Why now is a good time to buy!

By August 1, 2018 Buying Advice
Investment Property Growth

With property prices stabilising, you might think it’s a bad time to enter the property market. Well, the information below may just change your opinion on that.

What stops people from buying property is fear. The fear of paying too much, the fear of making the wrong decision or the fear that the market may crash. But even if prices are falling right now, that’s no reason to be fearful. It is important to understand that when it comes to property you are not in the game of picking the top or the bottom of the market, no one can do that.

Despite the falling prices, property is a long-term investment and over time, prices will rise.

So picking the right time is not as important as you might think.

So why is now a good time to buy?

There are a number of factors that will lead to higher prices over the long term. Here’s just a few:

1) Population growth.

Australia’s population is forecast to grow by three to four million people over the next ten years. This is equivalent to having to build another city almost the size of Melbourne to house all these people. Did you know that Australia’s population growth is faster than India or Indonesia? More people translates to more demand for property.

2) Low-interest rates.

Low-interest rates make property loan repayments more affordable. The low-interest rates are the reason why homebuyers can afford to borrow more today than they ever could. It is important however to allow some buffer when calculating your repayments for the likely event that rates will rise over the time of your loan.

3) More single-person homes.

Today more than ever we have more single-person homes which again results in more demand for homes, particularly units. Data released from the 2016 Census shows that one in four households are single people households.

4) Low unemployment and increased incomes.

Low unemployment and a potential increase in incomes will likely drive ongoing price growth.

Despite the falling prices, property is a long-term investment and over time, prices will rise.

When you consider the above factors, it’s not unreasonable to expect that prices are going to rise over the longer term.

If you have been thinking of buying a property, our team will be able to assist you in making the right decision. Please contact us on 03 9840 7700.

About The Author
Paul Kounnas

Paul Kounnas

For over 35 years, Paul Kounnas has been helping people buy and sell houses in the Manningham area. In 1993 he established Hudson Bond and is recognised as one of the most respected, prominent and knowledgeable members of his profession. A fully licensed Real Estate Agent and member of the International Real Estate Federation, Paul provides regular expert advice and information on all matters real estate related.

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