As property prices continue to rise, buying a property today is becoming unrealistic for many, especially first home buyers who are struggling to save up a large enough deposit.
However, if you have managed to save up a deposit, but are stalling, then the cost of not buying a property today, far outweighs the cost of acting. We are already halfway through September and if your New Year’s Resolution was to buy a property this year then time is running out.
There are plenty of reasons why you might not have bought a property yet. You might simply not know where to start, you haven’t found the right one and waiting for something better to come along or you have simply not acted. Whatever the reason, the longer you wait to buy a property, the harder and more expensive it becomes and you could find yourself priced out of the market if you’re not careful.
It’s important to not let your fears get in your way of making a decision to buy a property. There are of course lots to think about, but if you educate yourself and speak to property experts such as our iBuyNew Property Consultants, you will at least get a much clearer idea of what to do next.
If you don’t buy a property when you have the means to do so then one of the biggest hurdles you will face is rising property prices. Depending on where the property market is currently at, you might face rapidly rising property prices which could mean that the property you could have afforded to buy today, is well beyond your budget tomorrow.
Another factor to consider is time in the market. The longer you want to buy a property, the less time you will have in the market. To generate the best results, property should be held for the long term for at least 10 years or more. Properties typically double in value during this time. Ideally, you should be purchasing a property in your 20s or 30s to see the greatest amount of growth.
Interest rates are currently at an all-time low of 1.50 per cent, making home loans far more affordable and easier to pay down. It’s better to take on a mortgage when interest rates are low; however, keep in mind that interest rates can rise so you should buy a property that sits comfortably within your budget and plan for property price rises. You can also have a fixed interest rate loan if you prefer to know what you are repaying each month.
Buying a property today also allows you to take advantage of capital growth. Brisbane has yet to go through a property boom like Sydney or Melbourne. If you buy at the bottom of the market or in a rising market then you are likely to see good capital growth, especially if you purchase a property off the plan.
Buying a property when you can afford to do so also provides you with added security over your financial future and retirement plans. By the time we retire, we ideally want to own our own home in full and not be renting somewhere.
If you are interested in buying a property as an investment, then you can also take advantage of massive stamp savings, particularly if you are a high income earner. An investment property can save you tens of thousands of dollars every year and there are still plenty of items that can be claimed including depreciation, legal fees, negative gearing, property management fees and more.
If you are a first home buyer then there are government incentives that you can take advantage of such as the First Home Owner Grant. If you are a first home buyer in Brisbane then you could be eligible for the $20,000 First Home Owner Grant. However, if you buy from 1 January 2018, then this grant reduces by $5,000, so it’s in your favour to enter the market now.
As the population in Australia grows, so does the number of people searching for a property to buy. This means there will be more and more people looking to buy a property and more people to go up against, particularly at an auction, making it harder to buy. Off the plan property purchases do give you more opportunity to buy, but you need to act quickly and ensure you are in first to get the best of the bunch.
The longer you wait to buy a property, the more likely your personal circumstances will change. You might have plans to get married or have children, both of which cost money. If you want to buy a property then it’s easier to do so before you do this as life will simply get in the way.
Once you do buy a property, then it becomes easier to expand your property portfolio. In order to retire, we realistically need over a $1 million in assets. If you don’t have enough in your Super or savings, then how else are you going to afford to retire comfortably? Once your first property has grown in value and made good equity, you can use this equity towards an investment property, rather than having to save up another 10 per cent deposit which could take you years.
As you can see there are many great benefits of taking action and purchasing a property today. We understand that one of the major difficulties is knowing where to start and what to buy, and our Property Consultants can help you buy with confidence. At iBuyNew, we take the time to carefully listen to what it is you are looking for and find the property that is tailored to you.
If you have a 10 per cent deposit already saved, but need that push to get started and buy that property before the end of 2017 then iBuyNew is here to help. Our Property Consultants can expertly guide you through the property buying process and advise you on which properties best suit your budget and requirements.
Enquire today or call us on 1300 123 463 to book a complimentary meeting to find out more.