Property Prices on the decline, but should you care?
- 21 December 2018
You might have heard talk in the news recently of a decline in property values around the nation, most especially throughout our major cities. But, as a first home buyer, should this stop you from buying your first property? Those unfamiliar with the property market might be feeling a little uncertain about making the move into their own home during times uncertain times like these. However, for first home buyers, this can still be an ideal time to get a foot in the door to the property market.
The perfect time to buy is when you’re financially ready
The perfect time to enter the property market is not when prices are at their lowest, or even their highest, but when you are financially in the position to be able to afford it.
Speaking with your financial advisor and your lending institution about what you can afford to borrow is the first step when looking at buying your first property. Secondly, you’ll need to consider your ability to manage the ongoing mortgage payments, keeping room in the budget for any interest rate shifts that might occur. If you’ve saved your deposit and you’re in a good financial position to be entering the property market for the first time, you’re well positioned to start shopping around for your first home.
Don’t let short-term market conditions affect your long-term decisions
Property prices rise and fall year on year over the decades, and yet, real estate is still considered to be one of the safest forms of investment over the long term. If you’re looking at buying your first home and you plan on living in the home, you won’t be weighing up property pricing values in terms of short-term investment potential.
Most first-time buyers live in their first homes for 5 to 10 years before selling and moving on to something that suits their changing circumstances: be it a bigger property, or something closer to the city and more expensive. Investing in your first home is a big financial decision and should be made with your long-term goals in mind. Where are property prices likely to be in five or ten years? It’s hard to say. But entering the property market when you’re ready means that you’ll begin building equity in your first home and within a few years, you’ll be in a position to upgrade or move on if your needs change.
The best property to buy is the one that suits your needs
With a slump in housing prices occurring in cities like Sydney and Melbourne, it might seem like a great time to purchase a home in the inner city and grab a bargain. However, when purchasing your first home, it’s important to consider the type of home that best suits your needs, and not simply trying to ‘cash in’ on falling prices in the city. Keeping in mind that most first home buyers will spend up to a decade in their first home, you’ll want to be sure that you’re choosing a property which suits your needs and the needs of your family over the next decade. Some things to consider when searching for property include:
- How big is our family and is it likely to grow in the next 5 – 10 years?
- How important are local amenities, access to schools, shops, day care and medical centres?
- How important is it to have outdoor recreational spaces, parks, etc. in the vicinity?
- Would a house or an apartment better suit our needs?
- Do we have pets to consider, or will we be looking to add pets to the family in the future?
- How important is the surrounding community and neighbourhood to us?
- Would a newly built property better suit our needs than an existing property?
Building your own home
Despite declining property values in many major cities, buying property in inner-city suburbs can still be unaffordable for some. House and land packages in popular outer regions like Queensland’s Logan Council, South Western Sydney and Melbourne’s West offer an affordable alternative and come packed with added bonuses you simply won’t find in the city, including landscaped gardens, high speed internet ready homes, and communities built with outdoor living and active lifestyles in mind. What’s more, building your own home means having the freedom to ensure your first home is everything you need it to be, without the hassle of ongoing repair and maintenance costs.
If you’re looking at buying your first home, speak with one of our friendly team at Villa World today and let us help you find your dream first home.