|Many things were put on pause in 2020 as the coronavirus hit countries all over the world. Even schools and work were suspended for the time being and were forced to adjust and think of ways to operate even while in quarantine or isolation. You may also have encountered several cancelled plans with regards to travel and leisure.
With all the uncertainties clouding us these days, it’s understandable that you might have even thought of putting your investments plans on hold, including buying your first property. Experts told us to save up, especially during the rainy days and this is one of those special occasions.
But now that restrictions have eased, and several vaccines against the virus are now present, is 2021 a good year to invest in a new house? Think about buying your dream home, but first let’s hear it from the experts.
Good indicator #1: Low mortgage rates
In an interview with HuffPost, a real estate developer’s marketing director Susan Miguel said those looking to buy a new home this year would face unique opportunities such as low mortgage rates. Based on Mozo’s data, Australia’s average fixed mortgage rate is at 2.35% per annum. The average variable rate is a bit higher, at 3.31%.
Good indicator #2: Special deals
Aside from low mortgage rates, many home builders and developers offer buyers special deals to get through the fierce competition expected in the property space in 2021. These special deals may include cashback offers, waivers on closing costs or insurance during the first year, discounted prices, appliance inclusions or upgrades, mortgage modifications and more. The possibilities are endless as property holders do their best to lure homebuyers back into the market.
Something to think through: home prices expected to rise
When buying a new home, timing is always important. According to CoreLogic Head of Research Eliza Owen, she expects to see a continued increase in home prices in the first half of 2021. So if you’re thinking of buying a new home this year, you might want to take advantage of lower house pricing we’re experiencing now. Or better yet, if you’ve found a property that you like at a reasonable price now, you might consider buying it now if you’re ready before its value begins to soar.
A different process: a socially-distanced home buying experience
In the past years, the home buying journey included many meetings with lenders, agents or sellers, a tour of multiple properties that you might like and more. But amid the COVID-19 pandemic, these things turned upside down, and you might experience an entirely different process.
While social distancing regulations might have eased depending on the location, experts predict that more real estate lenders, agents and sellers will still rely on online means to facilitate the home buying process. This means you may have to settle for virtual home tours and meetings, for now, to keep everyone safe. If you’re the type who wants to see everything in person, then you might need to arrange a particular set up with your realtor or agent.
2021 looks like a promising year to buy a home with relatively lower mortgage rates and home pricing on top of the special deals. However, with the pandemic still around, evaluate first the stability of your income sources and your ability to pay for your property despite anything unexpected that might happen. Once you’ve settled that, consider getting expert advice tailored-fit to your unique situation.
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