‘It’s Okay to Buy Properties This Pandemic, But Be Cautious’: Intellichoice Finance
Darin Hindmarsh, founder and CEO of Intellichoice Financial, said that despite the negative effects of the pandemic to the global economy, the housing sector remained unfazed. Thus, Australian home buyers, in particular, can take advantage of the reported price cuts of properties in key cities in the country.
Citing a recent report released by the University of Melbourne, which noted that the country registered an average of 4.4 per cent housing price cuts in the second quarter of 2020, Mr. Hindmarsh said the current situation appeared favorable particularly to homebuyers.
For Mr. Hindmarsh, 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-related spending," Mr. Hindmarsh said.
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.
When asked whether it's a good time to buy a new house, he said that it’s probably wise to consider buying a property and it’s just a matter of when to actually buy during the 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.
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.
Mr. Hindmarsh, however, cautioned homebuyers to buy properties with utmost diligence, especially at this time.
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.
According to their model, the country's average price drop will peg at 2.3 per cent by the third quarter of 2020. In Brisbane and Adelaide, however, the price drop was relatively much lower as compared to that of Melbourne and Perth.
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).
The pandemic has severely affected the country’s economy, including the housing sector. The RBA, however, noted that the pandemic has a slower negative effect in the real estate industry unlike other financial markets. It noted that the country’s property market was slower to react than any other industries.
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.
But despite all that is happening, experts agree that the real estate industry is set to bounce back slowly. This means home buyers and sellers alike can expect a better and brighter prospect anytime soon.
About Intellichoice Financial
Intellichoice Financial is a Brisbane-based broking company that’s been providing financial and mortgage broking services over the past 18 years. They provide bespoke mortgage broking services to clients across the country who are looking at buying or building a house, starting a business, making smart investment decisions or those who are simply wanting to get control of their financial situation.
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.