ready For the Commitment?
Before taking the plunge into buying a property you need to ask yourself if you are ready for the commitment as it is likely to take you at least 5-10 years to pay off the home. If you cannot see yourself living in the area for more than 5 or 10 years, perhaps it would be advantageous to you to wait until you feel you are ready for the commitment.