Why you should buy a house during the pandemic
Australia’s housing market values suffered mildly in the July 2020 to March 2021 period. Still, the national home value index recorded a 2.8% increase, the fastest pace of monthly growth in three decades. According to real estate leaders, as borders reopen post-pandemic allowing migrants to arrive in the country, housing demand and prices are likely to increase further.
The property market now
From retirees looking to cash in on rental returns to offshore buyers investing on the back of weak dollar, the Australian property market has held on remarkably well. There is affordability in rental properties but not necessarily so in the buying segment.
House prices in the capitals are up 6.4% for the year while the regional areas have clocked a 13% increase. Add to it, the confusion and uncertainty looming over employment situations across the industries seem to have priced out first home buyers of the market. Interestingly, this decline among first home buyers could lower the property price growth.
It is a mixed bag of signals and factors making buyers wonder is this is good time to buy a house.
Why the perfect time to buy a house is ‘now’?
The report from Real Estate Australia Insights analyses that in this period it makes more sense for householders to buy than rent. This is true for 57% of the houses on the market. At current prices, conditions are favourable for buyers and that it will be cheaper to buy a house rather than to rent it over the next ten years.
Here are some compelling reasons to make that deposit on a new house during this pandemic period:
- Unit prices have dropped sharply in capital cities that relied heavily on migration population to rent or lease. Apartments with several empty units are posing a lucrative investment for home buyers. It makes sense to buy during the pandemic before international borders reopen and demands rise, taking the price up with them.
- Buyers confident in their jobs should definitely cash in on the higher chance of home loan approval now.
- The low borrowing and mortgage interest rates that can currently be fixed below 2% per year is a driving reason behind buying property now. The Reserve Bank of Australia has committed to maintain such low interest rates until at least 2024 which is a big assurance for buyers looking to borrow.
- The new normal of work-from-home flexibility, and decreased commuting has brought in many regional property markets outside capital cities into the purview. The buying conditions are particularly favourable in these new local markets.
Research before buying is still the first step
Home buyers can find largest monthly savings in capital city suburbs. For instance, in Victoria, 25% houses and 62% units are now cheaper to buy than rent. However, exercising caution is still the principal rule since buying a house is a long-term financial commitment.
Even with favourable conditions, many buyers who hastily snatched up houses had to face remorse, while others happily profited from their real-estate investments. Get in touch with a reliable firm for proper guidance and protection against pitfalls. A firm like Mr Conveyancer with a dynamic team of licensed lawyers, solicitors and conveyancers can be the complete buying solution saving you time and money.
