- July 17, 2020
- Posted by: Rashpal Singh
- Category: Finance, The buying process
Is now a good time to buy a property? Should I buy a property during the COVID-19 pandemic or wait? These questions have been asked by a lot of people since the outbreak of the Coronavirus pandemic. These are the type of questions I’m regularly answering for our clients at Credit Hub. To be honest, to buy or to wait is not a simple question to answer, especially when it comes to property purchase, particularly in light of COVID-19.
Owning a home has been considered to be one of the lifetime dreams, it’s important to consider and conduct researches on all the facts and factors as it will be a major investment and commitment. It’s understandable that in such time of enormous uncertainty, investors and first home buyers are starting to feel cold feet.
Impact on the property market
It’s clear that our property market won’t be immune to the Coronavirus economic fallout; However, we have not yet seen a dramatic impact on the housing market, and I believe this doesn’t necessarily mean property value will plummet. According to property experts, the property value may fall a little in the next few months. Nevertheless, according to Yahoo finance “the evidence so far, including the latest auction clearance rates and price data, indicates that the property is hanging tough in the face of the virus crisis.
Should I buy a house during COVID-19
It’s normal to feel confused and panic when everyone is running around thinking the world is coming to an end. It’s also normal to find it difficult to make the decision of buying a property now. While the current uncertain situation may be a great opportunity for buyers as Albert Einstein said, “in the midst of every crisis, lies great opportunity.” From a property market perspective, for those people who are ready to buy, now is the best time. This is because you will get historically recorded low cash rate, lenient lending, and as well as other deals and offers from banks, developers, and builders.
Am I ready to buy a property
As mentioned above, there is no doubt that for those who are ready, they would be buying towards the lower end of the market. However, when determining whether you are ready, there are a few key factors to take into consideration. Most importantly, your financial situations.
- Make sure you have prepared enough for the down payment.
- Make sure you have a secure job and have your finance organized, which means you need to ensure you can afford the mortgage repayment in the long-term.
- Make sure you have an emergency plan in case if something goes wrong, you can still afford the mortgage.