As Australia flattens its COVID-19 curve, a discussion is starting about how we get ourselves back to normal in the coming months.
Tough, courageous decisions lay ahead but one thing is for sure, a healthy property market will be at the top of the post-virus economy wishlist.
Nothing powers our economy more than a vibrant real estate sector and confident buyers. And when the turnaround comes, pent-up demand will ensure momentum swings back to the sellers in a matter of a few weeks.
If you’re a smart buyer, you’ll have made your move before that happens.
Even in this coronavirus crisis, the property market is still transacting and there are excellent purchasing opportunities.
Feeling nervous about the future is natural, especially in these crazy days. But, economically, we are in a better position to recover than when the Global Financial Crisis struck us 12 years ago.
Firstly, we know what has to happen to end this current crisis. When the GFC struck, there seemed to be no end to the tumult despite governments around the world throwing money at the problem for a decade.
Also, credit is much more secure today than it was back in 2008. Our practices around granting mortgages and secured loans are much stricter, and this has put our economy on a firmer footing.
These practices have curtailed property market growth with the volume of building approvals and residential vacancies dipping in many parts of Australia in the past two years. So, supply generally has been quite tight, frustrating buyers and sellers alike.
However, this tight credit environment has created pent-up demand, and governments will want to unleash this at the right time to stimulate the economy and their own dwindling treasury coffers.
Major developers are due to be release apartments in Melbourne and Sydney shortly. Still, they won’t be of such volume as to stymie growth in the market once we’ve started to rebuild the economy.
So, right now, smart buyers will:
Reassess their own financial strategy and goals to capitalise on this unique environment.
Ask the agents they know about properties that offer good value, and vendors who might be keen to strike a deal
Calculate the financial benefits if the property is to be an investment. There’s every chance you can get a 5% rental yield and a 3% interest expense.
Make their move while others dither and doom-say over our future.
While the volume of properties on the market is down, but there are still buyers and sellers. Now is a great chance to hunt down a great value property, whether it’s your dream home or an investment property.