Buyer tip #3 – there is never a perfect time to buy

Or put another way – trying to play the market is not for the average home buyer.

If you really want to know there is a point in any cycle – a single transaction that is at the lowest point of a market cycle, that is the property everyone wants to buy, just as there is a single transaction that is the highest point of a market cycle, that is the property everyone wants to sell. However these facts emerge many months after the turning point of a cycle. If you are lucky enough to know these points better than another buyer then you have the luck to win Lotto week after week!

The important thing is to stand back from the graphs and the belief that any of us know when the downward stage of the graph will bottom out and turn into an increasing upward gradient. Instead ask yourself this simple question – “Will this house I am interested in buying” -

(1) suit your needs in 5 or 10 years time?

(2) will I be able to affordable the mortgage payments in 1 years time / 3 years time or even 10 years time; will projected mortgage rate increases (based on the low level of current rates) match my salary expectations in the future?

(3) do you think the selling price in 5 or 10 years time will be worth more than the mortgage you are taking on to buy the house today – with the benefits of mortgage repayment.

If the answer to these 3 questions is yes, yes, yes, then you are well positioned to enter the market – two out of three, you need to think carefully.