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Stop trying to ‘time’ the market. The market is ready when you are ready
There’s a question many would-be home owners ask: “Is now a good time to buy?”
It’s a great question – buying a home is a big deal. And there’s no shortage of headlines about market trends, interest rate moves and property cycles that can leave even the savviest potential buyer a little overwhelmed.
But after years of supporting home buyers, what I’ve learnt is that the “best” time to buy a home often has less to do with the market and more to do with your financial and personal position.
Let’s unpack what that means.
The market’s always moving
Property prices go up and down, as do interest rates. And what’s a hotspot one week may not be in six months. It’s smart to keep an eye on what’s happening – and there are a lot of resources that can help you stay across things, including seeking advice from those whose job it is to stay in the know, such as an experienced mortgage adviser. But trying to perfectly time the market? With so many variables, it’s almost impossible.
If you’re holding off until prices bottom out or interest rates fall to a certain number, you might end up waiting longer than you’d like and missing out on that perfect place.
We are blessed in Australia that property is generally a positive long-term investment. The right time to buy can be somewhat different for an owner-occupier buyer than an investor, but one of the main considerations is how long you are planning to hold on to the property. If you plan to hold on to a property for 10 years, then even buying at the top of the market curve can still be a great investment over time.
So, when is the right time?
A better question around timing might be: Are you home-ready?
Here are a few signs you might be:
• You’ve got a stable income.
• You’ve saved a deposit.
• You’re ready to stay in the one spot for at least a few years.
• You’re comfortably on top of any other debts.
• You’ve thought seriously about what you want in a home – and your life.
Ticked most of those boxes? Great, you’re off to a solid start.
What ‘ready’ looks like is different for everyone
Some people are ready in their 20s. Others are in their 50s. Some are buying solo. Some are buying with a partner or even a sibling. There’s no “right” or “wrong” buyer.
The key is knowing what works for you – not your colleague who bought a fixer-upper five years ago, or the friend who keeps sending you stories about how the coast is “going off”. It’s being knowledgeable of what is right for you, and at Sky Blue Finance we can help you strategise and work out what that is.
What about interest rates and property prices?
Rates and prices do affect how much you can borrow and your monthly repayments. That’s why it’s important to understand where things are at.
But instead of waiting for the perfect time, it can help to understand what your borrowing options look like right now – and whether the repayments fit your budget.
It’s here that a quick chat with a licensed mortgage adviser can be a great help in giving you a clearer picture without any pressure to make a move.
The bottom line
There’s no one-size-fits-all answer to when you should buy a home. The “right time” might not be when your neighbour or the newspapers say it is. It might just be when you’re ready – emotionally, financially and practically.
Not sure whether that’s now or later? That’s okay too. At Sky Blue Finance, we’re happy to talk things through with you, with no pressure on a timeline. Just honest, straightforward guidance to help you work out what’s right for you. Get in touch today and we can start your home ownership journey.
📞 Call Peter on 0414 602 491
📧 Email Peter at info@skybluefinance.com.au
Note: The above information is general in nature and does not constitute personal financial advice. It has been prepared without taking your unique objectives, financial situation or needs into account. You should seek your own independent advice as to whether or not this information is appropriate for you.
Image: Connor Gardenhire via Pexels