The current property market presents a complex scenario for potential home buyers and sellers. Interest rates are high and house prices are falling, yet they are still significantly higher than they were five years ago. Additionally, many are facing a cost-of-living crisis. To gain insight on how to navigate this market, we look at different scenarios – a first home buyer, investor, or upsizer/downsizer and whether it’s a good idea to buy or sell now and why.
For some homebuyers, timing is important. If they need to move out of their current accommodation or sell an existing property, now may be the best time to do so. If they cannot afford to buy with current interest rates, they may have no choice but to find a place to rent.
Other homebuyers have been planning to buy and are now in a position to do so. They are not focused on whether property values might drop as they intend to live in the home for a long time and they do not want to wait as they have a plan that allows them to buy.
If you’re selling one house and buying another, property prices may not be as significant as you are buying and selling in the same market. This allows you to make the move you need to.
For first-time homebuyers with a good relationship with their bank or a good mortgage broker who can advise them on how to secure the best deal when it comes to borrowing, it may be a good time to buy. There are a lot of properties on the market and prices are affordable again. Some good investment properties are also available, with the potential to make gains in the future.
As for an investment property, if you’re in it for the long game, buying an investment property may be a good decision. However, it’s important to make sure you are able to hold onto the property for years and cash in on the capital gain in the future.
If you’re looking to upsize, downsize, or move to a different town, it may also be a good time to do so. The old saying “you buy and sell in the same market” holds true. If you wait for the market to go up to get a higher price for your property, you will have to pay a higher one to buy as well.
However, for those who bought a house in the last two years, it’s important to analyze the reasons for wanting to sell. If you need to sell, then go ahead. If you’re not sure why, it may be best to wait and reassess the market.