When’s the Right Time to Buy a Property? The Answer Might Surprise You! 

Purchasing a property is the Australian Dream. There is a reason we invest so heavily in property, and property is usually around 30% – 60% of most households’ net wealth. Buying a property is a step towards life-long achievement and proves a sense of security. 

So “What is the right time to buy a property?”. Many pundits try to predict the market and predict the top/bottom of the market so that they can buy or sell at the right time. However, the truth of the matter is that any time is the right time to buy as long as you are doing it for the long term. The only time you lose money on a property is when you are forced to sell. If you never sell a property, you will never lose money on the property. Yes, that’s a universal answer! Some argue that a buyer should wait for the interest rates to go down while others argue that you can buy property when you have saved up a 20% deposit. However, with the help of a good mortgage broker like Divitis Finance, you can step into the property market with a much lower deposit threshold.

There are some important factors to consider when making the decision to purchase your next property.

Interest Rates- There is a lot of focus on interest rates, and the impact these can have on your cash flows, however, the simplest thing to consider is, you can always refinance! If the interest rates drop further down the track you can refinance your loan to lower your interest rates. If the interest rates go up, you need to ensure that you have enough buffer left in your cash flows to manage this increase in expenditure. However, you can leverage Fixed Interest rates with your lender to get the best possible rate for as long as possible. It really depends on your personal preferences and the motivations behind your purchase.

Long-Term Property Price Graph- Analyzing the long-term property price graph of your preferred location is another important step in choosing the right time to buy. Real estate markets are dynamic and understanding trends can help you make knowledgeable decisions. Remember to look for patterns such as steady long-term appreciation or periods of stability after downturns.

Generational Wealth– The properties you purchase now, within 25-30 years depending on your mortgage, will be paid off, these properties will then become positively geared and generate net positive cash flow, and this wealth will be passed on to your future generations.

Holding property doesn’t lose money

One fundamental principle in property investment is that you only lose money if you’re pushed to sell during a downturn. Property values can fluctuate, but if you have a long-term outlook, you can swing out market cycles and potentially benefit from the appreciation over time. Further, holding onto real estate for the long term has proven to be a good financial decision. 

The real estate market is ever-evolving and growing. The market is majorly influenced by factors such as economic, political and social. The correct time to invest in a property varies from person to person, based on the individual’s objectives, circumstances, and financial perspectives. This is where a mortgage broker can help you! Mortgage brokers are financial experts who are specialized in assisting potential buyers in securing the best possible mortgage deals. Divitis Finance as your mortgage brokers work as mediators between lenders and borrowers, and our expertise can be priceless when it comes to buying property. 

Why Divitis Finance as your mortgage broker 

Here’s why you should consider working with a mortgage broker:

  1. Expert Guidance: Our experts have a great understanding of the market. They can study your financial situation, creditworthiness, and personal objectives to suggest mortgage options tailored to your requirements.
  2. Access to Multiple Lenders: We work with a vast network of lenders, including banks and private lenders. You can leverage our network to shop around for the best mortgage rates and terms. 
  3. Streamlined Process: The mortgage application procedure can be overwhelming, but mortgage brokers like us work hard to simplify it for you. We can handle all the communication with lenders, paperwork, and negotiations, saving you time and stress.
  4. Market Insights: We keep ourselves up-to-date regarding the evolving market trends and can provide valuable insights. 
  5. Customized Solutions: We understand that everyone has different financial situations. Our professional mortgage brokers take this into account and work to find a solution that aligns with your objectives.

One thing to mention here is that even if market circumstances are not in your favour, Divitis Finance helps you secure a mortgage that fits your requirements, no matter what time you decide to buy property. 

To Conclude!

In the real estate market, there is going to be a short time because of its dynamic nature. It is really difficult to predict the right time that aligns perfectly with your goals. Nevertheless, it does not mean that you have to put your homeownership on hold. With the help of Divitis Finance, you can make it possible. We will help you steer through the market complexities and achieve your goals, regardless of any market fluctuations. So, whenever you are ready, we are here to smoothen your journey! Reach out to us! 

Scroll to Top
Skip to content