Before we get into this weeks blog.. a little disclaimer:
Nothing I discuss in this Video is a professional opinion or has taken any of your personal circumstances into account. This blog is for entertainment purposes only, please consider how it may relate to you in your current situation.
So what does the Corona virus mean for The Property Market and you?
Over the past few days I have had countless conversations with clients who are buying, about to settle and thinking about buying and the common theme is, what affect will the Corona virus have on the industry and what does this mean for me?
My advice to everyone I talk to is this, The coronavirus will very likely have an impact on the property market and from all the expert advice I have read it suggests this impact will likely be short term and mean that property prices are likely to decline.
With that in mind I would encourage everyone to consider the following;
Employment
If you currently work in the hospitality sector and you are getting nervous for your long term employment, or you know you wouldn’t be able to afford Mortgage Payments if we were forced into a long term isolation period then perhaps you might like to put your house hunting on hold, just until you have the certainty of income behind you.
On the reverse, a lot of my clients are working for the Government, so they are comfortable in their employment and this is not something they need to consider.
Current Equity
The other thing people with equity could consider is ‘cashing out’ their equity now should they like to buy an investment property if property prices do drop.
If you wait for the value of properties to decline and then try to get your cash out, you may just find your equity has too lowered which might mean you are not in a position to buy anything at all. By cashing out some of your ‘available equity’ now, you already have it and are ready to go should you find a bargain.
Here is a video on how to work out how much available equity you have if you want to work it out.
Another quick disclaimer, If you are considering pulling equity out to buy a investment property, you would also need to strongly consider your cashflow in case the property went unrented or your income was threatened.
The Long Term
And finally, everything I have read does talk about how the experts believe the Property Market and Stock Market will turn back around, just like it did when we had the GFC (Global Financial Crisis), however it will take time, and no one knows how much time it will take.
Should you have any questions or want to know any more information please call me on 0412862811
Next week I will be sharing 3 ways you can protect your home and life style to make sure you check that out!