C&G’s Guide to Buying: When is the Best Time?

When is the best time to buy property? There’s no ‘right’ answer to this question in normal circumstances, let alone in the midst of a pandemic! At this time, buyers are capitalising on competitive asking prices, flexible private sale negotiations and ultra-low interest rates on their home loans. In this latest C&G blog, we examine current market sentiment and address the eternal question; when the best time to buy? Read on.

Are your finances in good shape?

Young couples, downsizers, and new homeowners are the most likely demographics to be buying property at the moment, especially if they’ve been saving a deposit for some time. If you are fortunate to remain an essential employee with secure income, keep on striving to achieve your real estate goals! As investors are predominantly laying low, many first home buyers are capitalising on available stock and competitive prices.

How is market sentiment?

The current property market would be described as a buyer’s market due the variety of stock competing for investor attention. Following the news surrounding a moratorium on tenant evictions and rent assistance, there has been less competition from landlords purchasing investment property. This quieter market means motivated sellers may be additionally willing to negotiate and secure a sale. According to multiple reports, many first home buyers have been able to snap up their dream homes during the pandemic lockdown – a situation they would have thought impossible just a few months ago. It’s important to acknowledge that each property market in Australia is its own microcosm, with blue-chip suburbs such as those in Bayside Melbourne remaining at a premium. Some postcodes may lean harder towards being ‘buyer’s markets’ than others, and research and a relationship with a local agent is critical.

What’s the best season for buying?

Some investor suggest that winter is a great season for buyers, due to reduced competition from purchasers, and the impression that wet and cold weather conditions impact auction crowds. Pair Winter’s natural quietening with open for inspection and auction attendance restrictions, and your chances at purchasing appear increased. Vendors at this time may be additionally motivated to secure a sale and negotiate. Winter 2020 could very well be just the time for you to buy the right property!

Consider interest rates.

The interest rate is at a record-low of 0.25%. Taking on a loan now means you may enjoy more flexibility when negotiating with banks, and ultimately repay your mortgage faster. The key to presenting well to lenders in any season? Having your finances in order! Contact a broker or your financial institution now to better understand your lending potential, putting you in a strong position to negotiate when you find ‘the one’.

Have more questions? Whether you are interested in buying, selling or leasing, the expert team at Chisholm and Gamon would be delighted to assist. Don’t hesitate to make us your first port of call.