2020 has been a difficult year for many. The global COVID-19 pandemic has created a lot uncertainty and anxiety, feelings which have trickled their way into the real estate industry. Despite the challenges that lay ahead, particularly in our home of Victoria, there are still plenty of opportunities for property buyers. Tune out of the media noise and speculation, instead, do your own research and turn to experts who can guide you through the process.
Here are some valid reasons for investing in property during the COVID-19 pandemic.
While house hunting in a thriving real estate market is competitive, shopping during a downturn, or, at very least, a cautious market, can be beneficial. With less buyer activity you may have extra time to carefully inspect properties and negotiate a better deal.
Speaking of a better deal… how does low interest rates, lower prices and less competition sound? Research by state, city, region, suburb and property type to determine whether prices have been affected. The higher end of the market will usually feel the blow of economic impact first. If you’re finding property bargains and are in a position to purchase, now could be a great time to break into the market.
Low risk investment
Residential property is considered a low-risk investment. Historical data suggests that property in cities and regional areas doubles in value every seven to ten years.
Plan for future returns
While the outlook might seem gloomy right now, the fact is that what goes down will come up eventually. Take a long-term approach, be positive and consider what will happen when buyers inevitably return to the market. If you were toying with the idea of selling your property before COVID-19, you may be able to now confidently decide to wait. The rental market is also under pressure, but investors should still plan for rental returns and capital value when the market improves. With the right knowledge and team behind you, your investment property can still perform during a pandemic and into the future.
Time for some upgrades?
Owner-occupiers have been using their extra time at home to complete much needed upgrades. Whether it’s a fresh coat of paint or a full kitchen renovation, people are wasting no time making their home a better place to spend time in. If you’re planning on turning your home into an investment property in the future, now is a great time to get those jobs done.
Always seek professional advice before making any investment decisions as your personal circumstances and financial goals are the most critical factors.