Buying your first home is a goal for most, but it can be overwhelming with a lot to consider.. have a read of our simple checklist to keep in mind when buying your first home.
Amid the property boom, investors may be wondering whether they are better off waiting it out, or biting the bullet and purchasing now?
Australia’s current market is seeing a lot more buyers than sellers, causing prices to skyrocket, as well as making it complicated to identify good assets and even trickier to secure one.
However, if you are a homeowner, the heat in the market is beneficial as you begin to build up equity in your property, allowing you more room to move price-wise in your next purchase.
So, what should you do if you are looking to invest in the middle of a property boom? Expert investors from OpenCorp suggest that if you are financially ready to invest, you should invest, irrespective of the market.
Timing is of course crucial with investments, as if you buy low and sell high – you come out on top, however, predicting the timing of the markets can be near impossible and even the experts can get it wrong. According to Property expert Michael Yardney, you are better off focusing on how you buy and how you add value.
On the latest episode of The Smart Property Investment Show, OpenCorp director Matt Lewison says, historically, house prices don’t go down as much as they go up, meaning your risk isn’t hanging in the timing of your purchase as it is as much as the market you choose to invest in.
Michael Yardney lists some important factors you should start identifying before you invest. Once you have calculated your affordability and which market you want to invest in, look at indicators in your chosen area including:
- The unemployment rate
- Interstate migration
- Population growth
- Wage growth
- Monitoring developing activity
- What’s under construction
- Vacancy rates and rents
These factors can give you an idea of what the future holds for your investment and whether or not there is room for gains.
As record low interest rates are predicted to stay until at least 2024 and auction clearance rates remain high, there is still a lot of runway ahead. However, leading property market analysts at CoreLogic, Tim Lawless believes the APRA will be very closely watching the debt-to-income ratio concerning current lending standards.
If the APRA does step in, we will of course see fewer people able to get into the market, slowing down current market growth, so now might be the time to capitalise.
If you’re thinking to invest, contact the team at Azura Financial. We are a highly qualified and experienced team, so you can be assured you’re receiving the best advice with premium customer service.