'It's okay to buy properties this pandemic, but be cautious': Intellichoice
Buying a property is a major decision to make. Amid this time of high uncertainty, the real estate industry remained relatively resilient. In fact, this might be a good time to purchase a new home.
By: Intellichoice Finance
For homebuyers, this may be an ideal time to start looking for a house to purchase as prices are expected to drop by 4.4 percent across the country in the second quarter, the University of Melbourne predicted.
Best Cities to Buy Properties in
This means it is the most opportune time for homebuyers to go out and shop for a property. The price drop, however, is not uniform across Australian cities with Melbourne and Perth having more pronounced price cuts at 5.5 per cent in the second quarter of 2020. It is expected to slow down at 2.5 per cent in the following quarter.
Sydney's housing market is predicted to experience price cuts at the rate of 4 per cent and 2.5 per cent in the second and third quarters, respectively.
For Darin Hindmarsh, CEO and founder of Intellichoice Financial, the recent pandemic has pushed the government to boost economic activity by beefing up its spending through infrastructure projects, thereby creating a trickling effect to the entire economy.
"By the looks of it, the Government is following a Keynesian economic agenda and as such, a lot of Australians are underpinned by construction and construction-
Mr. Hindmarsh noted that this economic approach enabled the Australian economy, which is heavily dependent on the construction industry, to remain relatively resilient from the recent pandemic.
"If you are wise, it's a good time to look at buying or building. It's just a matter of what point you do it within the pandemic. If it gets a lot worse, then ideally it's not a good time, but if it starts to level out and you get a feeling that things are turning around from all available sources of news, then it's probably a good time to buy", he added.
Selling Properties During Pandemic
Selling real estate properties in Australia has become more challenging for many owners after the Covid-19 pandemic hit across the world, the Reserve Bank of Australia (RBA) (https://www.rba.gov.au/
Mr. Hindmarsh added that regardless of the circumstances, people will still buy a house. But to get the most out of a property sale, he said those who are planning to sell their houses make sure that the property is in its prime condition.
Selling a property in haste, without doing the needed preparation on the physical aspect of the property, can negatively affect its valuation.
"Right now, people are looking for bargains and if you don't prepare your property, you're going to end up in a bargain bin. But if you have a property in a good condition and in a prime location, there's a good reason people are still going to buy as their personal citation chances", Mr. Hindmarsh noted.
To find out more about the financial planning service offered through Intellichoice and to arrange for an obligation free appointment with a qualified financial planner, call +61 7 3624 1900 or visit www.intellichoice.com.au for more information.
+61 7 3624 1900