Although Covid-19 didn’t exactly start the new decade off on the right foot, there’s no denying that the pandemic has forced us to think differently and to look ahead.
Without question, its impact is nothing short of a global crisis and concern is still running high. But if there’s one lesson we can take from the history books, it’s that a global crisis typically brings about some golden opportunities.
And right now, one of those opportunities is in our ripe investment market.
For those who are counting their blessings with a steady income, and who still have investing in property on the cards, you may be quietly thinking to yourself, is right now a good time to take the plunge?
It’s a great question – and one that should start with some research, as well as a solid assessment of your specific financial circumstances and goals.
But, if you’re already starting to consider a property in South West Sydney, take it from us: it’s definitely not all bad news.
Property prices have remained stable over the past few months, making for a pretty opportune climate to secure a good deal; finding a bargain may prove a challenge, but you can count on the current stock being well-priced and ready to sell. However, this won’t always be the case if virus conditions ease in the lead-up to Christmas and property prices return to the steady increase we saw pre-COVID
This, combined with our historically low vacancy rates (where finding a tenant is taking a matter of minutes and not weeks at Prudential Real Estate), is making property investment a uniquely ideal prospect for both new and seasoned investors.
So yes, with the right strategy, you could certainly say it’s an opportune time.
Of course, when going to take out a loan for an investment property, it always pays to forecast unexpected events. After all, the very nature of investing is to be in it for the long haul to make it worthwhile.
With that said, it’s crucial to consider how your lifestyle may change over the long-term; if your job, health, family life, relationships or other factors could alter your ability to cope in an unfavourable (or worst case) scenario.
But the key to growing an investment that can withstand a future shift or downturn is to exercise some cautious ambition by saving a cash ‘buffer’ and setting this aside.
Additionally, it’s worth having a financial emergency plan, which might include a list of funds that you can withdraw from or assets that you can sell. Or, it may be as simple as cutting back on those smaller luxuries – video streaming services like Netflix, Stan, Apple TV and Disney, on which the average Australian spends $420 per year (and that’s just TV and movies alone!). Between Spotify, online club memberships like Amazon and Catch of the Day, Costco, digital newspapers and other popular subscriptions, you might be surprised at how many recurring expenses you actually have (and can reduce) if push comes to shove.
In the end, having a solid plan will be the safety net that protects your investment throughout any future crisis – global or personal. But of course, it’s always best to speak to a financial advisor first if your circumstances do change.
Ultimately, when it comes to building wealth, there is no ‘one size’ fits all – and the best time is always when it’s right for you.
After more information about buying, investing or property management? Get in contact with your local Prudential Real Estate office below!
Prudential Real Estate Campbelltown | (02) 4628 0033 | firstname.lastname@example.org
Prudential Real Estate Liverpool | (02) 9822 5999 | email@example.com
Prudential Real Estate Macquarie Fields | (02) 9605 5333 | firstname.lastname@example.org
Prudential Real Estate Narellan | (02) 4624 4400 | email@example.com