Why waiting for perfect market conditions can cost you thousands
Waiting for interest rates to come down may not be worth the wait, as even small rate rises can add up to significant costs over time.
Full transcript
So in recent news we were featured in SBS. What I basically broke down for them was that waiting for the rates to come down is one of the craziest decisions that you can make because the longer that you wait, the more rent that you're going to pay and the more that the market continues to rise.
Now there's a lot of fear in the media always around the rate rises, so I've done the numbers for you. So if you're looking at an $850,000 loan at around 5.5% and after the latest rate cut is sitting at 5.75%, it's a difference of only $30 per week. So it's a lot of hysteria over not a lot of amount of money.
Now I gave the example that if you're saving for a 20% deposit, yes the loan may be slightly smaller when you buy, but the thing is you're going to be chasing a moving goalpost. The market's going to continue to rise which means that your savings needs to be able to outpace the market.
We have multiple instances of clients who are buying on a 5% deposit by the time the house is built, they're sitting with over 20% equity. They're literally turning $35,000, $40,000, $45,000 into a $150,000+. So if you're waiting for a perfect time, this is it. Take the opportunity that you have, get into the market now because the opportunity that you have today may not be there tomorrow.