Buying a property is often referred to as taking a leap of faith. Investing a large sum of one’s life savings in order to make a large investment is evidence of such. Even in a booming economic climate with the world functioning as ‘normal,’ the notion of saying goodbye to one’s money and hello to mortgage repayments and debt is enough to make anyone’s nerves go into overdrive! Considering the current economic climate, let’s beg the question on home buyers’ minds – is it truly a good time to be making such a large investment in 2020?
Based on annual data of the property market, Autumn is the best season for buyers. Whilst the sales are indeed fewer and far between, the number of active buyers lessens with the rapid decline of interest. Say goodbye to a heavy competition at auctions, the intense stares of competitors and most of all say goodbye to harsh pricing. With the decline of consumer interest, it is fair to say that pricing will soften and decrease the longer the property stays on the market. However, due to the onset of the global pandemic, countless Australians have missed their chance within the property market this past Autumn and are heavily advised to wait until next year.
Recession Depression: Taking a Chance
“Should we hold off until next year?”
“What if we are the lucky ones?”
“The recession hasn’t been confirmed yet, let’s get in while we can”.
These are all questions that are playing on buyer’s minds these past few months –the optimistic idea of being the one with the positive story, the one that had the looming recession suit their investment needs. But is it really a good time to buy? With the recession looming, be sure to confirm job security and finance before taking the leap of faith, the choice is yours. How well you play the game, is up to you.
Wait and you shall receive:
Unemployment and economic depression is prevalent within Australia as it is globally, however it is argued that the economy is likely to reboot in the 4th quarter of this year or at the very latest the first few months of 2021, at which time we are likely to be experiencing a perfect storm for property. With this in mind, maybe take the chance and wait for the right time. Don’t worry about the ramifications of your optimism running south, wait out the recession and you shall receive.