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Why you should consider buying now

The Australian home loan market has experienced dramatic shifts in recent years, marked by several increases in interest rates and soaring house prices. For many, navigating the housing market has become increasingly challenging and daunting.

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 now is that any chance of a cut isn’t going to happen until next year. However, these predictions can be notoriously unpredictable and, as we have learnt, subject to change.

Given all of this, it seems 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.

If you find yourself among those waiting it out, you should know that as a legal professional you have an advantage against the market. You could access special benefits and exemptions when applying for finance that may help your ability to buy property, ultimately placing you ahead of the curve.

What’s different for legal professionals in the market?

As a lawyer, you have a unique edge in this market. The security of your profession is like a golden ticket with many lenders, including major banks, offering exclusive perks.

With a legal practising certificate, you could access:

– Home loans with a 10 per cent 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 Brisbane for $925,000 with a 10 per cent deposit typically requires an LMI fee of more than $20,000. Leveraging your profession to avoid this fee with a smaller deposit is a game changer. And the good news is 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. This increased competition could very likely drive prices higher in an already limited supply market.

There’s a silver lining to buying when market and media sentiment are negatively inclined. When most potential home owners are hesitating, it might just be the perfect time for you to make a move.

Should you buy now or wait? That depends 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 buying 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. 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 for lawyers is your best bet for tailored advice.

How we can help

Legal Home Loans specialises in financing for legal professionals at all levels. We have access to all major lenders and private banks, ready to help you select a loan that fits your unique situation. And if you’re a member of the Queensland Law Society, you get $500 cash back upon loan settlement to help with transaction costs*.

Get in touch with our lending experts today.

*Rebate applies to the member’s first loan settled with Legal Home Loans. Legal Home Loans will honour the highest valued rebate applicable to the client. Limit of one rebate per loan in the case of multiple qualifying applicants. Loan value must exceed $250,000 to be eligible.

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