6th October 2010: Next-time buyers

Thinking about upgrading or buying your second home? If so, you're not alone, with recent data showing it's the established – or next time – buyers who are currently fuelling interest in the property market.

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The latest BankWest/Mortgage and Finance Association Home Finance Index shows that three quarters of next-time buyers believe it is a good time to buy an investment property, a dramatic increase from the 14.5 per cent recorded during the midst of the credit crisis.

Next-time buyers are replacing first-time buyers, who initially flooded the market when house prices slipped during the economic downturn. Established home owners now see it as a good time to buy again due to a strong economy and confidence in the job market.

The rise in interest rates has not proved a deterrent because buyers are factoring rate rises into their loan structure and decision-making process. Many economists now predict interest rates will remain on hold now until towards the end of 2010.

Buying second time around has its advantages – the wisdom of experience and the ability to use the equity in your existing property – but it also has its unique challenges and this is where your mortgage broker comes into play. Not only can we advise you of your loan options but we can also help you shop around to find the best loan for your circumstance.

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