Should you buy in a booming market?
By Advantage Property | 30th Sep 17
We hear this question all the time. The answer isn't as simple as you may think.
We hear this question all the time. With the markets in Sydney and Melbourne booming over the last few years it’s safe to say that there isn’t a simple answer to this question. We think it is all dependant on your financial circumstance as well as how you are structuring your home purchase.
First Home Buyers in Victoria for example are seeing a comeback in recent months as legislations have changed to help them into the property market. Some people may always advise not to buy in a “boom” period, but we always say to look at your personal circumstances and specifications when buying to make the right decision. We can only predict certain elements of the property cycle, the days of a dramatic decline in property prices may not happen as it has in previous years as we have seen significant growth in population, jobs and infrastructure. Looking outside the property market will give you an essential holistic view of how to predict the property market. Things like interest rates and political agenda are definite areas to keep in mind when purchasing.
If you are a downsizer and bought well in the first place, buying in a “boom” market may not really make a huge difference to you as you would have sold your family home for an inflated price. It is all relative to interest rates and also your own personal circumstance, and lifestyle choices. If you look sell in a hot market, the chances are that you will get a great price of your home and be able to downsize to the style and specifications you desire.
If you are an investor regardless of state or market trends, it all comes down to your strategy and financial goals. Is the rental market for the particular type of investment you are looking for performing well? Are the rental returns in the particular suburb you are looking in going to stack up? These are part to smart investing so we recommend really understanding your investment plan to make the right purchase in a hot market.
There is a reason why we are market leaders when it comes to buyer’s agents, vendor advocacy and property managers. With our experience, market insight and proven record of accomplishment and success, we are seeing clients who are First Home Buyers to seasoned investors utilising our services for a stress free and positive solution. If you would like to chat about how we can help you, email firstname.lastname@example.org