Investing during a pandemic – is COVID the right time to buy an investment property?
If 2020 taught us anything it is that the property market does not always follow a predicable pattern. But individual property performance can be more reliable as long as you follow the right formula.
Market confidence is high despite the uncertainty
In a recent property sentiment survey, finder.com.au reported that a staggering 67% of Australians say now is a good time to buy property, the highest it has been since the survey started in May 2019.
This level of positive sentiment coupled with strong investment buyer activity is driving up property prices in a number of locations. This is counter intuitive when we compare the impact of the coronavirus pandemic to past economic events such as the Global Financial Crisis.
Very few economists and property ‘experts’, if any, predicted that the property market would be so resilient in 2020.
So if we can’t rely on the experts to predict the direction of the property market what can we rely on?
What to look for in an investment property in 2020
What is more predictable is what constitutes a good investment property in Brisbane but you still need to do the research.
Investment grade properties have different attributes in different locations. What performs well in Sydney is different to what works in Darwin or Geelong.
If an investment property underperforms, even 0.5%, this will make an enormous difference over 10 years and will leave a gaping hole between what you could have earned in capital gains, because of the compounding nature of capital growth.
In Brisbane, we have identified 36 investment fundamentals for buying investment property selection including location, transport, demographics, rentability, potential, supply and affordability.
Why you need local knowledge and independent advice more than ever for buying an investment property
Since the start of the pandemic we have seen a worrying trend with real estate agents boasting about how many properties they are selling to interstate and overseas investors, sight unseen. Some of these investment buyers are relying solely on the agent’s market photos and virtual inspections via FaceTime to make these huge financial decisions.
Why is this an issue? Well, the agent represents the seller and their job is to sell the property to any buyer at the highest price. So why would you rely on them to give you advice? You don’t get legal advice from their solicitor so why take property advice from their agent?
There is absolutely no replacement for having someone independent and experienced assess a property on your behalf.
This is especially true in Queensland where the system differs to other states. READ HERE
|We have provided advice to thousands of investors and buyers, purchasing hundreds of millions of dollars worth of property.
We know Brisbane, we know what works and what doesn’t work. This is where our experienced independent buyer’s agents will give you the edge, when it comes to assessing and selecting a high performing investment property.
|What makes the best investment property is unique to every location. Our local expertise, extensive industry experience and tailored advice will help you chose an investment property that performs for you.
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To talk about your own plans, contact one of our passionate Property Pursuit Buyers’ Agents.