If you had hoped 2020 would be the year you take your first step on the property ladder or perhaps invest in real estate, you may be rethinking your plans. The COVID-19 pandemic has flipped our lives upside down and put many of our best-laid plans on hold.
But, it doesn’t need to stay that way.
For property investors, 2020 could be the absolute ideal time to secure a property at possible the lowest price, with the lowest interest rates, and with a number of financial boosts and safety nets.
Here’s why this year could be the best time for you to buy a property.
The reality of buying an investment property is that banks need to see evidence of your income in order to approve your loan. Even if you have a tenant in place to help pay the mortgage, in the current economy where jobs are being affected by COVID-19, banks are keeping a very close eye on personal incomes.
Keep in mind that this situation is fluid and you won’t be stuck in the current circumstances forever. Depending on your situation, you may not be able to move forward with your property investment plans right now, however getting a clear idea of where you stand and what is possible is going to be helpful. If you want to chat with our mortgage and finance specialists, feel free to make contact at any time. We can review your situation and let you know what your borrowing power may be in the future, and how much income you may need to be able buy your first home once your employment is secure.
If you still have a secure income and it looks unlikely to be impacted by COVID-19, then now could be the absolutely ideal time to get a loan and take a step into the property market.
There are a number of reasons why this is your time:
COVID-19 has wiped confidence from the property market, which means there are fewer buyers out there shopping for property – meaning less competition for you, and less pressure on property price growth.
This leads to my second reason: after our capital cities boomed, then slowed, then started to surge in price again, house prices are out of reach for many Australians. At least, they have been. Now with house prices retracting slightly and interest rates the lowest they have ever been – ever! – it’s more affordable than ever to buy a house.
Although it may seem like a challenging time to become a landlord with so many people out of work, this situation is temporary: the economy will rebound in the months and years ahead. Fortunately, the government’s Job Keeper and Job Seeker packages will help ensure people can pay their rent in the meantime.
Once this is all over and confidence returns to our economy, pent up demand for goods and services will explode – including demand for property. There will a boom in property prices and if you don’t take action sooner rather than later, you might find yourself priced out of the market.
These are just some of the great incentives to buy a property in 2020 – but there are plenty of other reasons why getting on the property ladder can be a smart move for your financial security. These include building your wealth, gaining accommodation security and owning an asset that will grow in value long-term.
If listings in your area seem lower, keep in mind that there are plenty of properties selling off-market at the moment. If you network with local agents or perhaps use a buyer’s agent to help you buy a property at the bottom of the market and take action towards your dream of becoming a homeowner.
Sound exciting? If you’re ready to take the next steps, contact us today to get the ball rolling on preapproval, as lenders are processing a huge number of loans and enquiries at the moment and wait times are up to 28 days so contact us today.