In today’s market, many potential first home buyers and investors are questioning the reasons to buy property, they are worried about high interest rates and inflation. However, waiting for the ‘perfect’ moment could be a significant misstep. At Teach Me About Property we encourage our students to avoid “timing the market” and instead get onto the property ladder as soon as possible and spend more time-IN the market. Here’s why jumping into the property market now, instead of waiting, might be your smartest move.
1. Outrun the Inflation Race
Inflation is a tricky beast. As prices rise, so does the cost of living, but waiting for inflation to settle might mean missing out on valuable opportunities. When you invest in property now, you’re essentially locking in today’s prices. As inflation continues, the value of your property is likely to increase, essentially allowing you to ride the wave of the market rather than being swamped by it.
2. Interest Rates May Not Be Your Enemy
Yes, high interest rates can be intimidating. But here’s a little-known fact: they often coincide with a more balanced housing market. This means you might have better negotiating power and a wider selection of properties. Plus, interest rates fluctuate. As they look set to drop in the near future, you can benefit from lower repayments on property prices that will have risen significantly.
3. Price Increases Wait for No One
Remember, by the time you read about soaring property prices in the Daily Mail or hear about them from your Uber driver, it’s probably too late. The market moves quickly, and waiting for the perfect moment often means missing out on reasonable prices. Buying now lets you get ahead of the curve.
4. Building Equity Over Time
Owning property isn’t just about having a place to live; it’s about building wealth over time. The sooner you enter the market, the quicker you start building equity. As your property’s value increases, so does your wealth. This equity can be incredibly useful down the line, whether for refinancing, investing, or as a financial safety net.
5. The Psychological Benefit
Lastly, let’s not underestimate the psychological benefit of buying property. There’s a sense of security and accomplishment that comes with owning your own home. It’s a tangible asset, a place to call your own, and a step towards financial independence. While the market might have its ups and downs, the emotional value of home ownership remains constant.
While the property market can be intimidating with its ever-changing interest rates and inflation fears, waiting for the ‘right’ time often means missing out on potential gains. Buying property now allows you to capitalise on current prices, build equity, and secure a piece of the future. Remember, the best time to plant a tree was 20 years ago; the second best time is now. Don’t let hesitation hold you back from your property dreams, start your journey today with Teach Me About Property.
