Why You Should Consider Buying Property Now
As an accounting professional, buying property now could be a savvy move to get ahead of a surge in buyer competition and capitalise on potential price hikes.
The Australian home loan market has experienced dramatic shifts in recent years, marked by numerous interest rate hikes and unexpected rises in house prices.
Back at the beginning of the year, there was buzz about interest rates going down in late 2024. But with inflation moving in unexpected ways, the consensus amongst economists now is that a rate cut is unlikely to happen until 2025.
As a result, it seems that many potential home buyers are playing the waiting game, hoping for clearer signs of future interest rate drops before making a move to purchase property. Whilst others hesitate, you should know that some lenders offer benefits to certain accounting and finance professionals, placing you ahead of the competition.
What’s Different For You In The Market?
Simply put, there are specific roles in the accounting & finance sector that are considered low risk by some lenders. This is because they are economically essential and therefore have a higher level of job security than other professions. They also have a historically low rate of loan delinquencies as a cohort.
Professionals such as chartered accountants, certified practising accountants, actuaries, and chartered financial analysts may be eligible to access these benefits. If you hold evidence of professional body membership with organisations such as CA ANZ or CPA, you are likely to qualify for:
- Home loans with a 10% deposit
- Waived Lender’s Mortgage Insurance (LMI)
- Preferential interest rates
These benefits could make entering or advancing in the property market more realistic and attainable for you.
For instance, purchasing a median-priced house in Sydney for $1.6 million with a 10% deposit typically requires an LMI fee of over $25,000. Leveraging your profession to avoid this fee could change your purchasing strategy by reducing transactional costs and boosting deposit size. It can even help by giving you flexibility of how you structure your home loan, for example allowing you to retain a portion of your deposit in an offset account for your free use. The good news is that this benefit applies to both owner-occupied and investment properties, making it advantageous no matter where you are on the property ladder.
Now, let’s look ahead. When the cash rate eventually drops and interest rates subsequently fall, demand is expected to surge. Lower interest rates will make buying more attractive because it typically means greater affordability and increased borrowing power. But here's the kicker—it's more attractive to everyone, which means more buyers flooding the market.
There's a silver lining to buying when market and media sentiment are negatively inclined. When most potential buyers are hesitating, it might just be the perfect time for you to make a move.
Should you buy now or wait? There is no right answer and your decision will depend on your unique situation. But consider this, buying now could be a savvy move to get ahead of potential price hikes and a surge in buyer competition. Plus, you could benefit from a potential reduction in interest rates down the road.
What Steps Should I Take?
If purchasing a home has been on your mind, it is highly recommended to obtain home loan pre-approval. Pre-approval gives you a clearer picture of your borrowing potential, so when you find the right home, you can act fast with confidence. You'll be in a strong position to negotiate on price, knowing your upper spending limit.
Remember, the best course of action depends on your individual financial circumstances and budget. Speaking to a specialist mortgage broker is your best bet for tailored advice.
How We Can Help
CA Home Loans is Australia's only mortgage broking service that specialises in lending to chartered accountants, actuaries, and financial analysts. Using expert knowledge and access to over thirty lenders, we leverage your profession to unlock exclusive benefits and exemptions when applying for finance. We operate nationally, serving elite finance and accounting professionals around Australia.
Get in touch with our industry experts today.
Disclaimer: Subject to lenders terms and conditions, fees and charges and eligibility criteria apply. Your full financial situation would need to be reviewed prior to acceptance of any offer or product. This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances.
