Is this the perfect time?

Experts give a GO signal to buy a new house amid pandemic

The effects of corona virus disease 2019 (COVID-19) may be with us for some time and experts believe it might be the right time for families who want to purchase a new house amid this pandemic, to act now.

A record-breaking of nearly “one-third of those surveyed had been considering upgrading, downsizing, shifting location or getting into the property market for the first time,” according to Rabobank, in what would have provided a massive boost for the economy. This idea gives the confidence to seekers to purchase new properties as the “prices are falling and supply is increasing which creates more opportunities for bargains, as interest rates remain low and dissatisfaction with current homes is rising as a result of prolonged isolation time spent in them.”

Glenn Wealands
Head of Client Experience – Rabobank
Photo: Amy Piddington

In a lighter span, Glenn Wealands, head of client experience of Rabobank, said the bank had been conducting its financial health barometer of the country for over a decade. “But in the poll we conducted in the first quarter of 2020, we found a record high number of Australians – 29 per cent – citing the intention to buy a new home in the next two years,” he added. Wealands also suggested “That eclipsed the previous high of 24 per cent in 2016 when house prices went up by 15 per cent. But I think there’s definitely a lot of people exhibiting really good financial management leading into the pandemic and having a sizeable deposit saved so were aware of what they could afford. People are now seeing good opportunities in the market and perhaps also feeling FOMO.”

Some experts advise that, if potential purchasers aren’t too adversely affected by the coronavirus crisis, now could be an excellent time to continue with those plans. This will give them the time to purchase budget-friendly properties where they could find an ideal home of their choice amid the pandemic.

Nerida Cole
Managing Director of Dixon Advisory

Nerida Cole, managing director of Dixon Advisory, said that with so many people previously ready to pounce on the market with deposits put away and research on what to buy completed, then there’s still room for them to act if their finances haven’t been derailed by corona virus. She also added: “The good thing now is that it is a buyers’ market and if vendors aren’t coming to the party on price, then they can walk away as there’ll be another property around the corner. A lot of people really want to sell now, whether investors wanting to get out of the market or people under financial pressure themselves, so there are good opportunities.” On inquiring about the fact that is this really a good time to buy, she said “That all depends on someone’s job security. People have to be honest with themselves about their jobs and their industry and be a little bit cautious about making a huge commitment if there is concern around their jobs.”

Cole further added “Purchasers are definitely now in the hot seat. Particularly when the eviction moratorium ends, we’re likely to see even more property coming onto the market for sale. As long as you do your due diligence, you’re the one in control.”

On the other side, Justin Doobov of Intelligent Finance noted that now is a good time to buy, and especially to upgrade to a more expensive property. He said that “People have spent a lot of time in social isolation in their homes and are now realising the shortcomings of their homes, and want to move into something better.” He also added, “Now is a good time to be ready to buy because there’s going to be a lot of property coming onto the market that people need to sell as they’ve lost jobs or are under financial strain and will be ready to make discounts. But my advice is always to sell before you buy, so you don’t end up one of those desperate sellers.”

Reassuring signs of pre-COVID-19 financial health within the community, the Rabobank research found that 73 per cent of people said they lived within their means, 66 per cent had a long-term financial plan and 62 per cent regularly reviewed their finances. Eighty per cent said they were financially comfortable – up from 2019’s 79 per cent. By this, Wealands noted that “With perceived demand having been at an all-time high, now is definitely a great time to take stock and review how circumstances currently are, and whether there are opportunities. It’s always important to be on the playing field and actively reviewing finances rather than a spectator just wondering when the pandemic will subside.”

The demand of online selling is also part of the perfect timing where almost all Australians are staying at home. Earlier last month, the Prime Minister Scott Morrison has ordered that “in the retail space, auction houses, gathering together in auctions rooms, that can no longer continue, real estate auctions and open house inspections, that cannot continue.” This means that no public auctions and open house inspections will be conducted during the course of the battle against the global threat of pandemic until fully contained. However, it is still expected that private inspections can continue and that there will be steep rise in virtual tours.

The fact that we are facing an invisible foe right now, Australians are engaging themselves so much to online purchase where they could look upon their ideal property, embellished with equitable descriptions and complementary aspects. Featured in there are a lot of options on selecting the ideal home with their own comfort. The site offers a variety of options on the available property set to be purchased or auctioned. There are properties available in Central Coast, Northern Beaches, Eastern Suburbs, North Coast, Tweed Heads/Surfers, and Southern Highlands, which are all located in New South Wales, Australia. These properties are encrypted with supporting details and significant features where the purchasers would be able to distinguish one property from another.

In this global pandemic we are facing, many are skeptical about the genuineness of upgrading their lives. But with the help of experts who know best about this flavor, rest assured that it is truly a perfect timing before everything will go back to normal again.

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