Right now we’re living in uncertain times. Most people are living outside their comfort zone when it comes to job security, working from home, caring for children who may also be showing signs of anxiety and uncertainty around the future.
Historically, Australian property has always provided a secure investment through flourishing times as well as times of global economic crisis.
In fact, many experienced investors doubled the size of their portfolios in the last huge economic downturn – the 2008 Global Financial Crisis.
So what gives us certainty to invest in property now?
There are several factors that are providing us with indicators that we are starting to emerge from the Covid 19 experience in positive ways:
- Our economy has taken a huge hit but the Government has activated a ‘recovery’ plan to generate more jobs through large infrastructure projects.
- Most employees retained their jobs and have been working from home to continue the business flow.
- Those who were ‘unemployed’ have been able to access the Job Seeker and Job Keeper payments throughout the Covid experience to keep afloat financially.
- The Corelogic statistics have shown that property has not ‘fallen off the cliff’ now that Auctions and Open Houses have restarted.
- The appetite for residential property is very strong as evidenced by the year on year Auction results data showing a downward trend during the lockdown period and since then tentatively upwardly trending auction results.
- The Government incentives of $25,000 for newly constructed properties and $25,000 for renovations worth over $150,000 will provide buoyancy in the construction industry.
- It’s still remains a Buyers market and with the right negotiation skills, investors can secure property at under market value regardless of what the property market is doing in six to twelve month’s time.
There is always risk involved in any investment class and understanding that risk is crucial to the outcome. Having complete certainty in any market is impossible but making informed decisions on the information at hand, undertaking due diligence and ensuring you ‘run the numbers’ is the best way to purchase an investment property in any market.