When it comes to the right time to purchase a property, it all comes down to personal circumstance. There’s no “perfect time” to buy a property and no such thing as being “too young or old”.
It is important to understand the “fundamentals that come into play” when deciding when to buy.
Income now & in the future
A history of a stable, regular income, with the prospect of the same in the future is a must-have. Without it, the banks simply won’t lend to you, or (they will, but) at a much higher rate than desirable,” May says.
Life stage
If the need for stability is rising, buying might be a good idea. Having your own place means you can have that purple bathroom you’ve always dreamt of. When you’re a tenant, you are at the behest of the landlord, who may up the rent regularly, stop you from making changes and also turf you when it suits them.
Tin lids
The imminent arrival of children can have a big impact on buying desire. It’s about the need to create that family home for your child, where memories are made and pictures are hung on the wall.”
Don’t try to predict the market…
Never choose to buy because of what someone says, which may or may not happen with the market.
Even the experts cannot agree on what is going to happen and trying to predict the bottom of the market is a waste of time. If you are ready to buy, then buy today, as having your own home is a long-term exercise and any short-term rises and dips in the market really don’t matter. If you find the right place, do your research and buy it.
Factors that matter
The most important factors for potential buyers to consider are their ability to actually pay a mortgage and a willingness to compromise, which is almost always required.
Be realistic and honest with your budget; not giving your broker the full picture of your lifestyle habits and expenses will only come back to bite you, as you will end up eating baked beans for the next 20 years. No home ownership is worth that!
It’s usually the case that your rent can afford you a nicer and bigger place than your mortgage will. This is sometimes a hard pill to swallow for people who first enter the market to buy. So, be prepared to concede on some things.
Surround yourself with a team of professionals who can provide you with ongoing support and expertise in securing your financial future.
The Addisons Team are here to help!
