1. Buy while House Prices are Stable

House prices rose by 11.3% in the last twelve months. Although this rise is partly due to the first homebuyers incentive, it is not the only reason house prices rose. Many people took the opportunity to upgrade to a larger home, or to purchase a home in a more expensive area, because interest rates are low.

You may be pleasantly surprised at the resale value of your current home. If you are considering the purchase of a new home, do not hesitate to consult your broker now.

Because of the help given to first homebuyers, the Global Financial Crisis did not hurt the Australian real estate market. As the Australian economy continues to improve, the real estate market should stabilise over the next twelve months. Due to the scaling down of the first homebuyer’s incentive, current homeowners will benefit from a more stable market. You can buy your dream home and sell your current home with confidence in both the Australian economy and the real estate sector.

2. Buy while Interest Rates are Low

Compared to previous years, interest rates are still very low, so 2010 is an excellent time to upgrade and purchase your dream home. The Reserve Bank board does not meet until February, so interest rates will not rise until after February. You can expect interest rates to rise throughout 2010. The sooner you apply for a loan, the more you will benefit from today’s low interest rates. Talk to your broker about arranging a home loan best suited to your needs.

An alternative to selling your current home is to keep it as an investment property. If you can arrange a low interest rate for your new home, you may have the opportunity to own both homes. There continues to be a demand for rental accommodation in Australia. You should have no difficulty in obtaining a tenant to rent your current home. Use the rent from the investment property to help you pay for your new home. You may be entitled to tax benefits as well.

3. Buy a Brand New Home

On Wednesday, 6th January, the Australian Bureau of Statistics reported residential building approvals rose by 5.9%. This is the highest rise for twenty-one months. With so many building approvals for new homes, this year will be another good year for the real estate market.

There are many advantages to having a home built especially for you. You can choose the fixtures and fittings of your new home. It is very exciting to choose the colour scheme for your new kitchen and bathrooms. Some builders offer discounts or upgrades on your fixtures and fittings.

Having a new home built could give you time to sell your existing home without the need for bridging finance. If you decide to keep your current home as an investment property, building your dream home will allow you time to find a tenant and make the necessary financial arrangements.

Take advantage of continuing low interest rates in 2010. This is the perfect time to purchase the home of your dreams. It is an ideal time to sell your current home while interest rates are low. Alternatively, you may be able to become an investment property owner for the first time. Using your current home as an investment property will help ensure your financial future.