If you weren’t sure about entering the property market in 2020, there are many compelling reasons to do it right now.
Here are five reasons why the current market is working in favour of home buyers.
- Low interest rates
The number ONE reason why people are considering buying right now is the low interest rates.
The beginning of 2020 was difficult for the people and the economy, with severe bushfires and the coronavirus outbreak. However, things are looking up in the housing market, with auction clearance rates rising throughout Australia.
With interest rates at its lowest ever, right now is the perfect time to talk to a mortgage specialist about the home loan options that might be ideal for your current situation.
- The cost of buying vs renting
If you’re renting and a first home buyer you’re probably attempting to determine what would cost more between buying and renting.
In some cases, the cost will be very close. In other cases, it might actually be less expensive to buy a house, depending on its location and type.
If you’re thinking about this, it might be time to calculate your rental expenses.
- Less travel means bigger savings
With plenty of travel possibilities still in the pipeline in Australia, many could have saved thousands of dollars that they would otherwise have spent on overseas holidays and social expenses. So, what can you do about those savings?
People are still not completely free to spend their money. In some states, you’re prohibited from travelling interstate. You might be saving for a fabulous trip now but are thinking that “it’s a major challenge to do it this year, it might not happen next year, let’s use that money on something else.”
- Work from Home Flexibility
More and more people, both employees and employers, are choosing work from home arrangements.
What this means in relation to purchasing a house is that you can choose a location that is further away from your current workplace and often something larger.
Choosing an area further away from the CBD is also likely to offer more bang for your buck in terms of real estate.
- Incentive Schemes
The federal government has extended its First Home Loan Deposit Scheme until 2021. The scheme allows first home buyers to buy a home with a deposit as little as 5%. Usually, home buyers would be required to pay a 20% deposit or pay an additional Lenders Mortgage Insurance (LMI) fee.
With this scheme, first home buyers don’t have to save a huge amount for a deposit if they want to enter the market ASAP.
There are other incentive schemes geared towards first home buyers that make buying now more appealing. Most importantly, there are various state-defined First Home Owner Grants and concessions for people who are making their first home buy.
If you are considering upgrading, there are also incentives available. For example, there is the Regional Home Building Boost Grant in Queensland and the BuildBonus Grant in the Northern Territory. Rules vary by state.
Even if the present is the perfect time to buy a home, knowing where to begin is the main problem. To get you started with a little more confidence, there are tools and support available to you. All you need to do is ask!