Sales are in the air in spring
THE start of spring usually brings out For Sale signs as property owners capitalise on warmer weather and gardens that look their best, to sell their place.
Spring 2016 is also accompanied by some of the lowest home loan interest rates seen, and buying activity is expected to be lively.
So if you are home hunting, it pays to be prepared.
The latest CoreLogic figures show Sydney remains the most expensive property market with a median home value of $775,000 — far higher than Melbourne ($585,000) and Canberra ($561,000).
Prices have fallen over the past year in Darwin and Perth, taking median values down to $497,500 and $490,000.
Brisbane’s median is $477,500, while Adelaide ($417,500) and Hobart ($327,800) are Australia’s most affordable state capitals.
What’s especially interesting about the Sydney and Melbourne housing markets is the high level of recent price gains.
As a guide, the Australian National University estimates since 2012, Sydney home values have risen 12.1 per cent annually, yet incomes have grown 4.5 per cent a year.
I am a fan of home ownership but if you plan on entering the property market this spring, it is important to crunch some numbers.
Living comfortably as a homeowner means more than being able to afford your loan repayments.
You still need to be able to achieve other personal goals like starting a family, enjoying decent leisure activities and to be able to enter retirement as close to debt-free as possible.
At the heart of this approach is having the discipline to stick to a sensible household budget.
It also helps to avoid borrowing up to the maximum. This way you are more likely to have cash in reserve to pay a little extra off your loan.
When you find the place that is right for you, it makes good sense to take out income protection insurance or review your level of cover.
Yes, it is another cost, however, if you cannot work for a lengthy period, income insurance could be the thing that lets you hold on to your new home and your lifestyle. MoneyMagazine.