Is now a good time to buy property?
As we continue to navigate this period of COVID 19 restrictions, we are finding more clients asking the same or similar questions – is now a good time to buy property?
So, in answering the question, we ask a number of questions to qualify your situation;
- Have you been actively looking to buy something? Have you found something you wish to purchase?
- Have you saved a decent deposit relative to the purchase range you are in?
- Has your employment situation changed recently– temporarily or permanently? Or is it likely to change somewhat?
- Are you comfortable and ready to negotiate to buy the right property?
Lenders are still showing enthusiasm in taking borrower applications and keeping things moving and many brokers are reporting they are very busy, continuing business as usual.
If we examine the current market place over the last two months, actual auction results are negligible, simply because of social distancing rules and other safety restrictions preventing the standard auction process from taking place. However, many real estate agents are reporting thriving activity in private property inspections and ongoing sales transactions are still evident in most areas. Which is a good indicator that the property market continues to chug along. Essentially, if you are on the hunt, find a property that ticks all or most of your needs and are in a position to buy, then now is as good a time to buy as any!
We need to consider those who are currently looking are generally serious about buying. and those who are currently selling are finding themselves having to sell. This means vendors may be more open to negotiation as there are fewer buyers and competition is not high in many cases. Given this, there is likely to be greater opportunity for buyers to negotiate on price and/or settlement terms.
The RBA will not be making any change to the cash rate any time soon, other than upwards when the economy starts to kick in again, and depending on who you talk to, this could be some time away. So, if you currently have a home loan, you may want to consider fixing or locking in a good interest rate whilst they are available. There are some very attractive rate offers out there, all you need to do is get us to ask on your behalf!
Please enjoy our articles this month … riveting reading for all!
As always, enjoy life, work hard, play safe and remember that we are always here to help you
‘Take the Confusion Out of Lending’
All the best
Peter Vinci - 0438 041 111