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Buying property during coronavirus

03/06/2020

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Coronavirus has led to a great deal more caution amongst potential home buyers, causing many to ask if now is a good time to buy and temporarily put their property search on hold.

If you’re considering buying a property, we’ve listed some tips on how to go about it during the current market and economic environment.

Tips to buying a house during COVID-19

Rising unemployment and a recession on the horizon has left many home owners opting to wait and see what happens before buying.

Real estate prices are stabilising and interest rates are at an historic low, which usually leads to more demand. However, coronavirus and the partial shutdown we’ve had in Australia has led to less competition for properties – and potentially more sellers who are open to negotiation.

That's a great position to be in if you’ve got a deposit ready to go and your finance sorted, especially if you can take a long-term view rather than being swayed by the market's ups and downs.

Another consideration causing many home buyers to hold off has been the lack of open houses and the inability to view the property. With inspections starting back up again, try to arrange a private appointment so you can view the property and get a feel for the place before committing a significant sum of money.

It’s also a chance to have a one-on-one conversation with the agent and take your time instead of jostling with dozens of others to try and cross off your checklist in just 30 minutes.

When to hold off buying

If your income is unpredictable or you work in an industry that’s vulnerable to the economic downturn, there will be some important factors for you to consider. Here are some reasons why:

  1. Getting your loan application right. In a more volatile economic environment you may find your income is less predictable which you will need to consider as part of your loan application.
  2. Job security is a must. Your ability to qualify for a loan will be unlikely without a regular income – whether you’re an employee or self-employed.
  3. It’s not worth the stress. You want to feel confident about meeting the repayments and your daily living expenses going forward.

In conclusion

If you’re willing to take on risk, have solid finances and are in safe employment, this is potentially a good time for you to consider buying property.

However, buying during coronavirus or an economic downturn in general still requires doing extensive research, viewing properties, seeking expert advice and having the right mindset. It’s a big financial commitment to make at the best of times, so you shouldn’t rush into any decision or be swayed by constant news and media updates.

Spending the time to speak with an experienced home lender for help and assistance will be an important part of your home buying experience.

Before signing on the dotted line, it may be wise to seek advice from a financial adviser to ensure you’re in a good position to take on debt, and that buying a property is the right choice for you right now.

This article is intended to provide general information of an educational nature only. This information has been prepared without taking into account your objectives, financial situation or needs. Therefore, before acting on this information, you should consider its appropriateness having regard to these matters and the product terms and conditions. Information in this article is current as at the date of publication.

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