Potential home buyers told to consider value
Article by Mozo
People comparing home loan offers in Australia could be among those to heed the advice of one expert when looking at potential properties.
In an interview with the Sydney Morning Herald, Shane Oliver, economist and strategist at AMP Capital Investors, said many potential purchasers neglect to consider the value of a property in when looking at deals.
According to the expert, most buyers simply consider whether or not they can afford the mortgage and judge a property's value on the number of bedrooms it has and its location.
However, Mr Oliver told the news provider that more attention should be paid to whether the property is over or under-valued in the current market.
The expert said that while this is not a priority for many home loan customers, it can be "very important".
He likened the housing market to the trading of shares and explained that the basic rule of thumb is that if people purchase a property when the market is offering low prices, then they are more likely to see a return on their investment.