5 Common Worries Buyers Have in Today's Market.
1. Getting Finance
Buyers often worry about how much they can borrow and whether their home loan will be approved. So, lets ease these concerns and start with a borrowing power calculator or home loan calculator to get an estimate.
Then, consult an experienced mortgage broker who can guide you through the process because they can offer access to multiple lenders. Applying for ‘pre-approval’ or ‘conditional approval’ can also provides peace of mind because it indicates the amount you’re likely to be approved for, provided you can prove your income and expenses.
2. Interest Rate Impact
The recent hikes in interest rates have many buyers, especially first-timers or those upsizing, worried about their mortgage repayments and budgets.
Rates have risen from historic lows of around 2% in 2021 to over 6.5% now. To mitigate the uncertainty of future rate increases, consider fixing all or part of your home loan, providing stability and peace of mind.
3. Overpaying
The fear of overpaying is common, whether buying through auction, private treaty, expressions of interest, or off-market.
As a buyer it is important to remember and understand that property prices are driven by supply and demand, so a home’s value is what someone is willing to pay. Researching recent sales of similar properties in comparable areas can help you gauge a property’s value.
In a rising market, you might have to pay slightly more than recent sales prices, especially if those sales occurred some time ago. A buyer’s agent can provide valuable guidance on property value and negotiate on your behalf, reducing the risk of overpaying.
4. Structural or Other Property Issues
Uncovering hidden issues in a property is a significant concern due to rising construction costs and high demand for trades so engaging a reputable building and pest inspector is crucial to identifying potential problems that could incur costs down the line that you may not be aware of while making the purchase. (B.B.A does this as part of Due Diligence )
Understanding the differences between strata and community title apartments and their implications is also important. Seeking advice from experts like solicitors or conveyancers can also provide clarity and prevent unexpected issues.
5. Long-Term Investment Value
Buyers often worry about the long-term value of their property investment. Property in areas like Sydney’s East has historically been a sound investment, with prices expected to continue rising despite short-term fluctuations.
Even if you feel you’re overpaying slightly now, the likelihood is that it won’t matter much in the long run. Engaging a buyer’s agent can provide insights into the potential growth of different areas, helping you make a wise investment.