There’s no doubt it’s an unusual time during this global coronavirus pandemic. But, fortunately, we can find some positives in buying property!
Almost everyone suspected that buying a property while in isolation would be almost impossible however, at the end of the day, we all need a place to live. So while some buyers probably wouldn’t have chosen to be looking at purchasing their next home during an unprecedented lockdown, it might not actually be as bad as you might think.
If you’re thinking of buying now, here are some tips how best to approach the situation.
1. Assess your own situation
While the outbreak is one matter, the economic aftershock of the pandemic is another and conditions can change rapidly, both positively and negatively, so you’ll need to take it day by day.
If you find yourself working in an industry that is currently affected or will possibly be affected, then you need to assess the likelihood of continued employment. If you feel comfortable, or as comfortable as you can be, then now could be a great time to find that dream home.
2. When it comes to your money, plan for the worst
It’s impossible to know what the future holds but you can plan for the unexpected by making sure you can access a financial buffer if you need it. The more money set aside the better, but this isn’t always possible – especially for those working in industries affected by the COVID-19 shutdowns, such as travel and hospitality.
If you’re thinking of taking out a new loan, you should do your best to make sure you’ll be able to service it especially if someone else in the household loses their income.
On a positive note, companies will need to rehire once the pandemic eases and the economy comes back.
The other unusual thing to consider is, the record-low interest rates.
Owning your own home is still the great Australian desire, and as we are seeing at inspections, many owner-occupier buyers are pushing hard to secure their home in the face of the global pandemic.
3. Seek out the best advice
If you have any doubt about anchoring yourself to a long-term relationship with the bank then search for knowledgable experts.
The adjective we’re hearing around this current situation is “unprecedented”, so it’s highly likely you’re going to get a wishy-washy answer. But the more informed you can be, the better decision you’ll make.
I also recommend you only focus on accurate and timely sources as situations in the property market are changing almost daily and what was relevant 4 months ago is not now.
4. Remember, property is for the long term
An important thing to remember is that property is a long term purchase. Experts agree that owning the family home is a great way to ensure long-term financial security, and while markets can dip in the short term, property values will generally increase over the long term.
To be in the best position to buy be pre-approved, confident and informed and don’t be afraid to make an offer.
“Be greedy when others are fearful, and be fearful when others are greedy.”