When Is the Best Time to Buy a House in Australia?

When Is the Best Time to Buy a House in Australia?

Buying a house is a congratulatory move. So, any time of the year will be happy and full of joy if you make such a big purchase. However, when it comes to practicality, things can be different. When it comes to real estate, there are a number of elements that have the potential to affect your decision.   

So, the best time to buy property hinges on a number of elements that are driven by financial, personal and other market conditions.  

Buying a house in Australia is one of the largest investments most people make in their lifetime. But it pays to ensure that the timings are right so that you can select the right property. 

The choice of property will vary depending on your budget, property type, other property preferences, life circumstances, and even the long-term investment goals. 

Having said that, there are a number of other fundamental factors which must be considered for all prospective buyers before taking any big decision.  

Here’s the list of what you must consider before making a huge plunge.  

Property is a Long-Term Investment 

check your finances

Investing in Australian residential property is not like trading stocks. The people who invest in the stock market try to ‘time the market’ by purchasing undervalued stocks which they think will rise in the short-term and they might sell them at the first sign of rise in price.  

Buying a property means you are making a long-term investment. For the biggest and longer gains, you must look for the investments that are beneficial for you in the long run and that are none other than the property. 

The stock market fluctuates on a daily basis. But this is not the case with buying a residential property. The Australian real estate market has gone through slumps in the last decade. The real estate market has been on a strong long-term growth trajectory on the whole. As per CoreLogic, the robust property market conditions from 1993 to 2018 have seen the median house values rise by 412% or $460,000. This long-term growth trajectory does not seem to have been impacted by COVID-19. This is because even during the pandemic and lockdown, the real estate agents managed to sell and buy properties. Virtual inspections were conducted and the operations were carried out smoothly amid the crisis. This is not to say that Australian real estate was not at all affected. The housing market values had a small dip in 2020, and the property values have risen by 12.2% through the first six months of 2021. 

If we jump at the short-term market movements, it will be of little help. 

Figuring out the best time to make such a big decision should be based on the buyer’s personal needs and the situation. 

Check Your Personal Finances  

It is crucial for you to keep your finances in order before you take any final decision. While homeownership brings great financial rewards over time, there is no doubt that it can also pose risks if you overstretch financially.   

Make sure not to borrow beyond your means when you buy property. Also, ensure that you have reliable income streams to pay back. 

Young or new buyers might have to wait a little longer before plunging into the market space. For instance, they might have to wait for the pay rise, job permanency etc.   

Those who are at the opposite end of their career journeys will also have to determine if their reduced income streams will be sufficient to support any costs that are associated with property buying once, they retire. Also, those who are planning a family will have to factor in the increased outgoings that may come with raising children. Apart from this, there are added expenses that you must consider while taking on the property which must also be included in the list of personal finances. For example, there are certain fees that must be paid when buying a house or a unit, as well as any maintenance costs. 

Professional advice is often useful to know if the time is right to make a purchase or not. In order to make the right decision, strategies can be devised to help you get there.  

Give Yourself Enough Time for Preparation  

Research and due diligence are keys to making successful property purchases. You must give yourself enough time to do the preparation. Sometimes, it takes time to look for a property within your price range but many times, you may even get what you want in no time. The real estate property market is competitive and can even be fierce for good-quality homes in the sought-after areas. 

In the real estate market that is rising, it is important that buyers accurately assess a property’s increasing value to make sure they are neither overpaying nor settling for anything too less.  

Here are the three common methods to assess the value of the property: 

  • Capitalization 
  • Summation, and  
  • Direct comparison approach 

Once you identify your potential property, it is important to conduct due diligence which includes the following activities. 

  • Property viewings 
  • Building inspections 
  • Conveyancing 
  • Financial arrangements and other issues that may need immediate attention. 

In the strong real estate market, it is quite common for buyers to take multiple attempts before finally making such a big purchase. Making a decision in a hurry can cost you a lot so do not make rash decisions based on the fear of missing out (FOMO).   

As already mentioned, the Australian property market has been on a strong upward trajectory for decades and will remain so in the near future. 
Whether you buy a house now or you buy in a few months, the overall long-term value difference can be marginal. 

Having said that, if you do find a property that suits your taste and needs, be decisive. It is hard to find good properties. But if you hire a real estate agent, the process gets smooth and the journey to your new home becomes stress-free.    

Finding Yourself A Timeless Asset 

Timing plays an important role in making such a big purchase. The factor of time is important from a financial, personal and a market perspective. The property which is of good quality will be ageless, both from the point of livability and investment.  

Even though the decision to buy a property is naturally driven by personal preferences, it is important to realize that purchasing a home is just like any other business transaction. 

The demand and values for some properties can increase significantly with time – conversely, other property purchases do not age so well. A good property purchase will give you capital growth with time. 

Such properties are those which have a degree of scarcity value, multifaceted demand, and underlying land value and are good for investment purposes. 

Typically, these will probably be the established homes or units in the middle ring suburbs of major cities, which due to the factors above, must have proven their ability to attract strong capital growth, and demand over time.  

When is the Right Time to Buy Property? 

While good properties are available throughout the year, Spring is typically the time when the real estate market is at its peak. This time allows you to choose from a good selection of properties. While buyers may face increased competition in Spring, the higher volumes allow you to find an optimum property. 

However, no matter the time, this decision is most likely to be driven by your personal circumstances and the opportunities available to you.  

The process of finding yourself the right property is no doubt daunting. To make it less cumbersome, contact Manny Singh, the best real estate agent in Hampton Park. Drop a call and let us get started. Manny Singh will guide you through the process, and keep it transparent and open. 

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