First Time Home Buyers: Is It Wise To Get That Home Loan Now?
Data revealed that while the recent pandemic has left many industries shaken-even pushing some businesses to close down-housing industry remained sturdy, at least this time. In fact, a recent study from the University of Melbourne showed that the housing market was “slow to react” to the negative impact of the pandemic.
Lower Price Predicted
The report projected that across Australia, home prices slashed at 4.4% this second quarter of 2020. This leaves most homebuyers, specifically, at an advantageous point should they decide to purchase a property amid this global chaos.
The report added that the national price drop average is likely to peg at 2.3% this third quarter of 2020. Although some areas have more pronounced price drops such that of Melbourne and Perth at 5.5% and 2.3% in the second and third quarters, respectively.
What’s in it for you?
Homebuyers in particular are seen to benefit from this seemingly “favorable” market condition, as far as buying a house is concerned. The report, however, noted that their model is based only on available data and there must be some nuances that weren’t taken into account.
It is worth noting that the report does not explicitly and outrightly recommend immediately purchasing a home at this time. Those who are looking at buying a property during high times of uncertainties should proceed with precaution.
Seeking a broker’s help
During this time of high uncertainty, jumping right away and buying that dream house hastily is risky. It is best to talk with your mortgage broker and discuss whether the projected price drop is indeed reflected in the field.
You need to discuss with your broker what are the possible scenarios should you decide to purchase a house this pandemic. How about other fees? Does the government provide some types of economic relief to new or existing mortgages in a form of lowered interest rates or waiving some fees?
Proceed with caution
While figures seem a little encouraging for home buyers, you should still be very cautious in your decisions. When to actually buy during the pandemic? Firstly, you’re better off assisted by a broker, especially this highly volatile period. Secondly, you have to be very attentive on Government projections and advisories--these can help you decide more rationally.