Whilst many property investors are sitting on the sidelines waiting for the Covid 19 experience to conclude before getting back into investing, others are taking advantage of the current lockdown situation by increasing their investment knowledge and skill.
This current economic situation has highlighted the fact that when you invest in property, it pays to have a ‘back up’ plan in place for when times get tough. (Of course, we had no idea just how tough things would get).
Having the back up plan is designed to get us through tough economic times while we hold the property for the long term for capital growth.
It’s proven to be the case that those investors holding positive cash flow properties prior to the Covid 19 experience are now weathering the economic storm far better than those trying desperately to support negatively geared property portfolios.
The properties that are yielding 5% and higher are helping their owners to pay their own costs and pay down debt, making total sense when the economic tide turns.
Today’s Corelogic Early Market Indicators report has highlighted the percentage of properties being refinanced at 73.5% up 6.6% percentage of properties purchased at 17.8% down 2.9%, the percentage of properties being constructed at 8.3% down 9.8% and the percentage of Mortgagee in Possession properties at 0.21% up 33.3%. This was the week on week change information.
These figures are not surprising given that the lockdown has restricted movement of people to view new properties and the unprecedented number of people who are unemployed and unable to repay their mortgages will likely continue to climb the longer that the restrictions remain in place.
That being said, many people still remain employed and in a good position to plan how they will invest in property in the future.
Those who are using their time wisely and educating themselves now by undertaking short online Property Investment courses stand to be ahead of the game when they enter the new world post Covid, learning how to strategically and intelligently invest in property to create the next wave of wealth.