The property market in Australia isn’t immune to the effects that coronavirus has had on our economy. Property prices have plummeted recently with sales volumes also down dramatically.
Prior to the restrictions put in place due to the coronavirus, this year’s property market kicked off on a high note. But now, all major property markets are forecast to be negatively impacted for the rest of the year; with the market rebound and eventual stabilisation not likely to occur until sometime in 2021.
This news hasn’t been great for anyone selling their property on the market, but it has unexpectedly put many first-home buyers into quite a strong position. Properties which would have most likely been over budget only months ago have now become increasingly accessible due to the current conditions of the market.
While purchasing property can almost always be put off until later for most people, there are thousands of prospective buyers out there who are still eager to buy. Especially those who have a deposit saved and a secure job, as they are the most likely to become the most powerful forces in the property market over the next few months.
So, who should be considering buying a property in the current market? Quite simply, people should only be considering property purchases who have the safety net of a secure job, along with either enough money saved or other liquid assets.
Some will see this lower market as an opportunity to purchase property at a price that is materially much lower than it was earlier this year. Then there are those brave cashed-up people who believe that times like these are when fortunes can be made, and they hope to secure a property at once-in-a-generation bargain prices. And who knows, they could very well be right on the money.
It is actually quite likely that some excellent opportunities to buy will become available over the coming months, especially during the second half of this year. That means there are some savvy investors who are ready to buy, in preparation for a predicted rebound next year.
Lenders & Banks
First-time buyers especially must be confident that their job is secure before deciding to take out a mortgage.
For those who do end up losing their employment during this time, most of the major banks in Australia have dropped rates, and many are offering affected customers up to six months break from paying their mortgage. Other lenders are offering services that allow you to refinance or consolidate debts.
To get yourself into the best possible position to nab yourself some property at a bargain price, ensure that your finance is completely sorted. Not only will this give you the most realistic budget to work with which will provide you with some confidence when you’re considering all of your options, but many real estate agents won’t even take bookings for viewings without finance pre-approved.
Most reports that are forecasting property markets have included strong disclaimers that state their high uncertainty of what’s to come. This is not only due to the fact that everything is seemingly changing almost daily, but also because the longer that this crisis continues, the more material impact it will have on Australia’s property market.
Just remember that there are no guarantees when it comes to the property market. But at the end of the day, whether you’re buying or selling, we’re going to make it through this.
If you want to find out more about getting a mortgage in the current market, talk to our team today.