Is now the right time to buy and investment property? 5 factors to consider in the real estate market
Is it a good time to buy real estate at the moment? When is the perfect time to purchase a property?
This is one of the common questions I often get from my clients. As a Sunshine Coast Buyers Agent, my answer is always this: There’s never a ‘best time’ to buy a property.
Hear me out here.
I’ve seen so many property investors try to guess the “right time” to invest and worry about buying at the ‘wrong time’ in the property cycle. I get it! Purchasing a property is a huge investment of time, effort, and money, so I understand why buyers are careful when making such a big decision.
Nevertheless, there are always lots of great opportunities that await if you’re planning to buy a property today, because in the end, it’s not about when, but how.
Let’s discuss why now might be a good time to enter the property market.
The current Australian property market situation
According to CoreLogic, Australia’s median property price fell 3.4% in the August quarter of 2022.
As the property market starts to cool down, many property owners who are looking to sell may stall their plans and wait until there’s undeniable proof that the market is back in growth mode.
However, this isn’t always the best move.
On the contrary, first-time home buyers and those who are looking to expand their property portfolio are often in a great position to take advantage of the current property market.
In fact, the Sunshine Coast especially offers many potential opportunities if you’re looking to buy property.
Queensland’s Sunshine Coast is one of the most talked about booming house markets in Australia. With forecasted population growth, a fast-growing economy and an unprecedented infrastructure investment pipeline worth billions, the Sunshine Coast is seemingly on the trajectory for high returns on your property investment.
So long as you choose the right property to buy, that is!
Top 5 reasons why now may be a great time to consider buying a property
Whether you are planning to buy your first home or thinking about the best time to invest in real estate, here are 5 main reasons why now may be a good time:
While the news about rising interest rates isn’t great for most property sellers, this is excellent for savvy buyers who are looking to avoid a huge crowd or intense bidding wars.
If you’ve been out to any open houses lately, you might have noticed that there are fewer buyers out there. This decreasing demand also means that property prices are falling on average.
Waiting longer can cost you more money
As I mentioned at the beginning of this article, there’s never a “right time” to purchase a property. In fact, waiting for the most ‘perfect time’ to invest can actually cost you in the long run.
According to research done by PIPA, investors who attempt to ‘time’ the market could lose an average of $140,000. So, don’t wait for this legendary right time. Instead, make the time right by having a trusted Buyer’s Agent like Worth Property Investing to guide you on your property journey and give you confidence.
Owning your own home offers a stable position and place. It enables you to fix mortgage rates and manage foreseeable future costs, whereas rents could go up under increasing demand without your control.
If you’re a property investor, you can also benefit from the current fast-rising rents that may help you pay off your mortgages sooner.
Lenders are offering competitive rates for new customers
One of the major downsides of trying to buy a home now, as opposed to four months ago, is that mortgage rates are higher and likely to continue rising further.
However, with interest rates lower than they were in 2019, average new variable rates are still typically lower than what existing mortgage holders are paying. This just shows that lenders are trying to be as competitive as they can to win new customers like you in a softening market.
Properties are taking longer to sell
As properties take longer to sell, buyers have more time to organise their finance, complete due diligence on properties, and check out what other properties are on the market.
Similarly, as homes take longer to sell, vendors typically become more flexible on their pricing expectations. We can see this in growing vendor discounts which have moved from 2.9% in November last year to 3.8% over the three months ending July.
So, is now a good time to buy investment properties?
Overall, property market conditions do not really determine if now is a “good” time to buy your first home.
The perfect time to buy still comes down to your personal circumstances and goals.
This may include your current living situation, whether that is renting or living rent-free with parents. The security of your employment is also an important consideration, as well as your ability to service a mortgage and how you feel about home ownership and property investment more broadly.
That being said, keep in mind that what we have provided here is just general information.
If you are looking into buying your first home or property investment, expert advice from a local Buyer’s Agent like myself is what you need so you can make your property decision with confidence.
So, if you’re looking to buy a home in Queensland or even across Australia, speak to me and my team. You can be confident that I’m hunting around and checking all of the latest real estate stats, so you have expert advice.
Worth Property Investing can help you buy the right property – no matter what time or what market
My team and I are passionate about helping you make the right home purchase that will contribute towards achieving your lifestyle and property goals.
Think of us as your property buying partner, here to support you in making the ideal property decisions. As your trusted, licensed Buyer’s Agents, we do everything from searching, connecting, researching, bidding, negotiating and securing the best properties for you.
Start by taking the Investor Readiness Quiz now.
By answering 35 quick questions, we’ll provide you with a detailed report to help you be more confident about your investment decisions.
No worries! This is free of charge and takes less than 5 minutes to accomplish. You’ll also get a free copy of our property investment eBook as a bonus!