COVID-19? Is now a good time to invest in property?
As everyone is aware by now, the coronavirus (COVID-19) is having an impact on all industries, including construction and property investment. These uncertain times have left a lot of people in Sydney and NSW wondering whether they should purchase a new property or hold off until things return to normal. This seems unlikely, at least for the foreseeable future.
Top 3 Local Choice property investment expert, Simon Wilkins from Inspired Property Group in Sydney has been on the front lines of property investing since the pandemic began and has kindly provided us with some of his best advice for navigating the property market minefield left in the wake of the coronavirus crisis.
On the inside with Simon Wilkins from Inspired Property Group
What is the state of the home investment construction industry right now?
NSW and Sydney property investors are naturally anxious about the state of the construction industry, and it’s one of the first things they ask Simon when discussing their options.
Simon says that, for now, it’s business as usual, with current and future builds still in the pipeline, underway, or moving forward. He does recommend some caution, though, because, “it’s a fluid situation that is subject to change at any moment.”
Simon assures us his clients will be the first to know about any new developments.
“We advise our clients to look at the facts and focus on certainty and the things they can control.”
Advise for Sydney and NSW landlords
According to Simon, landlords who are building, or are about to complete a build, should consider dropping their rents to attract tenants.
People are looking to save $35 to $40 a week, which adds up over six months, but the $840 will have a minimum effect on your holdings. You also have some leeway with property management fees. Negotiate a drop of around 5% and you’ll save a further $5 per week.
With the economy on pause right now, Simon says people already in the market will be able to capitalise on the rising demand and inevitable price increases once the crisis passes.
Is there any good news on the horizon?
The crisis will pass, but Simon tells us that the current situation will likely continue for the next 6-months or so.
“I expect interest rates to be cut again, maybe even another two more times.”
Simon advises his clients that lower interest rates will free up some funds because of lower mortgage payments, and make properties easier to hold, but the ease on interest rates won’t help everybody.
“Unfortunately, some people will be forced to sell-up and become renters.”
Simon’s advice for right now for property investors
When asked what people thinking about property investing in Sydney and NSW should be doing now, Simon’s advice is to get into the market with house and land/completed properties or look for properties that will be complete by the end of the year.
The biggest impact will be at the top end of the market. Simon expects the higher value properties in the $1m plus range will see the most significant drops, but smaller mortgages will be easier to hold.
“The three months hold on mortgage repayments will provide welcome relief for landlords who may be struggling.”
Simon also tells us that there are some great deals around for investors who are ready to take the plunge. With his experienced team behind the negotiations, investors should be able to get even more value out of a deal.
About Simon Wilkins from Inspired Property Group
We met Simon and loves that he “walks the talk”. In the last 5 years he has built up his own property portfolio and it’s those very strategies that Simon offers others looking to do the same.
Inspired Property Group are committed to helping their clients and partners get through the crisis and are optimistic about future property prices. For now, says Simon, we are “business as usual.” If you have any questions, issues, or concerns, then don’t hesitate to get in touch.
So whether you are new to property, looking to buy a new home or wanting to grow your investment property portfolio, Inspired Property Group is a great local choice to start a no-obligation conversation with.
Click here to see Simon’s Top 3 Local Choice profile here.
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