Since the Corona Virus has increased throughout every country everyone has a few questions about what the economy will do and what will property prices do. Unfortunately, prices will be negative as prices will go down. There has been a lot of talk about the property market gathering momentum with all the interest cuts the Reserve Bank has made to ease the credit conditions to purchase properties.
The Reserve Bank cut rates as soon as the news broke out about the developing coronavirus. The reason the bank was doing this is because the coronavirus was already affecting the economy negatively. The government has also released a stimulus package to help aid and decrease the negative effects of this virus.
What does this mean for you?
If you are looking to buy and have a secure job with a secure income, then you are at an improved position as the overall market will be/is weaker. The coronavirus will take out a portion of the buyers those with a wait and see approach, reduced income and unable to buy.
If you are looking to sell you need to understand and appreciate that the economy will be weaker, and you might not get the same price that you would have 6 months ago. So if you are going to sell then you will have to be flexible with the price or defer selling for a while to cushion the price fall until the economy bounces back.
But there are still positives to come from this as there is to be an expected rebound in the second half of this year or by at least 2021 which where people will recover, and the economy will start moving again.
But for the time being we are all just going to have to endure through this small time and even come out of it better than going into it if you invest in the right areas.
If you would like to have a talk about investment strategy give Chris a call on 0434 449 455.