Have you ever wondered what 2020 would have looked like without a global pandemic? COVID-19 is changing the housing market, but what would property prices look like if it didn’t happen?
Vacations would have been taken. People would have come and gone to work like… well, normal. Money would have been spent.
There wouldn’t have been a toilet paper crisis in Australia, the UK, the USA, Hong Kong, and other countries. There would have been no need for stylish or trendy face masks, and only a small percent of the population would have been able to work from home.
As lockdowns surge in various areas across Australia, people are recognizing that they like working from home. Working from home has its challenges though, and that is actually good news for investors.
Why? Because people are realizing that they need more space if they are going to be forced to remain in their homes. The desire for more space means people are ready to move.
A Rapidly Rising Market
If you own a number of investment properties and want to sell them rather than rent them, you can thank COVID-19 for an increase in housing costs.
Without the pandemic, housing prices were estimated across Australia to rise between 9 – 13% with one area maxing at an increase of 19%. However, largely in part because of the pandemic, housing prices are going to see an increase of 20 – 26%.
If you’re looking for your first investment property or another one to add to your monopoly, now is the time to buy! We can help!
Why now? Interest rates are still low, and the full effect of the housing market price increase hasn’t struck. Now’s the time to buy and either rent it out or flip and resell it.
Regardless of which you decide to do, now is the time to invest in property.
Now is the Time to Invest in Property
We’ve all heard the saying about the rich getting richer and the poor getting poorer. Unfortunately, because of the pandemic and all of its effects on the economy, this saying is becoming truer than ever.
The Covid-19 property price premium will act to widen the housing wealth gap.
Brendan Rynne, KPMG chief economist said, “In terms of negative outcomes, it has a distribution effect where those who own get richer, and those that don’t own get left behind even more.”
In other words, Australia has a two-speed market. Those increasing will continue to increase and those decreasing will continue to decrease. We want you to increase!
There are two streams of the economy running concurrently. In one, many people are struggling to make ends meet, and in the other people are financially flourishing.
What this means for the property market is that despite the current economic climate there are still some suburbs where the average residents’ wages are still growing strongly. These areas make for an excellent place to purchase investment property.
We Can Help
Ready to discover how much you could save on taxes with an investment property? We can help! At OneCorp, we combine your vision with our knowledge. We’ll help you find your dream property while holding your hand through the whole process! Getting started on your investment property journey has never been easier:- We start by helping you set clear goals and objectives as to what you want to achieve through property investment.
- From there, we run the numbers through proprietary software to accurately assess exactly what you need out of a property portfolio to achieve those goals.
- Lastly, we find the perfect property to make those objectives a reality!
