Why your property dreams shouldn’t be cancelled

If you were waiting to get into the property market in ‘the year that wasn’t’ (aka 2020), here’s what you need to know about feeling real-estate-confident in 2021. 

Last year was uncertain in more ways than one — and that included the property market. However, thanks to a number of financial incentives, 2021 could present the very opportunities you thought were ‘cancelled’ in 2020. We got the lowdown from REA’s executive manager of economic research, Cameron Kusher.

“The main reason it’s a good time to buy is that interest rates are low and they may stay low for a number of years,” Kusher starts.

“If you’re wanting to buy a brand new property, there’s also government incentives and state and government stimulus that make it easier to purchase your first home.”

Here’s what you should consider about buying a property this year, depending on your circumstances.

If you’re ready to buy

So, you’re ready to make the commitment but you don’t know where to start? The very first stop should be chatting to a home loan specialist.

Vitally, don’t forget to ask about first home buyer schemes available so you can best weigh-up your options.

While some first home buyer grants require you to build or buy a brand new home – and live in it for a period of time – this may not the best option for your lifestyle.

Having a centrally located home may be more important to you than a grant. Picture: realestate.com.au/sold

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Kusher says it all depends on the individual.

“It’s really a matter of taste and where you want to live,” he says. “There are a lot of incentives for building brand new homes, which make it attractive, but you’re probably going to be living further away from the city, potentially facing a longer commute and also sacrificing those inner city amenities.”

If you’d rather buy an existing property and sacrifice a first home buyer grant, don’t forget there may still be other incentives on offer. Transfer duty exemptions or concessions are available in most states.

Finally, don’t discount shopping around in other areas. If you’re not afraid to branch out, you may find your dream home in another city or state that offers more bang for buck.

If you’re not ready to buy

There are those who are simply not in a position to buy. However, many Aussies are in a good position — they just don’t know it or haven’t made the commitment yet.

“At the moment, given all the incentives that are out there, it’s worth having a discussion and seeing how far your finances could stretch,” Kusher encourages. If you’re flexible about where you can live, you may find yourself closer than you thought.

You could get the brand new, two-bedroom, CBD apartment of your dreams in Adelaide for the same price as a home two hours out of Sydney. Picture: realestate.com.au/buy

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“Once you actually start doing the sums, you might be surprised at where you could potentially afford to live compared to what you’re paying in rent. It may work out not that much different or, depending on where you want to buy, it may end up being cheaper than your rent.”

If you’re wondering whether or not you’re in a position to buy, chat to a home loan specialist to explore your options.

Still feeling cautious? That’s OK. There’s plenty of time left in the year. If you prefer to take a few more months to get more savings under your belt, it doesn’t mean those property dreams are cancelled – simply postponed. 2021 may still be the year you buy property.

It’s vital to speak to your home loan specialist ASAP to set you on the right path. You’ll be amazed how much quicker you can save when there’s a timeline in place.

Since 1995, RAMS has helped hundreds of thousands of Australians realise the Great Australian Dream of owning their own home. Our national network of dedicated home loan specialists provide guidance and advice throughout the home buying journey. Find out more about our range of flexible home loan options at RAMS.

This information is general in nature and has been prepared without taking your objectives, needs and overall financial situation into account. For this reason, you should consider the appropriateness of the information to your own circumstances and, if necessary, seek appropriate professional advice. RAMS Financial Group Pty Ltd ABN 30 105 207 538 AR 405465 Australian credit licence 388065. Credit provider and issuer of RAMS deposit products: Westpac Banking Corporation ABN 33 007 457 141 AFSL and Australian credit licence 233714.