House prices are tipped to rise 15% and days on market at sitting at just 17, but what does that mean if you are looking to buy?
From a finance point of view with competition rising, you should ensure you have everything in place to make a strong offer. In today’s market, many buyers are cash ready with no subject to sale offers making them more attractive and less risk for sellers.
With the latest statistics released from reiwa.com.au showing the average days on market are sitting at just 17 days the lowest since 2006 and suggesting prices in WA are set to rise 15%, competition is set to get even greater.
So here are our top tips for ensuring you are in a position of strength going into find your new home or investment and what you need to do.
Tip 1.
Speak to a broker early on in the process, once you have made the decision to buy, find out what your borrowing capacity is for responsible lending to ensure you can maintain the lifestyle you want now and in the future.
Tip 2.
Get your pre-approval set in place. A loan pre-approval means you have been approved by a particular lender for a specific type of loan up to a specific amount, and can secure your finances before finalising an upcoming property purchase.
Why loan pre-approvals?
- Loan pre-approval gives you an idea of your buying limit and makes you eligible to receive financing.
- Pre-approvals can expedite the application process once you apply for the loan.
- They can also provide you with assurance and confidence before making the final purchase.
A loan pre-approval shows your seriousness about making a purchase, which makes negotiations with vendors and real estate agents easier. Most real estate agents prefer going forward with a buyer who already has a pre-approval.
If you are buying at auction this is also what you need to have in place prior to bidding to ensure you can comfortably afford the property. Your broker will be able to guide you through the process and gain the necessary paperwork for writing your offer or attending the auction. A pre-approval also lasts for approx. 3 - 6 months which gives you time to search for your new home.
Tip 3.
If you need to sell to buy, speak to a local real estate agent on the market value for your home and area, and set the wheels in motion to get ready for sale. Also make contact with your mortgage broker, work with them to identify what you need to get for your current home and what your borrowing capacity is for your new home on a best and worst case scenario. This will alleviate financial pressure.
Tip 4.
Don’t be put off by a home that needs renovations, it is best account for these provisions early on and you can ask your broker to help you with a renovation loan to make sure you can achieve your dream.
Wherever you find yourself in the current property market, being prepared and informed is the best way to ensure you can secure your future dreams through property purchasing. Our team of experienced mortgage brokers are on hand to answer any questions you may have along the way. To speak to a broker confidentially, reach out