With the market running so hot, is now a good time to buy a property? In NSW, we are experiencing record auction clearance rates, very strong demand and little supply. So is it too late?
The first point we make to clients is that it depends on their situation and what they want to do – this may sound cliche but it is true. Getting the timing right on the market is important – but it is not everything.
If you are paying drastic amounts in rent and your mortgage repayments on your home would be cheaper than your rent, then it could be a good a viable option because even if the market goes flat over the next few years you will have some cash flow savings.
If you are looking longer term for your super – then once again now might not be a bad time to buy. By putting down a 20% deposit and fixing your rates, the rent can exceed your interest payments and property costs.
On the other side of the coin, if you are a first home buyer and you are using every penny to get into your dream home then it might be too risky to buy now – if any movement in interest rates will make you uncomfortable then you should re-consider buying and continue saving to reduce the risk.
Once you have decided you are in a position to buy a property – then it is about sticking to some basic fundamentals. Do you research on the price – is it comparable to other sales? Make sure you get your building and pest reports completed so you don’t run into any problems immediately.
As with any investing you need time – time to get in, time to let your investment grow and time to get out.