There’s so much uncertainty with what’s going to happen to our economy and our property markets. Traditional residential designs are being challenged, as are assessments of suburbs best suited to withstand some jarring shocks being predicted for the property market as the economy continues to slow and unemployment rises.
Whether you’re a first home buyer, or planning to upsize, downsize or invest, the COVID-19 coronavirus will have cast a grey cloud of uncertainty over those beautifully curated plans right now.
How is COVID-19 impacting the Australian property market?
“We are not yet seeing a dramatic impact on the property market due to COVID-19, mainly due to a few reasons:
- The RBA cutting the cash rate twice in March 2020 and many banks taking the initiative to pass on these savings and/or coming up with their own policy that assists with home loan mortgages.
- Some banks are allowing mortgage relief, such as: ‘freezing’ mortgage repayments for 6 months, offering a new low fixed rate home loans or refinancing, extending out the mortgage term (time) without penalty.
- Investors opting to invest into the property market, which is less volatile than the share market.
- Government financial stimulus packages, which is allowing people to access some funds to tie them over in the short term.
- Real estate agents being more savy in the marketplace and using all manners of technology to allow them to do business. This includes videos, online auctions, etc.
What would I say to buyers?
“From a property market perspective, for those ready to buy, more than ever now is the best time – especially with record low cash rate, lenient lending, and many banks offering deals.”
Have you been waiting for a sign to enter the property market? I understand their reasoning for being uncertain and it is probably even more understandable given the year we have had! But, I believe the right time is when you are ready, as there will never be a “perfect time”.
As a buyer’s advocate, I help clients purchase homes all the time. I find time and again that the best homes sell quickly – no matter what the market. When you’ve found the home you love, you’ll want to position yourself so that you can make it yours – but be certain that you’re not over-paying. Here, I share some tips to help you along your journey.
- Don’t fall in love too quickly. A home may look very different in real life to how it looks online, and building and pest / property reports may reveal serious and significant faults or challenges about the property that may make you decide not to proceed with the purchase. Investigate the property and the neighbourhood – thoroughly and always inspect at least twice and if need be bring other people with you to view the home.
- Never make an offer in haste – it should always be a considered decision both to make an offer and the amount, but at the same time, if you don’t make an offer before someone else does, you may lose out! Examine the market, work out what comparable homes are selling for and work out what you are willing to pay.
- Keep your options open – just because you love this home, doesn’t mean you should not be exploring other homes that may also be a good fit for your needs.
- Never overstretch your budget. Your maximum is your maximum.
- Ensure you have finance pre-approved and a deposit before you set out on your search so that you know you have the funds available to proceed as soon as you find something you like that checks out and ticks all of the boxes.
- Ensure that you have engaged a conveyancer / property lawyer before you set out and that they will be available to you so that when the right home comes up, they are ready and available to review and negotiate the contract for sale for you. Request a contract for sale if you’re interested in purchasing the home and have it reviewed by your conveyancer or property lawyer.
- Be aware of exhaustion. If you have been searching for a long time, you may be inclined to compromise, over-pay or “settle” just so that you can move on with other things in life. But a property purchase is expensive – perhaps the most expensive decision you’ll make. It is expensive to buy property and it is expensive to sell – so the decision to buy needs to be a considered, rational and wise decision.
- Buyer’s Advocate is your friend. Every day, buyer’s advocates buy homes for their clients. We relieve buyers of the burden of searching, inspecting, reviewing and evaluating homes as well as adding so much more value: due diligence, knowledge, experienced, negotiation strategy and purchasing know-how. The average search time with a buyer’s advocate is generally two to three months for a home due to the efficiencies we’re able to extract, our access to off-market homes and our ability to “cut to the chase”: knowing where to look, how to look, how and what to quickly disregard and where to focus our time.
Buying Property Is The Biggest Financial Commitment You Are Ever Likely To Make. If You Would Like To Buy The Easy And Stress-Free Way contact us.