Deciding to buy property is somewhat similar to deciding to have a baby. It can be a trying process, it’s scary, and people constantly offer you unsolicited advice. Of course, the other similarity is that there’s always that niggling doubt about whether or not it’s the ‘right’ time to jump in and do it. Sadly, we can’t tell you how to decide whether it’s the right time to have a baby, but we CAN share some tips on figuring out whether the time is right to make the leap into property ownership. Whether you’re looking for an investment property or a first home, the leap is a scary one, but there are a few Dos and Don’ts to live by.
Don’ts
Firstly, let’s start with what NOT to do when deciding if the time is right.
Don’t base your decision on newsletters sent to you by Real Estate agents, ‘investors’ you meet at dinner parties or articles in the paper. If you look long enough, you notice that day in and day out the papers report a different state of affairs in the property market, proclaiming one day that the property market in Australia is a bubble that is about to burst, and the next that we’re about to see prices rise even further. Basically, other people’s opinions are like baseball cards. They’re good to collect, but you need more than a few of them or at least a really special one for them to be worth much at all.
Don’t Let yourself be panicked into it. Things like the First Home Buyer’s Grant coming to a close or the market starting to rise are factors to consider to be sure, but they shouldn’t be factors that cause you to over-commit before you are ready. Think about it logically: are you prepared to go into possibly unmanageable debt simply to save $14,000 on the purchase price of the house?
Dos
Now for the things you SHOULD do when deciding if the time is right to buy.
Do your research. Watch properties over a period of time, and figure out exactly what it is you’re looking for. If you start looking before you know what you’re looking for you’re likely to be confused by everything out there on the market; first, make a list of all the things you want from a property, then go searching for options that fit your budget and wish list.
Do talk to a financial advisor and go through what you can and can’t afford, and where you want to be in five or ten years. Markets go up and down, property prices rise and fall, and if you’re in it for the long haul (which we recommend—property investment really only pays off if you hold onto the properties for a while) then the biggest factor in deciding whether it’s the right time has to be you. YOU need to decide if you can handle the commitment, and you need to decide if you’re ready.
At the end of the day, whether you’re buying an investment property in Sydney or a family home in Brisbane, there’s not such thing as ‘the right time to buy’, only the right time for YOU to buy.
Firstly, let’s start with what NOT to do when deciding if the time is right.
Don’t base your decision on newsletters sent to you by Real Estate agents, ‘investors’ you meet at dinner parties or articles in the paper. If you look long enough, you notice that day in and day out the papers report a different state of affairs in the property market, proclaiming one day that the property market in Australia is a bubble that is about to burst, and the next that we’re about to see prices rise even further. Basically, other people’s opinions are like baseball cards. They’re good to collect, but you need more than a few of them or at least a really special one for them to be worth much at all.
Don’t Let yourself be panicked into it. Things like the First Home Buyer’s Grant coming to a close or the market starting to rise are factors to consider to be sure, but they shouldn’t be factors that cause you to over-commit before you are ready. Think about it logically: are you prepared to go into possibly unmanageable debt simply to save $14,000 on the purchase price of the house?
Dos
Now for the things you SHOULD do when deciding if the time is right to buy.
Do your research. Watch properties over a period of time, and figure out exactly what it is you’re looking for. If you start looking before you know what you’re looking for you’re likely to be confused by everything out there on the market; first, make a list of all the things you want from a property, then go searching for options that fit your budget and wish list.
Do talk to a financial advisor and go through what you can and can’t afford, and where you want to be in five or ten years. Markets go up and down, property prices rise and fall, and if you’re in it for the long haul (which we recommend—property investment really only pays off if you hold onto the properties for a while) then the biggest factor in deciding whether it’s the right time has to be you. YOU need to decide if you can handle the commitment, and you need to decide if you’re ready.
At the end of the day, whether you’re buying an investment property in Sydney or a family home in Brisbane, there’s not such thing as ‘the right time to buy’, only the right time for YOU to buy.
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