The property market has definitely experienced some ups and downs which may have caused first-time homeowners to shy away from the market, but this festive season could be the time for you to get a foot on the property ladder. These are the six ways in which you can step on with confidence without putting your finances in jeopardy.
1. Avoid the peak time in the property cycle
Like everything else, property markets work in cycles. However, the catch is knowing that the property market in Australia is not uniform. This means that although one area may be heating up in terms of finding an affordable property, other places could be cooling down in house prices. It is usually best to purchase property when it’s a sellers' market, which means less competition from fellow buyers and more options when it comes to sellers looking to sell their house. December is usually a peak time for buyers, which basically mean you will be able to score a good deal pre-Christmas and after Christmas.
2. Properties that have been on the market
One of the best ways to secure a way onto the property market is to look for houses that have been listed for a long time. Such houses usually come with a discounted price and also have sellers that are more open to negotiating since there will be a deeper drive to get their house off the market. Remember to put in the research so that you can negotiate your way to a realistic price.
3. Get a pre-approved loan
The average first time home buyers share of the market was at 18%. Most first-time home buyers are most likely going to take out a home loan to finance their way onto the property market. Therefore, getting a pre-approved home loan can improve your chances of nailing your first home offer. This could mark the difference between you and another buyer who still has to get their papers in order to purchase the house. This can also be vital when you are purchasing a house during the fast-paced Christmas season.
4. Know your numbers
Doing your research is one of the best ways to clue yourself upon whether you are getting the best deal for your money. Looking up similar properties that are being sold in the same area can help you set realistic negotiating goals. It can also prevent you from being sold a house that is that is worth more than it really is. Keep in mind that a good negotiator never reveals their budget, but haggles their way to a price that is suitable for their pockets.
5. Be careful of the lender you choose
Not all lenders are created equal and not all lenders will offer you a competitive home loan. Check to see if your lender will offer you a loan that comes with the best competitive rate by comparing lenders rate. Check the interest rate and whether the loan comes with features that are suitable to you such as an offset or redraw facility. The fees and charges of a loan can also make or break the deal.