Property owners leveraging home equity to ‘get further ahead’: NAB
A new research showed that property owners are unlocking the equity in their homes for a range of reasons but with the s...
An Aussie property investor has unveiled how investing during the COVID-19 pandemic is set to pay off in spades.
George Markoski said that while many would think that buying during a pandemic, coupled with a recession, would be risky, he’s finding the property landscape to be well worth exploring at the moment, particularly in Queensland and Adelaide where he’s most recently bought.
“I hear so many would-be investors declaring they are going to sit things out and wait to see what happens and putting their investing plans on hold. But with some careful research and an understanding of not only the ‘fundamentals’ of property investing, but also the statistics which are often overlooked, now could be the very best time to invest,” Mr Markoski said.
“Research is key. During COVID, most properties are likely to go down in value, but regardless of the now, properties go up and down; it just means that now there are less going up and more going down – but don’t be tempted to use fundamentals over statistics. It’s about looking at the demand/supply ratio and the market cycle timing in an area.
“If prices have recently risen, you don’t buy there as the market has already overperformed. And when a market overperforms, you don’t want to be there. The aim is to buy where there is still demand, not purely an underperforming market, which could be misinterpreted as about to rise; there needs to be underlying demand, too.”
Mr Markoski advised other investors to “avoid the common mistake of being tempted to look for bargains”.
“If you’re getting a bargain, you should be worried,” he said.
“With all the talk of buying ‘under market value’ properties, it could be an enticing option, but if it sounds too good to be true, it generally is. Stick to the statistics and research and don’t automatically assume that COVID is a reason to turn off your dreams of investing.”
Mr Markoski’s top tips for buying now:
1. ‘Time in’ the market, is better than ‘timing’ the market – You will never find the perfect time to invest.
2. Property prices double every 10-12 years, but after every recession comes a big bounce back such as in 2008 with prices accelerating by 20-40 per cent within two years.
3. Australia is in one of the top four countries predicted to have a property increase post-COVID, along with New Zealand, Singapore and Israel.
4. Buying during COVID is for the long-term strategists, not those seeking to get rich quick.
5. Rental vacancy rates in Australia have fallen during COVID.
Property refers to either a tangible or intangible item that an individual or business has legal rights or ownership of, such as houses, cars, stocks or bond certificates.