Finding the confidence to purchase
No matter what the market’s doing, purchasing a property is a big decision that’s part financial and part emotional.
And it’s a decision that requires confidence – confidence that this is the right property for you, confidence in your finances, and confidence the property will serve your needs now and into the foreseeable future.
So how do you find that peace of mind, and know this is the right decision for you? Here’s a quick guide to finding the confidence to purchase a property at a time that’s right for you.
Know your finances
The first step in any property journey is to know your finances and gain clarity on your budget.
That’s why it pays to talk to a lending institution early in the property journey. Your prospective lender will review your finances and tell you what they believe you can afford to borrow.
But on top of that it’s important you do your own due diligence, factoring in what might happen if your life circumstances change such as your employment, or financial position.
Although banks and the lending regulator, APRA, have buffers in place that factor in potential rate rises, it’s also prudent to consider how they might impact you and your financial situation.
The past couple of years have seen interest rates at an all-time low, but as we know, they’re beginning to rise, and might do so again in the future.
Consider this as you plan for any property purchase, and if in doubt, lower your budget to ensure the repayments on a property can be comfortably made, even if interest rates rise.
Know your needs
What you need from a property will change at different stages of the life journey. If you’re a first-time buyer trying to get your foot on the property ladder, those needs will be very different to if you have a growing family, or if you’re an empty nester.
Before you start the property search, get crystal clear on exactly what you’re looking for, including the features and benefits the property needs to have, your preferred location, and any nearby amenities that are non-negotiable.
This helps you narrow the property search, and also gives you greater confidence to buy when the right type of property becomes available.
Bear in mind, this list will often be divided into two halves – non-negotiables that the property must offer, and nice-to-haves that you would like but could live without if required.
Know the market
The general property market works in cycles, while individual areas can also rise and fall depending on supply and demand.
That’s why time spent in reconnaissance is never time wasted.
As you embark on the property search, get intimate with the market where you hope to buy. Know what properties are available, what prices they fetch, and how long they spend on the market.
This market insight provides confidence when it comes to locating the property that’s right for you and also making an offer.
As part of this, it also pays to work with an agent you can trust, who offers insight on pricing, seller expectations, comparable properties and a whole lot more.
The final word
As much commentary as there is on the property market, the reality is most people will buy and sell a home only a handful of times in their lifetime.
And for many it can be an experience where finances and emotions both come into play. The better prepared you are and the more knowledge you have, the more confident you will feel, allowing you to make an educated decision at the right time.
Looking to buy or sell?
If you’re considering buying or selling a property, why not chat with one of our friendly agents on 1300 438 439?
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.
