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The Right Timing is Right Now

18 Feb 2014

This is the advice of Better Bond Home Loan CEO Shaun Rademeyer to young people planning to buy their first home this year. He says that in buying a home, as in purchasing shares, market timing is not the only factor that should be taken into account.

Prospective homebuyers should look at property purchases apart form interest rates and home prices,
they need to consider variables such as type of house, price trends in the area they prefer, possible renovation costs, transfer costs and the availability of finance and be prepared to jump in at the moment when most of these seem aligned in their favour.

Realistically, there is very little chance of achieving
"perfect timing" in the property market, so those who are keen to buy their own home should rather concentrate their energies on finding a home that suits in an area with good growth prospects, at a price within their loan qualification limit. The chances of doing so right now are pretty good, but may not stay that way for long because stock levels are shrinking in many areas and putting prices under pressure.

Similarly while interest rates and home loan qualifications are currently at their lowest levels in decades, they are widely expected to start moving upwards again this year and making home ownership less affordable once more.

Meanwhile, he says it is worth noting that interest rates are bound to go up and down during the term of the home loan, buyers that take the plunge usually find that the actual repayments tend to average out, while the value of the property tends to keep rising, and gearing to work in your favour.

Property Junction News Article 29/01/2014