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‘Great buys’ available for opportunistic investors
If you still have an income, and therefore an ability to make plans despite the current pandemic, a CEO has advised looking to jump on any potential investment opportunities available.
Speaking on a recent episode of Smart Property Investment’s sister show, the nestegg podcast, the founder and CEO of Upside Realty, Adam Rigby, revealed that while we’re in “a period of relative stability right now”, what we don’t know from an overall economic point of view is what will happen when JobKeeper ends.
“What happens? Will there be a large number of businesses that struggle?” he queried.
“That’s the speculation that the industries are talking about.”
“We always see a lot of unemployment build at that point, and certainly the banks are expecting that unemployment will rise up 10 per cent, which is above where it is now,” he outlined.
If that is the case, “then you may get forced sales or distressed sales”, according to the CEO.
“That means that yes, definitely, there will be some price reductions.”
But he also conceded “that all the markets are a little bit different, so it really does depend where you are”.
“That’s where a savvy buyer, if they know the market – they’ve been monitoring the different markets and they’ve seen ‘ah Melbourne’s been hit particularly hard’ – they might be able to snap up a bargain in Melbourne, as an example.”
For anyone who is cashed up or has the resources, Mr Rigby said, “I would definitely be looking for buys.”
“Come the next six months, [there] will be some, and I think it could be anything from new developments through to high density,” he offered.
According to the CEO, new developments and high density “will be hurt the most”.
But he also highlighted that potential investors must “be smart about where you buy”.
Advising property purchasers to buy high-quality stock, Mr Rigby warned: “Don’t get caught up into buy[ing] something that’s been hit hardest on price, because usually there’s a reason.”
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“Keep your powder dry,” he warned.
“Try to make sure you buy high quality, and if you can get something that’s 5 to 10 per cent off the normal price that might have sold pre-2019, that might be a great buy. Look for those in the coming six months.”
“If quality stock comes up, do jump on it,” the CEO offered, stating that smart advisers will talk about quality over timing.
“Speculators generally get it wrong and picking times is always hard,” Mr Rigby conceded.
“We’ve got to keep a level head about these things, and also look to your opportunities,” he continued.
“Picking quality is easier – so I would always try and err towards that.”
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