This is the question everyone asks themselves before they decide to buy for the first time. Buying your first property is probably the biggest and most expensive decision you will make so getting the timing right is very important.
Most people I know tell me they are waiting for the market to slow down, prices are too high or that the bubble is going to burst or maybe that interest rates are too high and so on. So they wait; and wait and wait. When the market does slow down they wait again thinking the prices will go down even further. When the bank raises interest rates they wait for them to come down and when they do eventually come down they don’t like what’s available on the market.
This makes me think they are not really interested in buying a property, but making excuses is an easy way to justify it. This may sound harsh but, it’s the truth.
So when is the right time? It's when it becomes a priority and it’s all you think about. It’s like when you decide to lose weight, give up smoking or save money for that European trip. When you get to that stage it's time to ask yourself these questions:
How much savings do I need for a deposit?
What is my borrowing capacity?
Do I earn enough money to be able to make mortgage repayments?
What sacrifices will I have to make to be able to afford a home?
Once you have answers to these questions your dream becomes much clearer and the journey towards becoming a homeowner and not paying off someone else’s mortgage becomes exciting; and attainable.
A home loan generally has a lifespan of 30 years and no one can predict what the market will do in that time. There will be ups and downs, but you can make it worthwhile by having a home loan that's structured for optimal performance and playing the long game.
I always tell my customers, that the right time to buy is when you are ready and excited about the journey. There will always be a happy ending.
To find out how much you can borrow and how much savings you need in order to purchase your home, give us a call on 0487 344 352.