Cautious buyers borrow smarter
Increased caution is not necessarily a bad thing for home buyers, one industry pundit has claimed.
Blue Wealth Property chief executive Tony Hayek said buyers who are cautious are more likely to assess their financial situation and not take on increased levels of debt.
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“Caution is a good thing; it makes people stop and assess their circumstances. This in turn makes them save more for deleverage and puts them in an overall better situation,” he said.
While excessive caution can result in a flat market, Mr Hayek said the majority of borrowers who find themselves in excessive debt situations tend to do so when the market is running hot.
“The majority of people make the most mistakes when the market is running buoyantly and there is an over confidence, this is often the worse time to borrow.”
“So while there is certainly a softening in the market place, there are some great buying opportunities for investors. As far as I’m concerned investors should be looking around the market to buy now.”
