What is the Best Time to Buy a Home in Australia?

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What is the Best Time to Buy a Home in
Australia?
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Buying a property is one of the biggest decisions
you will ever make but when do you even take
this decision? When is the best time to buy a
home in Australia? Is it during the quite winter
days or during the spring rush or during the
Christmas lull? Choosing the right time is like
betting over thousands of extra dollars. So, this
choice must be made wisely. Let us find out how
to know what is the best time to buy a
home. Well, there are a number of factors that
help in making such a crucial decision. Personal,
financial, and market circumstances are major
elements that help drive the big decision.
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Largest Investment
Buying a home in Australia, or for that matter
anywhere in the world is one of the largest
investments most people make in their lifetime.
But the decision only pays in the long-run if it
is taken at the right time. You will be able to
select the optimum property only by being at the
right time, with the right real estate agent in
Cranbourne. The home you buy will also depend on
your budget, property preference, long-term
investment goals, and life circumstances. Other
than these, there are other fundamental factors
that must be considered for all prospective
buyers because they plan their purchasing
strategy. Here are the factors you must consider
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It is Not About Timing the Market
Investing in Australian residential property is
not like trading the stocks. Some people who
invest in the stock market try to time the
market which means to buy undervalued stocks
which they think will rise in the short-term.
Then, they sell them at the first sign of the
price rise. On the other hands, buying a
property is a long-term investment. Why? Because
you get to see the biggest gains with time. The
longer you hold the property, you get to see the
returns for a long time.
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Unlike Australian Property, Stocks Fluctuate
Daily
The Australian stock market can fluctuate wildly
on a daily basis. Residential property in
Australia has been through slumps over the past
decades. The real estate market has been on a
strong long-term growth trajectory overall. As
per the data by CoreLogic, robust property market
conditions from 1993 to 2018 saw a median house
value rising by 412 or 460,000. The best part
is this long-term trajectory does not really seem
to have impacted by COVID-19. However,
Australian housing market value had a small dip
in 2020, property values have risen by 12.2 in
the first six months of 2021. If you decide to
hop at a shorter-term market movement, these may
prove to be unhelpful. So, the best time to buy
a home is completely based on the decision of a
buyer. On his personal situation and needs.
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Financial Timing is Important
What would you even buy a house with if your
finances are not in order. Before you take such a
big plunge, make sure your budget and finances
are in-line. Home ownership definitely brings
huge financial rewards over long-term. But do not
forget that these also present risks for those
who overstretch themselves financially. When you
have decided to buy a property, do not borrow
beyond your means. Also ensure that you have
reliable income streams so that you are able to
service the loan for a long period. Financial
stability comes after a certain time in life. For
instance, the younger buyers may have to wait
for little longer before they take a big leap
into the real estate market, like if you are a
young home buyer, you may have to wait till your
pay rises, or you get a job permanency. On the
other hand, those who are early on in their
career may have to determine if the reduced
income streams are enough to support the
different costs (Hidden costs) that are involved
in buying a home.
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Time for Preparation
Giving yourself time to research is another key
factor that will help you in taking a wise
decision. Due diligence and in-depth research are
two elements that are duly needed before making
such a big decision. You will have to give
yourself an ample time to prepare. Also, it may
take some time to find a property in your price
range either because of fierce competition or
for good-quality homes in sought-after areas. If
it is a rising market, buyers will be able to
accurately assess the rising value of the
property. Through that, they will be able to
ensure that they are not overpaying, or missing
out by going too less on the price.
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Methods To Assess Value of The Property
Typically, there are three methods by which the
value of property is assessed. Capitalization
Summation Direct comparison approach After
identifying the property, you want, the next step
is to do property viewings, conduct building
inspections, conveyancing, and make financial
arrangements. In strong markets, it is quite
common for buyers to take multiple attempts
before buying their eventual property. So, it is
suggested not to make rash decisions based on
fear of missing out (FOMO) on a good
property. As mentioned above, Australian property
market has been on a strong upward trajectory for
decades and will remain the same for a long time
to come. If you do find a suitable property in
your price range, be decisive because good
properties are hard to find. Also, these are
just a once in a lifetime opportunity.
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Demand for Property Low- What to Do?

• Ignore the market conditions for a moment and
  look purely at the seasonal nature of property
  transactions in Australia.
• As per CoreLogics (RP Data) between January 2000
  and December 2009, that most property sales
  occurred in March and May.
• This is the time when buyers are the most active.
• So, if you are considering to buy property, you
  may wish to avoid this period of high demand,
  because the competition seems to be at the
  highest.

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Excess in Supply of Property What to Do?
Demand dynamics are really important but supply
market should not be ignored either. Ideally you
would want to purchase a property when the supply
of properties is high relative to the demand
from buyers. Exactly this is what you would be
looking forward to a buyers market a period
when property supply exceeds the demand.
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Do not Ignore Current Market Dynamics Look where
the real estate market stands. Understand the
supply versus demand market and evaluate the
current market conditions. If you believe that
the macro-economic landscape will not worsen
over medium to long-term, now may be a right time
to buy property. Is Winter a Good Time? Yes,
winter is also a good time to buy a home or a
property. Peter Rossini, Senior Lecturer at the
University South Australia found in is his
academic study that properties sell for
approximately 1 less in winter than the other
seasons. Some say you should buy when others
dont. This is fairly intuitive though. During
winters and Christmas, if you decide to sell the
property, it must either be urgent or must have
had the property in the market for long time
(Just an assumption). About Broader Market? You
should definitely consider the broader property
market cycle and economic outlook when deciding
to buy a property. If you are someone who is
looking forward to buying or selling in
Cranbourne, Hampton Park, Lynbrook, Lyndhurst or
nearby suburbs, contact the team of the best
real estate agents, Jasmine Real Estate,
Melbourne.
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Get In Touch
PO Box 137 Lynbrook Victoria 0425843786 carlton_at_
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