While it may sound like an oxymoron, there’s never been a better time to buy property than at the start of this financial year – so what are you waiting for?
Depending on your profession or personal circumstances, the end of the financial year can be a stressful period. However, it’s not uncommon for many people to get reflective during the middle of the year, and use this period to assess how their goals are tracking.
For many people, the middle of the year often doesn’t come with the same burst of inspiration that January is usually associated with. In reality, there’s never been a better time to kick your personal goals, particularly if it’s linked to the world of property.
Three Reasons To Buy Property In 2022
The latest figures from the Australian Bureau Of Statistics show the value of the country’s 10.8 million residential dwellings rose by $221.2 billion in the three months to March 2022, bringing the total to $10.2 trillion – the first time in history that the Australian property market has reached such an eye watering figure.
Despite market conditions running red hot around the nation for close to two years, all the signs are showing things might finally start to cool down. Suburbs in inner city Sydney and Melbourne have long been regarded as the most sensitive to market changes, and the recent spate of interest rate rises have appeared to start taking effect.
While many news outlets are projecting an image of economic doom and gloom, not everyone is in the same inflation related basket. Although the price of lettuce is certainly a well founded talking point, many first home buyers have spent two years patiently waiting for the market to deflate.
If that resonates with you, the good news is that there’s a few more changes coming that indicate that now is the perfect time to buy property. Trying to find the balance between not overstretching yourself with a mortgage and getting out of the rental cycle is never easy, but there are a few new variables to consider.
Rising Interest Rates – Although it may sound counterproductive to buy property when interest rates are on the rise, in reality they’re only going to go higher – meaning that now is the ideal time to secure a mortgage with fixed term interest rates, or even explore your options for other features such as rate lock.
New Government Initiatives – With a new party now in power, Labor has released a whole new spate of initiatives specially designed to help first home buyers break into the market faster, particularly the Home Guarantee Scheme. With a limited number of places available, now is the time to submit an application and avoid missing out on the potential benefits on offer.
Cooling Market Conditions – According to figures released by ANZ in May 2022, Australian house prices are set to drop by 3% in 2022, before falling by 8% in 2023. While this may not apply to all corners of the nation, first home buyers should use these figures as a time frame indicator for getting organised with their paperwork and savings regime.
For first home buyers looking to take advantage of new initiatives such as the Home Guarantee Scheme and buy property faster, it’s important to note that not all Australian lending providers are participating.
In addition, the ones that are still have wildly different loan options in terms of features, fees and interest rates – so the services of a reputable mortgage broker have arguably never been more helpful to determine the right fit for you.
Your Guide For Navigating The World Of Home Loans
With a background in banking, finance, business development and project management, there’s no better advocate to have on your team than Nikki Berzin. As a fully qualified mortgage broker and director of Cherry Lending & Finance, Nikki is passionate about all things finance, and empowering her clients with the tools to hit their property goals is what she does best.
If you’re looking to get into your first home, purchase an investment property or even want to look at your options for refinancing, the first step is starting the conversation. Get in touch with Nikki today, or call her directly on 0427 374 155 to bring your mortgage dreams to life.
Disclaimer: Your full financial needs and requirements need to be assessed prior to any offer or acceptance of a loan product. Subject to lenders terms and conditions, fees and charges and eligibility apply.
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