Should I buy property now or wait until 2019?
If you’ve been following property prices for a while you’d know that the market moves in cycles.
Usually following a cycle of significant growth, prices will stagnate (or drop a little) and then flatten out before beginning to rise again.
After Sydney experienced significant growth between 2014 and mid 2017, Sydney house prices have started to flatten, leaving first home buyers wondering if they should buy now or wait and see if prices fall further.
So, what should you do?
One thing to keep in mind is that financial experts are predicting that the RBA will lift the official cash rate sometime in late 2018 or early 2019.
If property prices fell -3% but interest rates increase by +0.5%, the below infographic demonstrates that it’s still better buying now rather than waiting until 2019.
First Home Buyers shouldn’t be waiting and hoping for Sydney housing prices to fall. They should be acting now.
This is the advice of Sydney Mortgage Broker, Scott Durrant, who says it’s impossible to know for sure whether values would rise or drop in the coming months.
“If you’re a homebuyer with the intention of staying put for the next 10-20 years, I don’t see the point of putting your life on hold in the hope of saving a few dollars based on a possibility that the market may fall,” he said. “By doing this, you could also risk interest rates going up and missing out on really low fixed rates”.
“So if the market does flatten, it will pick up again. History has shown you will come out on top.”
(Recent Update – December: Read the latest Housing Market Forecast and Buyers Guide for 2019)
You won’t be able to time the market
With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Successful Ways do all the leg work and find the best lender for you.
If you’re ready to take action now, speak to one of Sydney’s top mortgage brokers for a free home loan discussion.
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