AUSTRALIAN GOVERNMENT EASES RESTRICTIONS FOR REAL ESTATE MARKET
WHAT YOU NEED TO KNOW
The Government’s announcement to ease social distancing regulations and allow for private inspections to recommence has energised the real estate market. First home buyers and owner-occupiers have returned to the market wanting to purchase while the desire of potential purchasers wanting to inspect properties is considerable. With limited stock available, this demand – coupled with record low-interest rates – has created competition amongst purchasers pushing prices beyond expected levels. The much-publicised crash of real estate prices is not evident. In fact, in some pockets, prices have flourished coinciding with the timing of the COVID-19 pandemic.
Buying in COVID-19: what’s on the agenda for the near future?
COVID-19 has signalled a desire for many to relocate from suburban areas to a more relaxed semi-rural lifestyle resulting in a strong interest in all lifestyle properties. New property entering the market remains slow, potential vendors are wanting to see the further easing of COVID-19 regulations before placing their property into the market. We hope further easing provide confidence for those looking to sell and take the next step to place their property into the market.
A degree of uncertainty remains post-March 2021 when the Federal Government’s Job Keeper program will terminate. Some are concerned unemployment could rise and further exacerbate the economic conditions.
Our rental team remain very busy with our vacancy rate at a record low of .25%. Applications have been overwhelming for all properties with strong interest once again being shown for those on the urban edge. The predicted whirlwind of activity has commenced with many occupants looking to relocate for study and the coming school year of 2021. Rental rates have been constant, declining rates are not evident. We are particularly pleased to report that our Commercial Division has bounced back, with most tenants back trading and plans and agreements in place to see the gradual return to ‘COVID-19 normal’ trade.
First home buyer COVID-19 - is it a good time to enter the property market?
With record low interest rates, stamp duty savings and first home owners grant, it is a better time than ever to enter the property market as a first home buyer.
Should we buy a house now?
Yes, as restriction further ease there appears to be a level of consumer confidence with a strong demand from potential purchasers wanting to inspect property. This combined with record low interest rates and the various Government incentives available to first home buyers in particular offers tremendous opportunity to purchase a property. Again, it is critical that potential purchasers keep to their budget and their emotions in check. You want to enjoy life rather than making a commitment that will greatly burden your way of living. Before making a commitment, please ensure you know your limitations, consult with you lending institution or broker. You need to be fully informed to make the correct decision.
Buying investment property during covid - is it a good time to invest?
Potential investors should look at nearby amenities, access to schools, shopping facilities, public transport and parkland. All of these factors have an influence on a tenant’s decision to occupy the property. Convenience and commuting are key concerns in the decision making process. Investors should also consider the age of the property. A new property offers excellent depreciation benefits, whilst an older property may be on a larger allotment that could allow for further development or room to renovate and add value, enhancing the liveability of the residence and a higher rental achieved.