In the competitive arena of buying a property, it can seem like the goalposts are forever moving.
Trying to juggle a ball between interest rate rises, new bank rules, borrowing limitations, and waiting for ‘good’ properties to be listed for sale can seem like an impossible task… especially for tenants trying to break into the market, whilst also keeping on top of rent.
So if you’re wondering if now is a good time to take the leap, the answer is yes.
In fact, for those who plan to hold onto their property for years to come, shopping and securing a home now could put you at a real advantage in the future. We know this statistically, through the ‘double a decade’ trend – dictating that Australian property prices will double every ten years – a phenomenon that’s been evidenced in all Australian capitals since the middle of the century.
So while prices are currently on a downturn, it makes a lot of financial sense for tenants to act now. Bargains are born in a softening market – and, well, ‘buy cheap sell high’ pretty much says the rest.
Nevertheless, we know this goes without addressing one major elephant in the room; banks, and borrowing power. But while it’s not quite as simple as saying ‘borrow within your means’, knowing this much will get you most of the way in 2022 (see our 5 tips for trying to get a mortgage).
For tenants concerned about saving enough for a deposit – while also trying to maximise borrowing capacity – the best place to start is with a proper assessment of your income and expenses, which will help you to determine a healthy budget for buying a home.
It’s not something you have to do alone, of course – turn to the coaches at the forefront of the game; the mortgage brokers. Through an accurate assessment of your current finances, and with up-to-date knowledge of bank rules and regulations, Alexia Pettenon (Mortgage Broker at Bid and Borrow Finance – 0438 631 353) can point you in the direction of a loan that’s right for you.
The bottom line is, with good advice, it’s totally possible for tenants (and all home-seekers) to buy in the current climate. And if you intend to hang onto that new property, you’ll almost undoubtedly reap the benefits in years to come!
Prudential Real Estate Campbelltown | (02) 4628 0033 | campbelltown@prudential.com.au
Prudential Real Estate Liverpool | (02) 9822 5999 | liverpool@prudential.com.au
Prudential Real Estate Macquarie Fields | (02) 9605 5333 | macquariefields@prudential.com.au
Prudential Real Estate Narellan | (02) 4624 4400 | narellan@prudential.com.au
