One of the biggest investment a person can make in a lifetime is buying their first home. As exciting as it sounds, making the right decision with the housing prices on the rise in most of the world can be quite difficult, especially when you want to find a home that fits your lifestyle and family needs but doesn’t break your budget.
With most capital city markets exhibiting signs of slowing down at the end of 2018, the situation has finally become more favourable to make the purchase of your first home, just make sure you take the following accounts into consideration.
Buy when you’re ready
Most experts will say that the best time to buy your first house if when you have sufficient funds saved up to make the first down payment and an income large enough so you can live comfortably as you pay your mortgage. Financial planners usually advise not going over 25% of your monthly budget when you spend on housing, but if you are ready to purchase your dream property, why wait? No one can really say when the market will turn until it does. Many first home buyers struggle with analysis paralysis by trying to know all there is and waiting for a promise of the property’s value in 10 or 20 years. Experts say it’s possible to look back to get insights but nobody can predict the future. Whatever the current market situation is, what’s important is that you get the property at the right price and not miss out on your opportunity waiting for a better deal to come along. Whatever the speculations are regarding mortgage and interest rates, don’t be scared. These are the times of the all-time lowest interest rates so it’s expected to see them rise in the future. But this is something you should factor into your budget during your planning stages so that the talks of rising interest rates don’t discourage you from pursuing your dream of owning a home.
The right time of the year
When it comes to picking the right time of the year to buy a house, you should rely on the calendar as it’s a good barometer – as the year draws to an end, the prices are lower, particularly in December when the inventory on the market usually comes from desperate sellers who are more willing to negotiate. Homeowners who are selling in the midst of the holiday season in November and December are doing so because they have to so potential buyers can use that and negotiate a better price. Some experts say that waiting for after the New Year’s can also be a favourable time. U.S. research data show that home prices are around 8.4% lower at the beginning of the year than in the middle of the busy summer selling season, which is also due to the fact that sellers have to sell and not want to sell.
Get professional help
It’s not unusual for first time home buyers to struggle with the idea of jumping into the market and finding a perfect house that fits all the needs isn’t an easy task in any part of the world, including Australia. Even though the city markets in Sydney and Melbourne have cooled down a bit, it’s still hard to make the first step. This is why it’s important to hire professionals to help you with the task. For instance, hiring a property buyer’s agent in Sydney will make the whole process easier as they are the ones who will help you create a personally tailored investment strategy so you can achieve your goals, show you how to make equity at the point of purchase and make sure you buy the right property at the right price.
Look into financing options
If you’re worrying about your budget, do your part of the research into home financing options your state offers as it might turn out you are eligible for certain special programmes, government grants, down payment assistance or loans. These programmes can make a huge difference in what you can eventually afford.
Buying your first home is surely something you shouldn’t rush into so take your time to do the research, get all the important facts and evaluate your motives and desires before you make your final decision. Only after this and the professional advice you get, you’ll be able to buy a property that fits your goals and lifestyle.