Should You Buy A Property Now Or Wait Until Values Increase?

Even though people are talking about substantial house valuation increases across Perth, you should seek the advice of your mortgage broker so you can be ready to put a mortgage in place whenever you find the right property to buy. We’re a mortgage broker in Rockingham who can help you with your needs.

Most people would suggest that property prices are unlikely to fall in the near future, so purchasing a property now looks to be a good idea.
Housing Property

One Report Suggests A 22% Increase over the Next Three Years

BIS Shrapnel recently released a report which suggested that house prices would rise in value by 22% over the next three years. To put this into real dollars, that would mean that the median house price, which is currently around $475,000, would move up to $580,000 in 2015. This equates to an increase of around 7% a year for the next three years. When you’re considering a new home loan this might lead you to believe that property is going to be a good investment over the short term.

The Real Estate Institute of Western Australia (REIWA) believes that the report exaggerates future increases and insists that growth of around 11% over the three years is more likely.

To judge whether this is a good time to buy a property is quite difficult and it is dangerous to look at a property purely in terms of making money. Most people don’t buy a property and expect to move in three or four years and take the benefits of the property’s increased value, because your home is a place to live and should be viewed as such, not as an investment.

House Value Increases Cannot Be Guaranteed

Of course, estimates for future house value increases are not always particularly accurate as changes to the local market, the national market and global finances can greatly affect the value of your property.

It is easier to look at the difference between demand and supply to see how many people are looking to purchase a property and how quickly those properties are selling, to assess whether property prices look to remain stable or increase as suggested.

As the cost of renting remains high and rental properties in Perth are in short supply, more people will look to buy a property, particularly if they are feeling stability in their employment, balanced with the expectation that property prices won’t be falling in the immediate future.

Your home loans specialist in Rockingham can show you how house prices have changed in your price zone, the neighbourhood where you wish to live, and by the numbers of properties that are available and have been sold in your price bracket.

If you believe that you are considering purchasing a property as somewhere to live and not entirely as an investment, now could be a very good time to buy, and whatever house value growth arrives over the next 3 to 4 years will be reflected in any other property you wish to upsize or downsize to.