One of the most common questions coming from buyers right now is if they should put a hold on their property purchase and wait until the Brisbane property market 'crashes' or slows down. What do our experts think? Read on to find out.
The first and most important thing to acknowledge, is that no one knows when the ‘boom’ will be over, making it near impossible to know when to wait for. In saying that, the only factor we can see impacting the pace of the market is a rise in interest rates, which will inevitably happen.
The outlook for the next 12 months and beyond is that Brisbane property prices will continue to rise, unless of course there is an extraordinary black swan event. Essentially, this means that the longer you wait to buy a property, the more you will pay.
The truth for buyers in today's market is that they are going to have to pay a premium for a property. Whether or not this matters, depends on how long you intend to own the property.
If you are buying a family home that you intend to live in for the next 20 years, then paying a premium today is not going to matter in the long run, as long as you can afford the loan, of course. Prices considered premium today will look like excellent value in 20 years’ time. When your outlook is that far ahead, you should feel more comfortable paying a premium today.
If you are a buyer in today's market, it is natural to be starting to feel defeated and fatigued from watching the hot and competitive market we have experienced in 2021, and rest assured you are not alone.
There is a variety of things you can do to put yourself in the best possible position to buy in this market. If you’re considering putting your property purchase on hold, consider the following:
- If you are set on a particular suburb but houses are becoming out of budget, why not consider a unit or townhouse? Demand is only going to become stronger as more people are forced to consider these as a purchase option. Where there’s demand, there’s price increases, so the sooner you can secure one, the better.
- If location isn’t your highest priority, consider purchasing further away from the CBD where you can purchase larger, family homes for a more affordable price. With many now being able to work from home, the long-held priority of buying a home close to the CBD has lessened.
- Even with talk of values decreasing in the years to come, its minor compared the elevated levels of growth the market has recently experienced. Remember, if property price growth does begin to slow down, they are still going to be higher than they are today. If you find the right property and it ticks most of your boxes (remember, no property ticks them all) then put your best foot forward and buy it!
Though it might be difficult to see now, a property market that is growing is good news. The forecast for property in Brisbane growth, so buying a property sooner will end up saving you money in the long term.
This article was originally published in Place Insights: Property Market Insights from Brisbane's Real Estate Agent. Follow the link below to access more content like this and receive it directly to your inbox on a monthly basis.