When Should I Buy a Property?
Buying property is an important part of improving your financial status and increasing your future security. However, finding the right time to buy a property can be challenging. Not only do you need to make sure you can afford to purchase a property, but you also need to make sure the market is right. You don’t want to buy a home if you don’t have a large enough deposit and can’t afford to make repayments. You also don’t want to buy a home in a volatile market or at a time when housing prices are about to drop.
Signs to Look for in the Property Market
Experts recommend buying a property when the market cycle has reached its bottom. At this point, prices are low, demand is low, but supply is high. Some signs to look for if you’re trying to predict when the market is going to be at its lowest are:
- Are property prices trending downwards for a period of time?
- Are houses sitting on the market for long periods of time?
- Are fewer homes being built? This is a daily good indicator that housing is in low demand.
Not only do you want to make sure you buy a home when prices are low, but you also want to make sure you are in a secure financial situation so you can afford your loan repayments. If you think you are going to purchase a home soon, you will want to make sure you start budgeting. Budgeting allows you to reduce your monthly expenses and increase your savings. These are both factors lenders take into account when assessing your home loan application.
If you are ready to buy a property, contact the brokers at Mortgage House. We will work with you to improve your home loan application, allowing you to secure a home loan with competitive interest rates.