With inflation and interest rates slowly starting to stabilise, things are looking up for property buyers in 2024. If you’re thinking of getting in on the action, these are things you’ll need to think about to make the most of the opportunities currently available.
Budget Wisely
The affordability outlook for 2024 is currently positive with a potential interest rate decrease expected mid-year. As a result, buyers who act quickly stand to benefit from today’s low property prices as well as more affordable bond repayments just over the horizon.
It is a great time to get into the market, but don’t be tempted to overextend or rely on the interest rate decreasing to maintain your affordability, Budget wisely, buy within your affordability level, and save for as big a deposit as possible. You’ll not only get a better finance offer, but you’ll also give your property investment a much more secure financial foundation to weather whatever the future holds.
Polish Your Financial Profile.
Other ways to improve your property finance outlook include paying off as many small debts and monthly expenses as possible and closing any unnecessary store accounts and credit cards.
If you have any black marks on your credit record, the earlier you address them the better. It takes time to rehabilitate a credit score and build the kind of responsible history that lenders are looking for in their bond applicants.
The good news is, buyers with a strong credit history could see very motivated lenders competing against each other to finance their property purchase.
Know The Market
Market conditions are currently very much in favor of buyers, that means for now, buyers have the upper hand in terms of purchase timing and price negotiations. However, these conditions won’t last forever.
We are expecting demand to increase in 2024, which means buyers will be facing a bit more competition, as such it can be useful to speak to a property professional in your area to get a feel for how fast properties are moving, what prices they’re achieving, and how best to maximize your chances of a successful offer.
Do The Prep
To give yourself the best chance of having an offer accepted once you hit the market, getting prequalified for a bond, and prioritizing the sale of your current property if you have one.
Until demand picks up, sales are still going to be a little sluggish, you’ll have a better chance of having an offer accepted if the sellers don’t need to worry about unsuccessful bond applications or suspensive condition holding up their own transfer for months on end.”
These are the questions first-time buyers must ask realtors:
1. Ask the realtor for a CMA (Comparative Market Analysis) of the property and ask the agent to explain how the value of the property was determined.
2. Ask the realtor about patent defects. Did the seller disclose everything? Make sure that everything is specified in the sales agreement.
3. Ask whether the plans of the property are approved and if there is an undertaking by the seller to provide these plans.
4. Ask if there are any hidden costs, such as the replacement of equipment in the property which is not included in the sale.
5. Ask what exactly is included and not included in the sale and if anything has to be removed and replaced by the seller and ask for that to be stipulated in the sales agreement.
Think through your needs
Also recommend approaching the market with a clear plan of action around what you’re looking for, and what you’re willing to compromise on.
It Is unusual to find a property that ticks all the boxes unless you’re building from scratch, having a list of your must-haves, nice-to-haves and absolute deal-breakers is a great way to focus your property search and reduce the risk of impulsive decisions leading to buyers’ remorse down the line.
Pro tip: Remember, property is a long-term investment. Make sure your list of requirements extends beyond your current needs to consider your future lifestyle expectations as well.
