HUGE (but short) window of opportunity
Well they always say that 24 hours is a long time in real estate, and in this case going from a seller's market to a buyer's market in 3 weeks is very reminiscent of what happened previously in the Global Financial Crisis.
But understand, the year after the GFC, property went up 13.6 percent in 2009, and then in 2010 it went up again by 10.3 percent. This crisis won't last forever, yes it will cut deep but there will be opportunities for the smart and courageous.
If your employment is secure, and you are looking at upsizing, getting into an investment property, or just trading into something else over the next 3 to 6 months, there is no better time to do it.
The upper end of the market will no doubt have a lot less to choose from, and its marketing method for sale will be off market only, but this is where there will be distressed sales and decent price drops, maybe in the vicinity of 5, 10, and 20 percent, and maybe even more in the real upper end of the market.
The reality is that anyone selling their property at present, or in the near future, is not there to test the market, they are there to sell.
Buying an investment property is always about yield and capital growth. The yield always starts with how much you purchase the property for from day one, and that's why yields will be up because investors will now be purchasing properties at a lower price than a month ago.
In the blue chip areas, tenants will be stable moving forward, and there will also be a lot of people that were going to buy but can't afford to do so now, therefore they will fall back into a rental situation.
PK'S Sydney Property market predictions
Once we see any rays of sunlight, be it the virus curve is flattening, a vaccine has been found, that means you have missed the bottom of the market.
Don't ever try and pick the bottom of the market for anything! At the moment vendors are motivated, agents are motivated, interest rates are the lowest ever on record, massive stimulus packages are being introduced, and if your job is secure and you are cashed up… the opportunity is wide open!
My prediction over the next 6 months is 5 to 20 percent price drops for certain properties in certain areas. I then believe from September 2020 to December 2021, we will see massive property price rises of 20 percent in certain areas of the Sydney Property Market. So basically whatever the market loses in the next 6 months, it will make that up very quickly in the following 12 months. Therefore, we're telling our clients to buy in the bargain months right now as you could be looking at huge capital gains in the near future.
PK'S Hot Property tips
In this new market you will need our Buyer's Agency Services more than ever. With property inspections by private appointment only and should you try and do this house hunt yourself, you will find it near impossible as agents will be qualifying you hard before they get in their car to show a property. When you are registered as one of our clients, the agents know that you are a real VIP buyer, and you will find getting through private inspections to be no problem at all. Also the huge majority of property will now be off market because vendors will not risk spending marketing money, styling their houses etc etc and they will just ask agents to show off market buyers only. Also with distressed sales and hygiene purposes, confidentiality is the most important thing for vendors moving forward.
And most of all in this market, a great Buyer's Agent should be able to work out what the real price of the property is in this erratic marketplace, and then negotiate away their fee over and over.
Call me today for a confidential chat in regards to helping you purchase your next home or investment property. Peter Kelaher 0419-200018
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