Owning a home is still one of the great Australian dreams, however with constant media reports of a cooling real estate market and uncertainty over the future of interest rates, it’s understandable why some people would be hesitant about making the leap into the property market.
The decision to buy a home is always a personal one, however the sooner you get into the market, the better off you are likely to be in the long run.
Buying a property is probably the biggest financial decision you will make in your lifetime, but for most people it pays off significantly because even in a cooling market, property prices tend to go up over time.
It doesn’t matter when you enter the market, what matters more is when you exit it. For most homebuyers who hold onto their property for 7-11 years, it’s likely that you will see a significant price increase in that time. Figures from the recent Pain and Gains report from Corelogic revealed that properties that were sold at a loss were owned an average of 5.3 years, while homes making a profit were kept for an average of 9.9 years. Homes that more than doubled in price were owned, on average, for 16.4 years.
The sooner you buy a home, the sooner you can look forward to a better financial position in the future. There are other investments that can also be lucrative, but one of the best things about investing in property is that it can provide a roof over your head while you’re paying it off.
If you’ve been thinking about buying a home then now is an opportune time as interest rates are at a record low, and may still go lower next year, and buying competition is starting to ease compared to what it was a few months ago. So if you’ve had a break from trying to get into the market, it could be worth starting your search again to see if there are any suitable properties available. If you’re a first homebuyer then don’t forget that you might also be able to take advantage of first homeowner concessions to help enter the market.
Those in the Bacchus Marsh area who are already spending money on rent each week may be surprised to learn that it won’t cost that much extra each week to pay off a home loan, and you will be making payments and building equity for your own future, not for somebody else’s.
If you would like to look at properties available to buy in Bacchus Marsh then search on our website.