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Why Now is a Good Time to Buy a Property

DATE_ Monday 29 June

BY_ Stature

With COVID-19 significantly impacting the way we live our lives, many are left wondering if now is a good time to be buying a property.

And while there’s no way of knowing how long or severe any downswing will be, analysing the last Global Financial Crisis to predict what we can expect is a good place to start.

A recent article by the REA Group states that historically, the housing market has performed relatively well after economic shocks, such as the Global Financial Crisis. It also states that although there is still uncertainty around the pandemic, recent interest rate cuts are likely to prevent the market from reaching a major crash.

Another article by REA discusses the significant growth experienced in the decade following the GFC and therefore suggests that investing in property should always be viewed in the long-term.

The below graph details the Melbourne suburbs that have experienced the most growth since the GFC:

Between May 2009 and March 2020, North Melbourne was Melbourne’s top performer with a median house price of $1,182,00. Followed by the south-eastern suburb Sandhurst, which records a median house price of $810,000.

There are many different factors that affect property growth however, according to REA’s chief economist, Nerida Conisbee, a large reasoning behind such a strong price growth could be attributed to the introduction of new developments.

If you’re looking to buy for long-term growth, it’s important to consider these growth economies.

Real Estate Institute of Australia president, Adrian Kelly, says now could be a good time to get into the market. “It makes sense to me to be buying when a real estate market is at the bottom of a cycle – I’m not suggesting that we’re at the bottom of a cycle, but we’re certainly not at the top of one,” he said.

In this market, there is also less competition for properties, especially with several state borders still closed across the country.

It’s understandable that buyers are apprehensive about investing right now, particularly if their employment has been cut. However, for those with job security, now might be a good time to get into the market. When the real estate market takes off again so too will the prices, and then it can be too late.

If you’re looking for a safer investment option, Conisbee recommends areas closer to the city as they typically have the best long-term growth; making Stature, Southbank, by Salvo Property Group, a perfect investment opportunity.

During this time, Stature’s display suite remains open by appointment Monday to Friday from 10 am to 6 pm and on weekends from 10 am to 4 pm and is located on the ground floor of 45 Clarke Street, Southbank. To make a booking, complete the registration form online and one of our agents will be in touch.

For all enquiries regarding Stature, call Salvo on 0401 347 074.