3 signs it's time to buy a home
Tue April 24, 2018
When is the right time to make a move in the Sydney property market? Regardless of whether you're looking to buy or sell, this can be a tricky question to answer, so it's important to make an informed decision. The best way to do this is by keeping an eye out for a few key signs that clearly indicate both you and the market are in a good place. Over the next series of articles, we'll be outlining what these signs are, and what they mean for you.
In this first instalment, we're looking at Sydney property buyers, and how they can know when it's time to take the plunge and enter the market.
The first and most important sign to look out for when it comes to buying a home is financial stability.
1. Financial stability
The first and most important sign to look out for when it comes to buying a home - particularly if it's your first real estate investment - is financial stability. This means having enough money saved up to comfortably cover the deposit, as well as any associated costs. These costs, which include everything from stamp duty to legal fees, can quickly pile up and add a significant amount to the total sum required upon settlement. Accordingly, it's vital to have enough savings to comfortably cover every element of the purchase.
In addition to the money required up front, it's also important to have financial stability in terms of meeting mortgage repayments. You should be confident in your ability to meet these without having to sacrifice your quality of life too much, or compromise on retirement and emergency savings.
2. Personal stability
As well as being financially strong, before committing to a property purchase in Sydney it's critical to have a certain level of personal stability. For example, if you know that you could be required to relocate to another city or state for work, it may not be the best idea to invest in a home. Similarly, if you've been considering a change of career or anything else that might impact your ability to meet mortgage repayments or cover the costs of home ownership, it's best to wait until you're in a more stable position.
You'll also need to consider how ready you are to commit to home ownership. It's a long-term investment, and one that needs to be taken seriously in order to produce a return - either through an eventual sale or by building up a rental portfolio. However, if you're financially secure and ready to commit, it's a great sign that you're ready for real estate.
Even if you're financially and personally stable, you'll need to look for signs that the market is ready for you too.
3. Market stability
Finally, even if you're financially and personally stable, you'll also need to look for signs that the market is as ready for you as you are for it! However, this doesn't necessarily mean that prices have to be lower than usual. Instead, the main thing you should be looking for is a stable market, where prices and stock are at a consistent level and provide you with the options and bargaining power you'll need to secure your dream property.
You should also avoid attempting to buy during periods when there are low levels of stock and high buyer demand. This is what's known as a 'seller's market,' and it often results in quick sales at higher-than-normal prices. If this is the situation in your area, it may be best to take your time and wait for the ideal opportunity.
The Laing+Simmons team is here to help you identify these opportunities. Get in touch with us today to find out more.