Don’t Wait to Buy Property
If you’re set on buying property, it’s best to do so as soon as you possibly can. Property is like any other investment – the longer you wait, the more return you miss out on.
Aside from that fundamental fact, another reason to buy property as soon as possible is that conditions are favourable for homeowners right now. Australia is currently experiencing low interest rates across the board, and competition between lenders is fierce. The resulting loan packages being offered are extremely beneficial for homeowners.
In addition to low interest rates, projected capital growth on investment properties is very high. Some properties are even expected to grow in value by 100% over the next ten years. This is all due to favourable conditions with regard to property prices, population growth and interest rates.
If you’re able to buy property now, it should be strongly considered. It’s impossible to predict how long these conditions can last. Here are just some of the potential consequences homeowners can expect to face by waiting too long:
Rising property prices
Due to rising property prices, you’re likely to pay more for property the longer you wait. As recently as June 2016, property prices surged by 6.8% in Sydney and 3.5% in Melbourne.
Property has experienced a steady increase in value over all of Australia’s major cities – and it isn’t just houses. Apartments, townhouses and other types of property are all subject to economic change and sudden shifts in value.
While the future is impossible to predict, one thing is certain: A sudden rise in property value is far more likely than a sudden dip. Combined with the possibility of interest rates experiencing spikes in the future as well, you could be looking at paying thousands to tens of thousands more simply by waiting too long to buy property.
When you buy an asset such as real estate or a car, the state or territory government will charge a tax called stamp duty. When purchasing a home, you must pay stamp duty within 30 days of settlement, and the amount payable will relate to the property’s value.
This means that, if property prices go up, so too will the stamp duty attached to it. Different states and territories charge different stamp duties.
One thing about stamp duty that’s worth noting is that it increases substantially when a property passes a certain value threshold. If property prices go up, more properties will be over the threshold.
So in addition to missing out on great interest rates and low prices, you may also find yourself paying much more on stamp duty if you wait too long to enter the property market.
At Mortgage House, we’re no strangers to the homeowner’s journey. It’s a long (but rewarding) one.
But don’t worry, we can help with that.
If you’re thinking of buying a home, you can contact us for advice about the best ways to buy a home sooner than you may have expected. Time is of the essence when it comes to buying property, so it pays to speak to the experts.