As a first home buyer, choosing the right time to buy property can be challenging.
Based on recent predictions for Newcastle, you might consider purchasing sooner rather than later.
The QBE Australian Housing Outlook 2017-2020 was released yesterday, providing an outlook for the performance of the residential market across Australia and including a Newcastle and Hunter Region focus.
It predicts as positive increase in median house prices of 12% over the next three years.
As a mortgage broker I’ve helped many New Home Buyers with their property purchases, and the dilemma they often face is whether or not to take out mortgage insurance and enter the market now, or take some extra years to enter the market when they’ve saved more on their deposit.
In a market where property prices are expected to stabilise or decline the wait may not be a costly one. However in a market such as Newcastle where property prices are expected to increase, delaying your new home property purchase could possibly put home ownership out of your reach.
As the QBE report states:
The redevelopment of the Newcastle Interchange as well as the light rail line will encourage job creation and further investment in the area, and the outlook for the Hunter region economy remains positive.
Price momentum is forecast to carry into 2017/18, with house prices projected to grow 7% before easing in the two years to 2019/20 in line with the Sydney market. The median house price at June 2017 of $568,700 is forecast to increase a cumulative 12% to $635,000 at June 2020.
As a mortgage broker who’s part of a National network I’m pleased to see that the local forecast for Newcastle demonstrates that the area offers first home buyers an affordable option against the Sydney market. On the other hand, it’s clear that house prices will be on the rise, and that’s information new home buyers should take into consideration when choosing the right time to buy their new home.
You can read the full Australian Housing Outlook 2017-2020 here
Margaret Godfrey, is a mortgage broker in Newcastle. If you are thinking about buying your first home and you are looking for someone to guide you through the process the please email me email@example.com or call me on 0451 471 061 and I would be happy to provide an obligation free consultation.