The global Covid-19 pandemic has created a very uncertain time, but that helps to create opportunities in the real estate industry. Buyer behaviour may have slowed down, but property investment is a long term goal which can be more attainable during a pandemic.
- The media doesn’t report on everything in real estate
Don’t let the media focus on house price fluctuation and auction clearance rates sway you from considering your investment. It’s important to remember that each state, city, region, suburb, and property type, will be different as each area is affected differently by the restrictions.
- Benefit from more attainable pricing
Keen buyers can secure a bargain as the property market, particularly the high end market, initially softens due to the economic impact of the Coronavirus.
- Property is considered a low risk investment
The residential property sector is seen as low-risk when it comes to investing. Historical data suggest that over a seven to a ten-year period, property in major cities and many regional areas will double in value.
- Less competition from other buyers
With less buyer activity on the market, you might be able to negotiate a better deal on a property. Less competition also means you have more time to properly inspect a property before making a purchase.
- Property can be easier to purchase
When house hunting in a booming market, it can be difficult to break in for investors. However, lower prices, low interest rates and less competition make it easier for buyers to invest, especially in the apartment market. The prices of these properties will likely spring back when the virus crisis is over and buyer and seller confidence returns.
- Planning for when buyers return
If you’re planning on eventually reselling a property once the Covid-19 pandemic is over, you’ll be able to take advantage of the increasing number of buyers who will return to the market.
- Rental income is likely to increase in the future
While some rental markets were already under pressure prior to the Covid-19 pandemic, such as those in Sydney and Melbourne, investors should still be able to increase their rental returns and capital value when the market returns to better times.
- Fixer-uppers can be more affordable now
Although fixer-upper properties can be scarce, they’re likely to be cheaper now compared to before the pandemic thanks to a drop in buyer confidence. With all the time we have in isolation, it’s also a great time to flex those renovation muscles.
Always seek professional advice before making any investment decisions as your personal circumstances and financial goals are the most critical factors.