With the most recent global events shaking the very foundation of the Australia that we know, you may be feeling uneasy, stressed, or uncertain about how things are going to play out in the months (and possibly years) ahead. The fundamental changes to the way that our society is functioning in light of the COVID-19 pandemic has shone the light on the property sector, with many investors wondering what to expect, and the best course of action from here.
The Coronavirus Australian Property Market Update
When looking to make educated predictions about the state of the property market in Australia, and what can reasonably be expected in response to COVID-19, it can pay to check past trends with historical data to inform our decisions. What we’ve seen in the past is that the housing market differs significantly from the share market, and past recessions haven’t necessarily seen the same effects reflected in the housing market. The property market has also been seen to be more robust, in part because of the relative slowness at which properties can be sold off in keeping with lower number of buyers in the market during times of financial stress.
Image credit: Corelogic
What we are being told is that while the next 6-12 months, or possible longer, are likely to see Australia taking a significant hit in terms of job security, lending serviceability, and the property market, that this is likely a temporary downturn and property value is likely to bounce back in line with the return of a more positive Australian economy at a later date.
In the long term, advice for buyers looking to enter the property market at this time is to err on the side of caution and take a realistic look at their financial circumstances, and whether they are in a position to purchase a property as well as afford the costs of daily living given the uncertainty with employment stability. If you are fortunate enough to be able to look at growing your property portfolio in the coming months, it’s likely that reduced buyers in the market could make it possible to secure more affordable purchase prices than in previous months in some cases, although economic shocks have not necessarily led to a fall in housing value based on historical data.
Managing stress during the COVID-19 pandemic
In times of uncertainty, mental health can be affected in line with increased financial stressors and unstable job security. Social distancing and physical isolation from others adds an additional level of stress that we haven’t experienced before in our lifetime. It’s important to put in place safeguards to manage our emotional wellbeing and maintain a positive mindset. Expert advice includes undertaking some of the following steps that can help:
- Stay connected: Phone calls, video chat, messaging, in person interactions within the public health guidelines, and engaging on social media can all help
- Plan your space and stick to a routine: If you are working from home craft yourself an office space that is organised and inspiring, and stick to a basic routine for the day, especially when it comes to your sleeping habits
- Limit information overload: Having the news on 24/7, constantly scrolling for updates, reading negative stories. Try and give yourself some down time from the stream of information, and include positive input in your day
- Eat well, and exercise: As much as possible try and prepare healthy meals and snacks, and be active in some way everyday. Get some fresh air and sunshine if you are able, and remember to drink enough water. Diet and exercise are known to directly impact on mental wellbeing.
If you are struggling, know that there is support available. Find out more here.
Support for home owners
Those that are concerned with mortgage payments in the coming months can stay up to date with the government support measures and assistance options here. If you would like to discuss your options for mortgage lending for a dual key home at this time, please contact our mortgage broker for an obligation free phone call to discuss your options.
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