A lot has changed in the last few years since COVID-19 first hit the world. Alongside illness, death, lockdowns, social distancing, and a massive impact on the workforce and businesses of all sizes, we saw property prices soar to unprecedented levels. Construction boomed, prices went up, and interest rates climbed – all in all, the impact on the property market was huge.
For many, there were a couple of years when investing in property seemed like a pipedream. Whether this was because of personal circumstances such as health and income, or because of unrealistic prices and limited property available on the market, there was a lot of uncertainty.
But what about now that the world, and Australia, is living with COVID? In a post-pandemic world, investing in property is a smart move – let me tell you why.
What does the Australian real estate market look like post-COVID?
First things first, it’s important to remember that media thrives off negativity and fear. Over the last few months, wherever you read or watch the news, you’ve probably seen a lot of negative publishing about the economy and the real estate market.
It’s true that we have long passed the soaring heights of property prices experienced recently and that the market is correcting. But headlines that predict a ‘market crash’ and warn of prices dropping anywhere from 30% to 50% should be taken with a grain of salt.
Things are never as bad as they seem.
My outlook on this is that yes, we are in a correcting market, and we have experienced a bit of a downturn. But it’s not something you should be panicking about.
In the aftermath of the COVID-19 peak, the fundamentals of the Australian real estate market are still very strong. The country still has an undersupply of properties for rent. We are still building less than what we should be for the current population, let alone for the growth that is expected to come in the next couple of years as skilled migrants and international students return to the country.
So, while it is important to acknowledge that yes there has been some decline in prices, and yes, the market is correcting, I am, overall, still very positive about the market and where we’re headed.
My top tips for investing in property in Australia, right now
If you’re wanting to buy an investment property, it’s important you do the work before you jump in. Here are my top three tips for investing in the current market:
- Don’t wait for the perfect time
If property has been on your mind for a while, you may be feeling disappointed to have missed the soaring prices we had two years ago and wondering if it’s worth waiting before making your move.
I’m here to tell you there is never a perfect time to invest in property. You can never truly predict the top or the bottom of the market, meaning there is never a “perfect” time to buy.
Instead, you can look at how things are trending and what is expected, and see the positives. Rental properties are in extreme demand right now, particularly in Victoria, Brisbane, and WA. In fact, vacancy rates in Perth have never been lower. Rent has gone through the roof across the country in the last couple of years and is likely to stay that way as demand far outweighs supply – and in my mind, that makes now a great time to invest.
- Do your research
If you want to buy an investment property, the very first thing you should do is get financial advice from the experts. We are still experiencing the fallout from COVID-19, so it’s important to take a good look at your finances and work out what your options are.
This is where I come in, sharing with you a network of investment experts, in-depth knowledge of property across NSW, Queensland, Victoria, and WA, access to property investment opportunities (both new builds and off-the-plan), and independent recommendations suited to your unique situation.
If you do your research, take a good look at your budget, goals, and property needs, and then choose the right lender, and the right investment opportunity, you stand to benefit in both the short and long term.
- Find the right builder
If you decide to build, your choice of builder will be one of the most important decisions you make.
We’ve seen recently that people have been put off building because of increased construction prices, and there’s been a lot of fear around builders going bust. But I speak to builders regularly and have done throughout the pandemic, and while it’s true that prices did rise, they are now stabilising.
Demand has dropped right off, meaning both trade and material prices are expected to go down, easing the pressure in the industry. Because of this, there are some great prices to be found right now.
If you do your research and pick the right builder, you’ll get a great house built for a good price in the current market.
Why you should invest in property in 2023
If you invest in property in 2023 you stand to have both immediate and long-term benefits.
In the near term, the benefits are associated with tax depreciation and high rental incomes. In the longer turn, capital growth will happen.
To keep it simple, remember that new properties will be in higher demand in a market where rental supply does not meet demand. You’ll spend less money on maintenance and warranties than if you buy established, allowing you to maximise earnings from your rental. Rental prices are already at an all-time high; with a well-presented, high-quality new home, you may even be able to ask for a premium.
I’ve said it before and I’ll say it again, we are simply not building enough properties to meet demand. This applies to both the current demand, of people already in Australia looking for rental properties, as well as the expected demand in the next year or two as skilled migrants and international students come back to the country in increased numbers following lockdowns and travel bans. With this in mind, there are a lot of positives to be found in the current market.
Let me help you take control of your financial future
If you need someone to help you put these tips into action, get in touch. I’ve established strong relationships with specialty investment builders, developers, mortgage brokers, property managers, and industry professionals. That means I can offer you personalised advice and proven strategy to help you secure off-the-plan and investment properties.
