When is the right time to obtain that perfect home loan?
Fri Mar 28 00:00:00 AEDT 2014
If you’re an aspiring first home buyer, you may be wondering how to buy into the market at a time that will give you the best value for money. The property market in Australia is generally quite cyclical, so Choice Home Loans has put together this guide to the property ‘seasons’ to help you work out your ideal time to get a home loan.
This is often a quiet time for the property market, as many vendors and buyers are on holidays and there is a general assumption that less important business will be done. However, some industry professionals point to summer as the ‘best value’ time to enter the property market, as the lack of competition means you may be able to negotiate a better deal with your mortgage lender and on your property price. “Some of my best buys were bought in the final days before Christmas or in the first weeks of the New Year, when most buyers are on holidays and vendors need a result”, says Rob Farmer, CEO of property management group RUN Property.
Home demand will often pick up in autumn, as buyers and sellers return from holidays and get serious about their financial plans for the year. The Easter holiday weekend also provides a good opportunity for buyers with time on their hands to attend open inspections and auctions – in 2013, the Easter weekend was the second busiest for Sydney auctions with over 680 auctions held and 70% of those reaching a sale.
Vendors will often use the winter months to prepare their property for sale through renovations and repairs, so the supply of homes on the market during this period is usually low. For this reason if you are looking at getting a home loan in winter you may have to borrow more, as lack of supply could force you to bid more for a quality home than you may have done in other times of the year when there are more homes on the market.
The most active time in the property market is often spring, as many sellers will hold off selling over the winter season until their properties look more attractive in the warmer weather. According to RP Data, in the first weekend of September 2013 there were 1792 auctions held across the country, while by the first weekend of October this had increased to 2089. This large supply of properties can sometimes work in the buyer’s favour, as the volume of sellers to buyers means there are a larger variety of homes to choose from, and borrowers can often negotiate a better than advertised price for their new home.
If you’re trying to decide the best time to get a home loan, Choice Home Loans can help. Our experienced and knowledgeable mortgage brokers know the market back to front and can offer you tailored home loan advice based on your financial needs. Make an appointment online to speak to one of our friendly staff today.
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