April 16, 2021

Natallia Smith
(TruWealth Advice)

Melbourne’s property market is currently in the midst of a post-lockdown boom. Financially, people want to take advantage of unprecedented low interest rates, government incentives and the sheer number of properties being advertised for sale. Emotionally, the experience of living through the Covid-19 pandemic has caused many of us to reassess our priorities and lifestyle. But it’s important to consider a number of factors before you make such a significant financial decision.

Plan and prepare before buying your next property

Make a plan

Think about everything that is important to you and the lifestyle you want to lead. As we well know, the future can be unpredictable. Be aware and create a plan to help you build and maintain a financially secure future.

Think short and long-term

Where do you want to live? Now? In 10-15 years? Children become teenagers, then adults, very quickly. Proximity to childcare, schools, or being close to family may be important factors which dictate where you will look for the perfect home. Or maybe you want to purchase a long-term investment. Think about what will work both now and in the future, then do the research before you begin your property search.

Sea/Tree change

The idea of a lifestyle change can be super appealing, particularly if you’ve experienced a change in priorities during 2020/21. Visit the area you’re considering. Speak to real estate agents, talk to people who live there and get a feel for the community. Think ahead. Once you’ve moved, it’s not always easy or financially effective to move back.

Seriously examine the debt

Can you truly afford an increased mortgage? What will happen when interest rates rise again? Debt can be good and effective if it works for you  – but it can also be super stressful when things go wrong. A mortgage broker will help you determine exactly where you stand, and a financial adviser will help you put a solid financial plan in place.

Cash flow and equity

Your decision may not be as simple as ‘sell your home and buy another.’ Depending on your financial and lifestyle goals, it might make sense for you to rent your existing property, while renting or buying elsewhere. Or there may be another option you haven’t thought of. Be smart. Seek professional advice and plan ahead to create the life you desire.

Although Covid has given us a major shake-up, there are many reasons you may want to buy another property. Starting a family, separation / divorce, the need to care for elderly parents, or your own retirement can all be catalysts for a move. Minimize the stress of risk and uncertainty and get ready to embrace your new future with the right personal and financial plans in place.

For advice about property purchasing, contact TruWealth on 03 8648 6534 or email contact@truwealthadvice.com.au