The right time to buy is now
Finding the right home can be a challenge at any time. But buying a home in the right market at the right time is less important than the period you intend to own it. With interest rates rising, it’s no surprise that some buyers might decide to wait before taking the plunge into the housing market.
Much can be read, digested, and speculated regarding the current property market and its values, with opinions and expectations on what it will look like over the next year or so varied. All this noise can make the prospect of buying at the perfect time an anxious decision, with the uncertainty of what the future might bring.
Kiwis, on average, own a home for seven and half years, during which time it is almost certain to increase significantly in value. Yes, currently, there are affordability challenges. General living costs alongside mortgage rates are rising, and we are also in a very competitive job market with employers looking to attract and retain talent.
“I remember purchasing my first house in St Albans for $110,000. I was very excited and still recall the emotions 25 years later,” says Golden Homes Canterbury Director Dean McGuigan.
“Maybe I paid five per cent too much, and maybe I didn’t. What I do know now is that time cures everything, and timeliness in that market did not really make a significant impact. It is the length of time I owned that freezing old house, not so much the timing of when I purchased it, that mattered the most.”
The chances of finding the perfect house, and timing the market when it is the cheapest, are very slim.
Dean’s advice: “If you can find your ideal house now, grab it.”
Dean says very few people have regretted buying a home when they have kept it for seven to 10 years. “I never have, and my parents never did. Ask around, and you will hear similar stories to mine, there are plenty of them, and I am sure you will come up with the same answer.”
Step aside from the noise, and remember, time in the market is vital, not timing the market.