When is the right time to buy?
People often think that the right time to buy property is when the market is at its lowest or when interest rates are low. Whilst this is true, a downward moving property market shouldn’t put your plans on hold. You should always remember that buying a property is usually a longer term investment compared to say other investments such as shares or managed funds, so in the long run you are usually better off.
There are many different reasons that people buy a property. You could be buying your first home, looking at moving houses, or buying an investment property. No matter the reasoning, all buyers still go through a consideration process to determine the right time for them to purchase.
Dependent on your scenario there are a few things you should consider:
• Can I afford it? It is really important to make sure that you have enough income to be able to purchase a property. A lender can work this out for you, and advise you on the amount that you are able to borrow based on your current commitments.
• How much can I borrow? You should look into how much you are able to borrow and under what provisions, so that you are prepared when going into the market. You can use our mortgage repayments calculator to determine how much your repayments will be based on how much you are able to borrow.
• What are my goals in the short and long term? You need to consider how long you plan to own the type of property you are purchasing. Purchasing a property is generally a long-term decision, so it is important to make sure that if you plan on selling within a short period, that you choose a property and area where you are likely to get your money back if you decide to sell in a few years.
The process of purchasing a property will result in endless open houses, internet searches and inspections. It is important before you start engaging in these activities, that you understand what you are looking for and what sort of budget you are working with before you start looking around! Start talking to lenders, and real estate agents to work out what you can do and what is on offer so that you are prepared!
By Marie Mortimer. You can follow Marie on Google+
Image credit: Marco Bellucci