Now is the time to buy!
Scott Morrison, the Prime Minister of Australia (as at the date of this publication), has announced new restrictions on social gatherings which has resulted in open house inspections and auctions now being prohibited.
The impact of this decision, in hand with significant economic turmoil as a result of COVID-19, is a sudden decline in property transactions in Queensland, and throughout Australia.
This economic turmoil has created the perfect storm for the property and financial sectors. Whilst it is a time of great distress and concern, it is important to keep things in perspective.
With all these uncertainties, it is important to focus on positive outlooks. Therefore, in this publication, we look at the reasons why buying or selling at this time of uncertainty may be much more beneficial to buyers and sellers than you may realise.
Benefits of a 'Buyer's Market'
First Home Buyers As a result of economic downturn in recent months, the interest rate is at an all-time low. First home buyers are now in a position to lock interests rates for a period of time (sometimes a number of years). This allows home ownership to be a possibility for first home buyers that otherwise would have struggled at a higher interest rate.
Job Security If you find yourself in a position where job security is guaranteed, and you have the ability to service a loan, you may find that obtaining finance approval is still possible despite the concern that the banks are tightening lending criteria. If you find yourself in this position, please do not hesitate to contact us for a referral to a lending specialist who may be able to assist you in the process of securing finance.
Decline in Property Values Whilst we cannot confirm the particulars of a decline in property value, from speaking to some of our agency referrers we note that there is reports of a downturn of property prices. If you are in a position to secure a property, this may be a perfect time to purchase as you may benefit from a lower purchase price, a higher possibility of obtaining finance and potentially a higher equity in the near future.
Searching for a Property During Isolation
Technology Before the new regulations, new home buyers were competing with each other to view a limited number of properties and the never-ending revolving door of negotiation simply meant that it was a 'Seller's Market'. Due to shift stemming from COVID-19, and technological advancements, it is now possible to conduct inspections via video-link and/or have one-on-one inspections. This gives you unprecedented access to the Agent and Seller.
First Place in the Rat Race With the benefit of not having to attend a physical open house inspection, and having unprecedented access to the Agent and Seller, Buyers are in a position to make an offer which would be on substantially beneficial terms.
Although these are uncertain times, remaining 'slow and steady' as they preach in fables will simply mean you'll come last in the rat race, ultimately meaning you will miss out on reaping the potential near-future benefits.
Property ownership is not impossible during this time, and to sweeten the deal we're now offering Queensland's LOWEST FIXED CONVEYANCING FEES.
Call us now on (07) 3209 7000 for a no-obligation phone consultation.
Disclaimer: This publication is not intended to be comprehensive, nor does it constitute legal advice. We are unable to ensure the information is current and there is no guarantee in relation to accuracy. You should seek legal or other professional advice before acting or relying on any of the content of this publication. The views and/or opinions expressed in this publication is that of the author and may not necessarily represent the views and/or opinions of Richard Hoare & Co Solicitors.
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