Is your property plan on track, despite the recent rate rises?
It's a challenging time for property owners and those looking to purchase, especially upsizers and first-home buyers, as they determine if they have enough cash and credit to fulfil their immediate property ambitions.
Changing interest rates have made the mortgage and refinancing landscape a moveable feast across Australia in recent months.
Lenders are tending to take more time in assessing applications at the moment as they weigh up the dynamics of mortgage rate increases and their impact on property values. The days of approvals within 24 hours have pretty much disappeared. It can still happen of course, though it is now rare.
But the current market does give both sellers and buyers more time to assess their position and to make the right long-term purchase. It always pays to plan ahead, particularily with such an important decision.
Check out our top tips to help you assess whether you are ready to either make your first purchase or sell your current home and find a new property.
Rethink your research
Your research should never be a one-hit-wonder. Consistent diligence is the key while you're in buying and selling mode. Don't jump on a few websites one Saturday morning, type in a couple of searches and think “job done”. Spend time anaylsing properties similar to yours, or properties similar to what you are looking for. Become aware of the recent activity and know the market inside out, which can be time consuming so if it helps talk to a local expert such as Abode Peninsula and we can help you with the process.
Focus your attention
Study the properties that are comparable to your target property or the one you wish to sell. Any other data is misleading and irrelevant, and it can lead you into the trap of false assumptions. Keep track of your work by using a spreadsheet to record details of relevant properties, such as location, size, features, agent, price guide and auction date if applicable. There are a lot of variables throughout any sales campaign, so again it could be worth chating to a local who studies the market on a daily basis.
Call your bank or broker
If you've lined up a source for your finance, don't be afraid to ask them how the current mortgage landscape might affect you. If you engage consistently and constructively, you may uncover information on new banking products or deals. A bank or broker spends their day studying and anaylising the latest offers so they are in a great position to assist you when the time comes.
Loan options
There are an array of loans available. The most common for residential properties are variable rate, fixed rate, split-rate (a mix of fixed and variable), bridging loan, land loan, construction loan and line of credit. Don't just look at the interest rate, though. Loans come with conditions. Read the small print so you don't sign a deal you may regret later. We always recommend talking to an expert when it comes to deciding which loan is best for your circumstances, talk to a couple of brokers or banks and establish what you think is the right path from the information provided.
Call your agent
If you intend to sell and haven't had an agent make an appraisal, don't delay.
A lot of people we talk to assume they know the value of their property, but it never hurst to have a member of Abode Peninsula either validate your opinion or give differing guidance. Over-estimating the value of a property is a common seller error when a market returns to more regular patterns, and in some cases under-stimating the value can give you a pleasant surprise.
As always, the information above is general in nature, if you would like to discuss specifics or would simply like an update on where your property sits in the current market please free to get in touch. We would love to chat with you about anything Mornington Peninsula property, it is our passion and we pride ourselves on providing expert advice confidentially, and without any obligation.
