COVID has seen some people’s fortunes turn upside-down, while others, driven by their own unique circumstances, seem to be doing better than ever. And in the property market, things have also been on the move. But…is now the right time to buy? Should you sell?
What about purchasing investment property? With the combination of interest rates being at a historic low and the property market being very competitive, the reality is that buyers can still reach their property-buying goals.
The benefits of buying with low interest rates
Lower interest rates on a mortgage mean that, with some careful budgeting, loans can be paid off faster to save more money.
Of course, what comes down can definitely go back up, so don’t over-extend and do have a repayment plan based on realistic number-crunching and a savings safety net to tide you over, in case of tough times ahead.
Will it take long to get a loan?
Depending on the financial institution you work with, some delays may occur. Some lenders have been hit by the impact of COVID on international processing centres, or have had staff on reduced capacity, while many other lenders have been stretched with huge numbers of mortgage applications. By using a mortgage broker in Melbourne with access to multiple lenders, you have a more positive chance of finding one that can work with you within the time-frame that matters to you.
Do some banks offer cashbacks?
Some banks or lenders have been offering refinance, or cash-back rebates, to add a competitive advantage. Talk to your broker to see what might be available for your circumstances, and if it offers value.
Tips for property investors
Before you apply for a mortgage for an investment property you may consider buying, it is prudent to do as much research as possible, in order to find a property that suits your budget – and the plans you have for building greater wealth.
Worrying about whether now is a good time to buy will always come with an accompanying list of potential pros and cons, but, while you can’t predict the future, you can take steps to ensure your own finances are in the best possible position to help you weather any future storm.
Some strategic ways to do that include:
- Make the most of very low interest rates
- Understand what equity you may already have in another property – and learn about the power of leverage
- Negotiate deferrals on loan repayments, if needed
- Access hardship options
- Seek tailored, professional financial planning advice to explore ways to build your wealth
To ensure your finances are in order before buying an investment property, contact our team at Lending Specialists.
Lending Specialists is the leading mortgage broker in Melbourne with over 40 years of experience in home loans, business loans, equipment finance loan, and self-managed super fund loan. Our clients come from all across Melbourne, including Ringwood, Ferntree Gully, Rowville, Mitcham, Boronia, Wantirna, Scoresby, Knoxfield, Bayswater, Vermont, Croydon, Nunawading and more.