Should You Wait To Buy Property?

In the world of real estate, timing is everything – but with rising interest rates and a predicted market crash, is waiting to buy property really a good idea?

Unless you’ve been living under a rock, the property market has been dominating the headlines right around Australia. With a widely anticipated cash rate hike announced in the middle of an election campaign, many industry experts are predicting that the golden age of real estate is over.

Should You Wait To Buy Property

However, that depends on which camp you identify with. For sellers, unprecedented property prices that have surged over the past two years were warmly welcomed. While buyers have had access to a range of grants and low interest rates, the skyrocketing prices meant that home ownership had become out of reach. With the market predicted to crash or at the very least see prices fall over the next few months, is it a good idea to sit tight and wait for a cheaper deal?

The Case For Buying Now Or Later

Determining whether you should proceed with a property purchase now or wait for prices to start to fall will all depend on your personal circumstances. In addition, there are a number of outside variables to consider as well. 

Firstly, it’s always a good idea to look to the past before making decisions about the future. In the last twelve months alone, Brisbane property prices have increased by a whopping 30%. As a surprise leader in the property market, we’ve managed to outstrip our southern neighbours in Sydney and Melbourne, who trail behind with 20% and 27% growth. 

While the latter two capital cities are already bearing the brunt of falling property prices, Brisbane is seemingly holding steady. Queenslanders have some pretty exciting developments on the cards, especially in relation to the upcoming 2032 Brisbane Olympics. Huge amounts of money is being invested in underground tunnels, infrastructure, highways, light rail and even casinos. 

As such, it should come as no surprise that buying in Brisbane is regarded as one of the safer bets when compared to other capital cities, as it is unlikely to be exposed to such radical pricing swings. However, there are also a number of other variables that are arguably outside the control of the average buyer, and are worthy of your consideration when weighing up whether to buy now or later. 

Almost every economist in the country is saying to expect further interest rate rises. Traditionally, the higher interest rates go, the more property prices fall. This is because they have the potential to cause mortgage stress and even cause more properties to return to the market, which in turn will help to alleviate the lack of supply Australia has been grappling with. Keep in mind this is also in addition to the rising cost of living, higher fuel prices, and even the uncertainty linked to the unfolding war in Europe.

If you’re hoping to see cheaper houses before entering the market as a buyer, there is one crucial component to remember – buying is investing in your own future, especially if the alternative is renting. As an example, if a tenant were to rent a property right here in Seven Hills for $850 per week, over fifty two weeks, that adds up to over $44, 000 over the course of a year. If calculated over a ten year period, it’s almost half a million dollars that’s been spent paying off someone else’s asset, when it could have been yours. 

For those weighing up whether buying property now or later is the best choice, it’s important to get the right advice instead of making big decisions based on guesswork. As of September 2021, mortgage brokers wrote 67% of all residential home loans in Australia – the highest number ever recorded. What’s more is that 90% of these customers reported that they were happy with the services provided to them. If you’re thinking about applying for a mortgage or are about to be, then it’s worth getting in touch with the professionals. 

Partnering With Home Loan Professionals 

Navigating the complex world of home loans has long been regarded as stressful, frustrating and time consuming – but if you can find the right advice on sourcing how mortgages work, then the good news is that it doesn’t have to be.

Since their inception in 2012, the team at Madd Loans have worked tirelessly in providing over 2,000 Queenslanders with finance options to help turn their dreams into reality. With the entire brand being built on referrals, owner George Samios takes great pride in making the loan process both fun, educational and stress free – and he has a swag of awards to prove it.

If thinking about your financial future strikes a chord with you, then it might be time to speak to a professional. Whether you’re chasing mortgage solutions or a financial fairy godmother, the team at Madd work together as a collective to turn your goals into reality.

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