Covid has had a huge impact upon all aspects of Australian society and the ramifications will probably be felt for years to come. The property market has not been immune from its effects.
It has been particularly difficult to gauge exactly what the long term effect of Covid will be on property, but it is important to remember that property investing has proven to be a secure investment over time. There will be highs and lows with any investment portfolio and those peaks and troughs are likely to be a little more volatile in times of uncertainty like now. However, the fundamentals of investing in property will remain the same.
The market, in some respects, right now could be described as subdued and there may be some potential bargains available.
When keeping an eye to the long term, research is critical. Interesting developments that may affect long term investment decisions include the “work from home trend” which has seen some movement to country and outer suburban areas and the potential changes in demand for office space in the central business districts of capital cities. Do your homework and go into any investment decision with your eyes wide open.
It is also worth remembering that the property market has led Australia out of recession previously, being one of the first sectors to recover.
If you need to borrow to finance your investments, you will probably find it necessary to jump through a few more hops than you did prior to Covid. It is in your best interests to obtain pre-approval prior to entering the market and you will have to be prepared to prove to the lender that your capacity to repay is watertight. If your investment will be reliant partly upon your salary, the lender will most likely seek proof that your employment is secure.
While there is a lot of uncertainty at present, and doubts are a natural thing to have in the current climate, now might be the perfect time to expand your property portfolio, provided that you have the right support and advice.Australian Finance Hub can help you to sort your priorities and arrange finance that is going to support your long term objectives. We’re here to help you to make your property investment choices and financing as smooth as possible. Call us today to discuss your needs.