If you’ve been thinking about purchasing your first property, 2020 might be the time to pounce.
Following a long-awaited correction, many property markets across Australia appear to have plateaued and are now once again increasing in value.
According to Corelogic, in January house price values in Sydney alone rose by 1.5 per cent, 6.7 per cent over the past quarter. While the average increase across the nation’s capital cities in just the first month of the year was 1.1 per cent.
Depending on who you speak to, this renewed growth may be attributed to a variety of factors.
This week we saw the Reserve Bank once again leave rates on hold at a record low 0.75 per cent. The central bank is widely expected to reduce the rate further to 0.5 per cent in the coming months.
Meanwhile, competition to lend money continues to heat up, helping to ensure lender interest rates remain low. Anecdotal evidence also points to an increased willingness from lenders to offer home loans to potential borrowers.
In addition, the Government’s First Home Loan Deposit Scheme is helping more people to gain a foot hold on the property ladder. The scheme works by providing a guarantee that will allow eligible first home buyers on low and middle incomes to purchase a home with a deposit of as little as five per cent (lender’s criteria apply).
Long story short the market is on the up and fear of missing out (FOMO) is a real thing. But it doesn’t need to be. Sometimes taking the first step towards a goal is enough to allay concerns and set a person on the right path.
Contacting a mortgage broker early in your search is often a wise idea as it may allow the broker time to understand your circumstances and potentially help prepare you for a successful loan application when the time is right.
Published by MFAA