If you are delaying the purchase of your own home because you’re waiting for interest rates to drop back to the all-time lows of the post-lockdown, you’re wasting valuable time.
Interest rates might not be coming down quickly or be heading to the all-time lows that we saw coming out of the pandemic, but they are expected to come down slowly during the next year to more modest levels.
Trusted and respected independent economist Tony Alexander outlines his view on interest rates in his latest commentary: https://www.tonyalexander.nz/
For those who want to buy their own home, the question then remains… if you are waiting for interest rates to drop, why even bother?
The overall effect on how much you will be paying on your mortgage repayments is likely to be small, and by delaying buying your own home, you are giving up the up-side benefits of home ownership right now.
So… why are you worrying about picking exactly the right time to get into the market?
If you wait another year…
- How much rent are you going to pay over that year?
- How much of someone else’s mortgage are you going to pay off?
- What kind of renovations could you have completed on your own home during that year?
- Are you delaying having children until you own your own home?
- Are you delaying changing jobs/career until you own your own home?
- What other important life events are you putting off until you own your own home?
So… why are you waiting?
If you’d like to discuss your situation and how to get into your own home faster, reply to this email.
Tim Oliver is a Financial Adviser and director of First Mortgages NZ Ltd and Oliver Financial Planning Ltd. The information provided in this article is general in nature and is not intended to constitute advice to any person.