Today’s market is giving off all sorts of crazy signals. Prices are strong, mortgage rates rise, fall and rise again, and the number of homes for sale stays stubbornly below historical averages.
Making a rational buying decision is tough with all this noise around you.
You’re probably asking: “Should I buy now? Do I hold on to see if prices decline? Can I risk failing to lock in a mortgage rate now when pundits say they’ll move higher?”
It’s enough to make anyone’s head spin.
But everything will work out if you seek professional advice and plan carefully.
Be money-wise
Always consider the impact of a mortgage on your lifestyle. Be prepared to make sacrifices to enter or expand your investment in real estate, but don’t overextend yourself so life becomes dull.
Make a list
A checklist of “must-have” and “nice-to-have” features is an excellent strategy for guiding your buying decision. If it doesn’t tick all your boxes, the chances are you’ll be frustrated with the property down the track.
Keep a cool head
Don’t rush into anything. Panic-buying because you’re afraid of missing out is a leading cause of buyer’s remorse.
Be future-proof
If you’re a young couple planning a family, you’ll need a home to cope with those demands. Purchasing a one-bedroom apartment will send you back into the market before you know it, with all the expense that entails.
Fixer–Upper
Buying one of these is a cheap entry into real estate. But if you don’t have the budget to make it perfect, it will drive you crazy. If you have a low threshold for inconvenience, or are super-busy, you should also avoid these properties.
Low-ball bids
Buyers save these bids for a home they like only because they think they can get it cheaply. If you’re genuinely interested in a property, make a reasonable offer but leave fiscal headroom for negotiation.
Timing the market
Don’t try to pick the moment when prices bottom. No one can predict that with 100% certainty. If you see a property you like, make an offer. Many buyers curse “the one that got away”. And it’s usually because of their own actions.