So, you were looking to purchase a property and then COVID-19 come out of nowhere and has thrown everything into chaos? This is completely understandable given the amount of negative press about the economy and the unknown of what lies ahead. We’ve all read the media reports regarding the housing market falling 10%, 20% up to 40% depending on what you read. So, when is the right time to buy? While we can’t be certain when the “bottom of the market” will be, it’s important to consider the fundamentals of the economy and your current financial situation in terms of when you should buy.
Firstly, it’s important to understand the online media landscape is all about getting as many clicks as possible. Clicks drive advertisement revenue and a catchy title that will get the reader interested is key. The truth is no one really knows what will happen post Corona Virus and the headline of “Property prices to remain stable” isn’t really going to get as many clicks as “Property prices to fall 40% says expert”. Some people thrive on these headlines, people without property especially who see this as a chance to get into the market at a heavily discounted rate. Make no mistake though, these will be the same people who will expect property prices to keep falling once they’ve hit their basement and the same people who said during the GFC property prices will crash.
The Australian government has forecast unemployment to increase to almost 10% by mid this year. This is a disastrous situation for many people that find themselves out of work as it can put a lot of financial and emotional stress on families. If you happen to fall in this category, we are sorry to hear of your situation and all the strength to you during this difficult time. It may be best you wait until you find some stable employment in the near future before taking your first step towards home ownership.
For the other 90% of the population in stable employment, you are in a great position with interest rates at historic lows, a drop off in buyer demand due to market fears and somewhat of an oversupply of land on the market, you are currently in what’s referred to as a buyers’ market. This basically means you have more power when it comes to negotiation both with land agents and builders than you would, particularly when demand is high for housing. Some estates land prices have either stagnated recently and many even declined with many estates offering favourable terms to buyers such as low deposits, price lock guarantees etc to win your business. There is more competition between builders as well to secure your work with enticing offers and “giveaways” to appear you’re getting something for nothing.
If you’ve gone through the build process before you’ll know there’s a lot more than just price that should be key to your decision. Build Quality, Build Time, Customer service, flexibility and communication throughout the build process is vital given this is likely one of the biggest financial decisions of your life. If this is your first time going through a home building process, speak to someone you trust who’s gone through the process to get an idea of what to expect. Many people visit review sites such as www.productreview.com.au as they are regarded highly within the industry as a reflection of customers satisfaction with builders.
If you’re looking for an obligation free quote for your dream home or investment property, feel free to contact Kingsbridge Homes on 1800 897 876 or visit our website at: https://kingsbridge.com.au/ Let us show you why Kingsbridge Homes was the 2019 HIA Most Professional Medium Builder as well as 2020 Product Review Award winner thanks to the positive feedback from our satisfied clients.
DISCLAIMER: Please note the thoughts expressed in this blog are the thoughts of the author and don’t necessarily reflect the thoughts of the company. Before making any decision we advise seeking the help of a licenced professional.