Right house, right time
Dean McGuigan from Golden Homes explains why buying a home in the right market at the right time is less important than the period of time you intend to own it.
Finding the right home can be a challenge at any time. With interest rates on the rise, 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. There are many opinions and expectations about what the values will look like over the next year or so. Buyers looking to purchase at the perfect time could find an anxious decision, not really knowing what the future might bring.
I remember purchasing my first house in St Albans for $110,000. I was very excited and still recall the emotions 25 years later. 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 for, not so much the timing of when I purchased it, that mattered the most.
The chances of you finding the perfect house, and timing the market when it is the cheapest, are very slim. My advice would be this; if you can find your ideal house now, grab it. Kiwis, on average, own a home for seven and half years, during which time it is almost certain to increase significantly in value, just like my first house.
Yes, currently there are affordability challenges, with the prices of groceries, fuel and mortgage rates on the increase, but remember, we are also in a very competitive job market with employers looking to attract and retain talent.
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.
Time in the market is vital, not timing the market.
0800 22 22 36 | goldenhomes.co.nz
