Is there a right time to buy a property?
For many of us purchasing a property is on life’s big to-do list. It’s a box we’re hoping to tick in the interests of financial security and personal wellbeing.
But it begs the question, is there a right time to buy? In a property market which can shift and change over the years, often due to forces outside our control, is there an ideal time to purchase and how can we make attaining that goal a little easier?
Getting a foot on the ladder
A lot of column space is devoted to the importance of purchasing your first home and taking that first critical step on the property ladder.
And yes, it’s true, getting into the property market as early as possible can have financial advantages, particularly in a country where median house prices have traditionally kept increasing.
In fact, Aussie Home Loans data indicates the Australian property market has undergone five distinct growth cycles over the past 25 years, with national median house values now 412 per cent higher than they were a quarter of a century ago.
This means for many people, property has been a successful way to increase their net worth. But it’s also no secret those increases have also come at the expense of affordability for those seeking to enter the market for the first time.
That said, if you’re keen to embrace the great Australian dream, is there a right time?
When you have stable income
Unless you have the funds outright, stable income is the first prerequisite to purchasing a property at any stage of life.
Almost all lenders require proof that you are in a job with sufficient and regular pay that allows you to service a mortgage.
Often you also need to have been in this job for a while, and have a history of saving, before you can even consider purchasing a property.
When life circumstances change
Often, it’s a life change that provides the catalyst for purchasing, making that transition the ‘right’ time to buy. It might be starting a full-time job, entering a long-term relationship, starting a family, expanding your family, relocating, or downsizing.
These are some of the most common reasons for purchasing a property, and are also the life events that prompt people to sell their previous home.
When the time is right for you
The above might be the catalyst for purchasing but the biggest trigger is when the time feels right for you personally.
It’s when you’re ready financially and emotionally, and that can be a very personal thing.
Predicting the market
A lot of media attention is devoted to ‘predicting the property market’. But the reality is, even for the experts it’s almost impossible to do.
That means there is no ‘right time’ that you can anticipate and then use in a bid to achieve maximum financial gain.
Instead, you can put yourself in a position to purchase at a time that suits you, your financial position and circumstances.
In the process, it pays to remember that while the market goes through peaks and troughs, traditionally the Australian property sector increases in value.
How we can help
If you’re considering buying or selling a property and seeking to understand the current market conditions, why not chat with one of our friendly agents to understand how we can help?
Or feel free to enter your address below to get your instant property estimate.
We’re not just about property, but the people and the stories behind it. You can also view our list of currently available properties here.
