With COVID-19 shifting the paradigm, many Australians are asking is it a good time to purchase a property.
No one knows how long or severe any economic impact will be. The forecast based on the last Global Financial Crisis is a good place to start your predictions.
As per the REA Group article, the housing market has performed relatively well after economic shocks, such as the Global Financial Crisis. The reports mention that although there is still uncertainty around the pandemic, recent interest rate cuts are likely to prevent the market from reaching a major crash.
REA also discusses the significant growth experienced in the decade following the GFC and therefore suggests that investing in property should always be viewed in the long-term.
The graph above details the Melbourne suburbs that have experienced the most growth since the GFC:
REA’s chief economist, Nerida Conisbee, describes the different factors affecting the housing market. An introduction of new development could lead a major property growth and therefore it is important to consider growth economies if you are buying in the long term.
As per the Real Estate Institute of Australia president, Adrian Kelly, it could be a good time to get into the market. “It makes sense to me to be buying when a real estate market is at the bottom of a cycle – I’m not suggesting that we’re at the bottom of a cycle, but we’re certainly not at the top of one,” he said.
With the several state borders still closed across the country, there is a lower competition in the market amidst buyers. Irrespective of the buyer’s uneasiness in property investments while there is a risk of unemployment, it is a good time for those with job security to approach the market.
During this time, Rands Financial Services Pty Ltd remains open by appointment. For buyers, it is the perfect opportunity to chat with our mortgage broker, Sally Pietersz (0434 391 331) about finance. Our Mortgage Brokers are accessible for appointments over 7 days at a time convenient to you. We could help you with your financing as well with our insights into the property market to make the right decision.
Source : Realestate.com