Astute buyers will act now!

When the market is uncertain or slows down – as is the situation in Melbourne right now – smart buyers act!

Instead of being negative, headlines such as “Lower clearance rates!” and “High volume of properties on the market!” can be triggers for buyers and investors to take to the marketplace. Especially when key, underlying economic factors are still favorable. In summary, astute buyers know that there is a good opportunity hiding behind the negative talk.

Currently, the property market is taking a hit in a lot of areas simply because of uncertainty. Another way of looking at it is to reflect on the typical 10-year cycle property. The median house price increases we have seen over the past decade are not sustainable. A “slow down” or plateau is to be expected. Nothing would suggest there is a “bubble about to burst”, although none of us have a crystal ball. What we do know is that, as a buyer, now is a good time to do your research, gather your information and step up to the plate.

Purchasing in an uncertain market takes courage, but the rewards can be high; a bit like capitalizing on a “bear run” on the stock market. Advisors will always recommend a medium to a long-term approach to investing and this applies to property investment as well.

Real Estate Graphic Design Melbourne of CEO Enzo Raimondo recently made the following comment on the market: “Some commentators, often with an air of expectation who use statistics to suggest an imminent collapse, need to take a longer-term view and look beyond what happened in the market last weekend or last month.”

Paul Lynch - Real Estate Agent - Property Brokers Palmerston North

“Like any broad-based market reliant upon the participation of thousands of people each week, it is bound to fluctuate over the short term, but due to most household’s wealth being  in housing and the fact that most people only buy and sell infrequently, what really matters is the medium to long term performance.”

There is value in coming back to the undeniable fact that our population is growing faster than our housing supply. At the end of the day, people need to live in houses and Melbourne’s supply is struggling to keep up with demand. Our tight rental market supports this with vacancy rates still under 2% across the city and outer suburbs.

Fadi Saad, Director of Sanctuary Lakes Real Estate made the point that “the current market offers opportunities for buyers who, if they do their homework, may have a once in a decade chance to buy and buy well !”

Real Estate Market Trend 2020

What Is The Trend Of The Real Estate Market?

A significant fall is seen in the real estate trend in the residential market these days as a negative sentiment of investors is seen due to the spread of pandemic Coronavirus all over the world. However, the investors and buyers, who were not able to make decisions earlier, are now searching for homes these days due to a fall in the housing prices.

Will housing prices go up or down in 2020 in Australia?

There can be a negative effect on the housing prices in 2020 in Australia as the pandemic of COVID-19 has greatly affected the entire economy of the nation. Though Federal bank has cut down the interest rates many people have lost their job in this year due to the outspread of Coronavirus. So the investors and buyers have to handle several other issues along with focusing on buying houses.

Is 2020 a good time to buy real estate?

Yes. It is believed that 2020 is the best time to buy real estate anywhere in the world. The main reason behind it is the effect of Coronavirus on the global economy. The global housing market is at an all-time low this time due to the lack of liquid money in the market. Such a beneficial situation for real estate buyers may not be seen in the near future.

What does it mean for the housing market to crash?

The increasing prices in the housing sector have increased speculation, excited spending, and demand in the past which has created a bubble in the housing market. Now this bubble is going to collapse at any point in time due to a steep drop in housing prices caused by stagnation or decreases in demand as well as an increase in supply due to COVID-19. It will result in a crash in the housing market.

Will the housing market crash in 2022?

A crash in the housing market cannot be predicted in 2022 as the economies will be opening up steadily after the pandemic COVID-19. However, no hike in the housing market can also be predicted by the policymakers in 2022 due to a record drop in the mortgage rates is likely to remain during the years 2020 and 2021.

Is there a property crash coming?

Yes, a crash on the real estate market is expected because only a cut in interest rates is not enough for a boost in this sector. The outbreak of Coronavirus has increased unemployment throughout the world. A large number of people have lost their jobs and the world economy has been affected greatly due to the COVID-19 pandemic. Even well-to-do people are selling their properties at a very low price to cover up their daily needs

Is this a good year to buy a house?

According to economists, though 2020 is not an exceptional year for the housing market still it can be a positive year for the home buyers as well as renters. If you assess the real estate market on the basis of the trends in 2019 then it will be wrong. Covid-19 has greatly affected the prices in the housing sector. So if you can buy a house this year then it will be good for you.

Should I buy a home now or wait?

If it is not necessary for you to sell or buy a property instantly then you are advised to wait for a few months. During this time the price of homes you are interested in buying may fall considerably due to the effect of Coronavirus pandemic on the economic conditions. Moreover, the decline in the prices of real estate can also match your financial conditions in the meanwhile.

Why You Should Sell Your House in 2020?

If you have to sell your house in 2020 to meet your financial needs then it can be the best time to put your house for sale on the market. If you are not able to decide about selling it now or next year then you should keep in mind that it is the best time to sell it rather than waiting for the change in circumstances and let the time pass away. In falling economic conditions a better situation than today cannot be predicted.

Real Estate Invesment

What is a good ROI for commercial real estate?

Earning 6 to 12 percent of what you invested is a good profit when investing in Melbourne commercial real estate properties. Some good examples are restaurants, laundromats, and salons.

Who makes more money commercial or residential real estate?

Commercial real estate agents usually make more money than their residential counterparts. One reason for this is that there are more buyers for commercial than real estate. Also, commercial properties are unique given their location and lot area. On the other hand, there are many residential properties that are basically the same thing so it would be hard to say how one is different or better than the others that are near it.

What is the golden rule in real estate?

The golden rule in real estate is to treat others the way you want to be treated. In the real estate industry, it is best to build connections with people from all walks of life. You never know when they would want to buy from you. After that, you must keep in close contact with them. Yes, better check up on them once in a while.

How do you work out property yields?

All you need to do is to divide the property income by the value. What you are going to get will make you realize whether you are earning or not from the property investment.

Is real estate is a good investment?

It is a great investment but it may be a long time before you profit from it. For example, you buy a property that is worth 1 million then you rent it out for a hundred thousand. Thus, it is going to be a long time before you would get your investment back. When you finally do, that is the time when you will finally profit big from your investment. It may be a long wait but it will be worth it when you get what you have been waiting for.

What are the 3 types of real estate?

The three types of real estate are vacant land, residential property, and commercial property. When all those things are being sold, the commercial property will be the most expensive one but it is also the easiest one to sell. Of course, you would need to talk to the right people in order to get a good price for it.

What are the two main types of property?

The two types are personal and real property. The first refers to what you own like a house or a tall building. The second refers to what you don’t really own like a shed or a barn.

What is the difference between property and real estate?

Real estate refers to a set of things while property refers to those same set of things with all the legal documents attached to it. For example, real estate refers to a condo unit while property refers to the condo unit and all the legal documents that prove who the owner is.

Real Estate Agent

What does it take be a real estate agent?

You need to have good communication skills. After all, you will be talking to people all the time. You would need to be good in convincing people to buy the properties you are selling.

Why do most real estate agents fail?

The reason why most real estate agents fail is that they don’t have the patience to succeed. This job certainly requires a lot of patience. You can go through your first few months of being an agent without earning a penny. There will come a time when you finally sell something and you suddenly ride on a momentum. That is when you should keep going and you will be glad you did not quit before.

How difficult is real estate?

It is very difficult since you are selling something that costs a lot of money. No matter how much you convince one person, that person can’t buy what you are selling if he does not have enough money to do so.

Why do realtors quit?

Realtors quit when they are unable to sell properties for a long time. Since realtors don’t get any salary unless they sell something, that won’t be good on their part. It would especially be bad for those who have families. One reason for realtors quitting is that nobody is looking to invest right now. Also, the property the realtor is selling may have a lot of good competition.

What are the pros and cons of being a realtor?

One pro of being a realtor is that you will be able to control your time. You just need to set up your day’s meetings in the right manner. One con is that you never know how much you will be earning in a month or even a year. There may be a time when you could get good income but there will also be times when you could not earn a penny in months. Yes, luck is definitely involved in the real estate industry.

What brings the most value to a home?

The interiors home design bring great value to a home. When buyers see the home has nicely painted interiors and the kitchen look great, they would be glad over that. It would also be great if everything is working inside like all the lights and appliances.

What is the cheapest way to buy a house?

It is through cash basis. Thus, you can just withdraw from your bank so that deal is done. It is never good to do it through bank financing as you will be dealing with inflatable interest rates so the price you may pay them may get higher each year.

How do I start investing in real estate?

One good way to start would be to invest in something that is not that expensive like a condo unit. After that, you can have it rented out. Once you have saved enough money, you can either invest in another condo unit or a bigger investment like a house.