Melton Why it could be a good time to jump on the property bandwagon
Buying a home during a global pandemic might not seem like the best idea to some, but there are plenty of eager buyers across the country more eager than ever to get their foot on the property ladder.
Despite stories of doom and gloom and a huge hit to the Australian economy, the Australian property market has remained relatively resilient.
There has yet to be the huge drop in house prices that some experts have predicted, and in fact even when lockdown restrictions where in place in April, property prices were still up nationally by 0.3 per cent, according to CoreLogic data.
Market activity was down for the month, but we are starting to see it pick up again now that restrictions are easing and people are gaining confidence again.
Here are some reasons why buyers are excited about property right now:
They’ve had time to plan – People may have been spending more time at home of late, but they haven’t been sitting by idly.
Many have been using their time to research the property market and see what is out there. This can be seen in figures from realestate.com.au where it was found that search activity was up by 50 per cent on what it was this time last year.
Those who need to sell their property before being able to buy have also been able to use their extra time to get their house renovated and ready to be put on the market.
Restrictions are opening up – A lot of people chose to wait on the sidelines while strict social distancing restrictions were in place, but now that these are starting to ease many are seeing it as a green light to put their plans into action.
There is a lot of pent up demand from both buyers and sellers, and now that auctions and open homes are possible again, people are starting to get more engaged with the market.
Mortgages are cheap – The cash rate is sitting at a measly 0.25 per cent right now, making for the cheapest mortgages rates in history.
Those who do take up a mortgage right now may have the opportunity to pay their home loan down relatively quickly.
A tangible investment – Property prices have held up well during this crisis, despite other investments such as stocks proving extremely volatile.
During uncertain times people that have the money to spend often prefer to park it in bricks and mortar investments like property, as it proves again and again that it is more resilient than other investment types.
The chance for a lifestyle change – The way we live has changed dramatically, and that means what we want from our homes has changed too.
More people are working from home now and there’s a chance the typical 9-5 office day will never return to the way it was.
This could mean we’ll see remote workers looking to move away from their offices and into regional areas, where properties are generally more affordable too.
Less pressure – While there is rising confidence in the market, things are still more quiet than usual. This gives buyers the time to look around and find the property they want without the pressure of having to quickly snatch up a property for fear of missing out.
Keep in mind however that every property market is different and there might be a lot of buyers in the wings waiting to get out and start bidding very soon.
