An older, wiser man once told me that there was never a right time to buy property and never a wrong time, only a time that was right for you. It was sage advice that has served me well ever since, but there are other factors that may well swing your opinion if you are on the verge of entering the property market.
Choosing the correct time to enter the property market may often seem like working out a scientific formula. Talk of interest rates, market conditions and rising property prices can send your head spinning. Early indicators for 2015 show rises in Melbourne, Sydney and Hobart. According to an ABC report published this month, the market rose 1.3 per cent on average across the capital cities, with Melbourne leading the gains on 2.7 per cent.
Sydney was the only capital city that beat the average annual rise at 13 per cent, sending its median house price soaring to $850,000. According to statistics from data company CoreLogic RP, the market is shaping for gradually slowing growth throughout 2015. Their report shows that an interest rate cut could stimulate the market, spiking demand and pushing prices higher.
Well not long after that report was published the Reserve Bank did indeed meet and slash interest rates by 25 basis points. As we all know, the Reserve Bank cutting interest rates and the consumer receiving the benefits of those rate cuts via the banks is another story, but I’m happy to report that all four of the ‘Big Banks’ have indeed passed on the cuts. The average standard variable rate is now at 5.65 per cent. On an average mortgage of $300,000 it equates to lowering the monthly payment by roughly $52 per month.
So is it a Great Time to Buy?
With the latest interest rate cut (the first for 18 months) and more forecast, it is as good a time as any to enter the market. You must of course arrange your finances to suit your individual circumstances and it is recommended to build in a buffer to protect you if interest rates rise. The other smart option is to purchase property in areas marked for future growth supported by quality homes and infrastructure.
The extensive range of house and land packages on offer at Mimosa Homes meets all these criteria. We offer an unrivalled home buying experience that ensures you will find the perfect home from our portfolio. All of our quality homes are available in Melbourne’s Northern and Western suburbs and are located in both new estates and existing areas. Supported by local infrastructure and amenities you can’t go past a Mimosa Home. For more information on our range of new homes, contact one of our friendly customer service staff today.