15 February, 2020 / Category: Blog
Put your hand up if you’ve heard this lately.
Nobody can ‘time’ the market. Even us! This isn’t the same as waiting for Black Friday prices or a Flash Sale. You shouldn’t wait for prices to flatten or for the property market to crash or for real estate prices because waiting for this to happen will come at an even heftier price-tag.
By waiting you are locking yourself out of Melbourne’s best available real estate being bought up by everyone else or potentially the property that is perfect for you and your family.
The truth is that waiting to buy is counterproductive. Of course, we’d say that you might say to yourself but let’s look at the facts. Wages aren’t increasing, and haven’t increased significantly now, to match with the rate of property values.
Getting loans has become harder. This is good in part due to the bad and misleading behaviour by banks during the Royal Commission, but worse for you because lending will continue to tighten, making it harder to get loans when they are right for you.
As of June 2019, Melbourne’s median price range is $855,428. That’s an increase of 4.1% up from last quarter, and per our last blog on this topic (when Melbourne’s median price range was $826,000) it has increased by 3.56% since 2017. This is a new record high. Meanwhile, wage increases have risen by an average of 2.3% year on year across Australia. Costs have increased by almost $30,000 for the property buyer who is still waiting and betting on a market collapse.
Despite house prices dropping in the past year or so, the longer you wait, the harder it will be to gather the resources and finances needed to achieve homeownership.
If housing prices increase by a further 11-15% based on the predictions set out in the Housing Boom and Bust report the Melbourne then funds required to purchase a home will increase by $14,773 per purchaser based on the above assumptions.
When Infolio opened in 2009 during the Global Financial Crisis, housing prices did not drop – they simply flattened. Our experience, and with Infolio growing and proving successful during that time, has proven to us that if you are buying to hold for the long-term on that property, you can ride out any market downturn.
Move beyond baseless online chatter and poorly informed word of mouth and listen to those in-the-actual-know. If you want to get into the property market, there is never a better time than now or soon – before you are priced out of it. Can you really afford not to?