When looking at investing in property for your future, we all need a little reassurance on whether it is the right time for them to buy an investment property or not. We often hear questions like “Should I wait for prices to drop further?” or “What if we fall into a recession?” While we often joke that, no one has a crystal ball to answer these, we would like to share our view on the current health crisis in the country and how it is affecting the current property investment climate.
It is normal for anyone to worry with news of the recent stock market crash, social distancing leading to some workplaces and major events being suspended, and even talks of a possible recession. It doesn’t help that various media outlets feed people’s imagination and have led to panic and loss of common sense among the population.
Obviously we don’t want to make light of the current Coronavirus scare, and completely recognise that it is a tragedy for some, but I am also certain that we shouldn’t follow everyone else who thinks the world will come to an end. Even if the economy does experience a downturn, we are likely to recover after the second quarter of 2020. History shows that setbacks like this are temporary and we can find hope in the old saying that “this too shall pass.”
While there is a possibility of a recession and rise in unemployment, the government is already taking steps to prepare for the downturn with proposed stimulus packages. Remember that we have survived Ebola and SARS in the past, so we should remain optimistic that this blow to the current economy will be short-lived.
Even in times like this, our basic attitude and approach to investing in property should not change, bearing in mind that it will always be a long-term investment and we cannot let ourselves overreact to pandemics like this.
Aside from the timing and economic trend, we must also keep in mind the other factors involved that are fundamental to property investment, such as demographics, supply & demand, finance, etc.
You may find it hard to be optimistic while the rest of the country seem to be caught up in panic, but past economic downturns have always been followed by a rise in property values. Recovery will eventually see record low interest rates, a surge in immigration and drop in construction – which is related to the supply & demand factor. If anything, it is actually an ideal time to start looking into a property investment.
So what should you do?
For one thing, don’t sit on the fence like many others and miss out on the opportunity. Don’t let yourself be convinced by the media hype that the best thing to do now is absolutely nothing the saying.
If you have the equity and finances organised, start the journey and consider your options. The crisis has created a scenario where there are more sellers than buyers, and you could now get a property for a price that would not have possible in 2019. Sellers will be more likely to settle for reasonable offers instead of waiting for the market to boom again.
In the years to come, you will look back at the crisis caused by the Coronavirus in 2020 and remember it as a valuable lesson in acting at the right time.
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