Is now the perfect time to buy a property?

The negative economic effects of COVID-19 are well-known and far-reaching, but in every downturn there’s always an opportunity to be had — and purchasing property may well be one of them.

In late September, the Victorian Premier, Daniel Andrews, announced that private inspections in real estate could recommence in metropolitan Melbourne and hinted that auctions and other restrictions would be lifted in the coming weeks, creating a brighter future for prospective buyers and sellers in Victoria’s property market.

Meanwhile, the rest of the country has seen a modest downturn in housing prices, which, according to various banks and experts, should change in the common months. In fact, Westpac has updated their home-price targets, estimating that prices will surge by 5 percent by the end of 2021, and an additional 15 percent over the next 2 years into 2023. 

This is why the majority of property investors are remaining upbeat despite the Coronavirus pandemic. According to a recent survey by PIPA, 67% believe now is a good time to invest in residential property. Additionally, 77% of investors said any concerns about potential falling house prices won’t result in them putting their investment plans on hold.

Essentially, this is because there’s been no dramatic crisis in Australia’s property market over the last few months and confidence in it has remained relatively robust. However, property prices are generally lower (especially in Victoria) and property developers and independent sellers alike still want to ensure their houses and apartments continue to sell during what is an economic recession.

Buyer incentives

Not only do you have a better chance of negotiating a good price for a property under these conditions, but developers are actively providing generous incentives for buyers.

For example, R. Corporation are offering a low deposit of just $30k for a 1 bed and a $45k for a 2 bed apartment in their latest development, R.Iconic. Not only that, but any government grants you acquire during a sale, R. Corporation will match these with an additional $35k in savings on top. Click here to read more.

Meanwhile, Neue are providing massive first home buyer incentives, with cash grants totalling up to $35,000. Click here to learn more about this incredible offering, or here to view their stunning new development in Melbourne.

Government incentives

The government continually want to install confidence in buyers, but this year they also want to revitalise Australia’s construction industry. As a result they’ve introduced three major grants this year.

The first, which was made available on January 1st 2020, is the First Home Loan Deposit Scheme. This is a government guarantee which will secure the mortgages of some eligible first home buyers with deposits as low as 5 per cent who otherwise might not be able to get a loan without paying LMI.

The second, is the HomeBuilder grant. This is open to eligible first home buyers and owner-occupiers building or substantially renovating their new or existing homes. The scheme aims to stimulate the residential construction industry, by contributing $25,000 for those building a first home or undertaking a renovation.

Third, is the First Home Owners Grant, which applies to first-time property owners who are either purchasing an existing home that has never been lived in, or building an entirely new home. The size of the grant differers from state to state, but in Victoria, for example, the government offers up to $20,000 along with various concessions on stamp duty.

Should I be buying a property now?

For those confident in their own financial circumstances, most investors agree it’s never been a better time to buy. At the moment, it’s a win-win. Not only are there lower prices and a range of government and developer incentives to chose from, but the market is forecasted to return to pre-pandemic levels in the coming months. Ultimately this situation increases your likelihood of a return on your investment.

According to one investor, Ben Kingsley, who spoke to canstar.com.au, Australia may be enjoying price growth as early as the end of this year, with most markets experiencing price growth in 2021 on the back of a stronger economy, improving employment and increasing buyer demand.

Click here to read more market insights.