Forrestfield 
Christmas is now in sight, and 2023 is on the horizon.
If you are hoping to buy a house next year, now is the time to start preparing.
What’s in store for Australia’s housing market in 2023?
If you have been following real estate trends over the last few months, you will know that prices are settling after dramatic increases in 2021 and 2022.
While it’s by no means a ‘crash’, the trend towards more affordable property looks set to continue into 2023, although there are always exceptions.
While this is good news for buyers, it is partially offset by rising interest rates. Australia’s interest rates have now risen for six months in a row and lender interest rates have been adjusted accordingly.
Early 2023 will be a good time to buy property, before rates go up further and while the market is not affected by rapid price growth.
Preparing to buy a home in 2023
- Get your finances in order
Buying a house is a huge investment, and lenders will want all sorts of details before you can apply for a home loan.
Before you apply for a loan, start working on clearing or consolidating as many debts as you can while putting money away as savings and minimising your regular expenses. This will help you look good to lenders.
- Find a broker
Mortgage brokers are your best weapon to find the best loans and financing to suit your specific needs. Working with a broker makes sense because they can compare multiple loans on your behalf and make sure you get the right deal for your circumstances. They also take over the process of applying for a loan for you, often for no charge or very little cost to you.
- Get pre-approval
With your finances in order and a broker to help you select the right lender, you should always get pre-approval for a home loan before you start seriously looking for property.
When you have pre-approval, you will know how much you can spend. The vendor will know that you are ready to commit and you can submit your offer with confidence.
- Do your research
Once you have an idea of what you can afford and have pre-approval from a lender, find out how much the style of property you are looking for costs in the area you are hoping to buy in.
At this stage, you can start to make a realistic estimate of what you can and can’t afford. This is also a good time to start working on a list of ‘must haves’, ‘desirables’ and ‘bonuses’.
For instance:
- Must have: Three bedrooms
- Desirable: Undercover parking
- Bonus: Swimming pool
Start with online research to see what’s available in your price range. You may need to adjust your expectations. Once you know what you can afford, start visiting some open homes in person.
Learn what to look for in terms of property size, condition and features. You’ll soon start to understand why some homes are valued higher than others in the same suburb or even the same street.
You might also want to attend some auctions to see how they work and become familiar with the process. This will help you when the time comes to bid yourself.
- Find an agent
As you visit open homes, get to know the selling agents. It’s their job to find buyers as quickly as possible so they will be excited to hear what you have in mind and what your budget is.
Take the time to have a chat and share your feedback. The agent may have another property coming up for sale that matches your preferences.
Buying a home can take several months because of all the steps involved. Start preparing now and you’ll be able to bid with confidence and purchase your first or next property in 2023.
