As COVID-19 has spread around the globe, governments and authorities have been forced to take drastic measures in order to respond to the outbreak, keep people safe, and attempt to safeguard their economies for the future.
The virus has had an unprecedented and long-lasting effect on the lives of countless people and its economical effects will also be felt for many years to come, with the Australian share markets seeing their worst declines since the days of the Great Depression.
It's only natural that people all over the country, especially investors, are feeling the unique levels of strain and pressure induced by such a traumatic and previously unheard of situation.
Property Retains Stability
Interestingly enough, however, while shares have collapsed, the nation's housing market has remained relatively stable during this period of crisis, without a great deal of disruption, suggesting that property investors may not have such great need to fear, after all.
While the All Ordinaries Index has been dropping like a stone, residential property investment suddenly seems safer and more secure than ever before.
Property investment has always been regarded as a safe choice, particularly as the values of houses and other forms of property only ever seem to rise, and this 'safety factor' is attracting more and more shrewd investors towards residential properties as this turbulent time.
Rising Levels of Interest
While many investors around Australia may feel uneasy during this time, others are seeing it is a money-making opportunity. As history has taught us, a lot of money can be made even in the most difficult of times.
As more and more people sell off their shares and seek to invest their capital in more secure and stable assets, the interest in residential investment is rising, with low-interest rates and relative market stability just a couple of key property-specific advantages appealing to shrewd investors around the nation.
Of course, the market will feel some minor knock-on effects due to the major economic shift induced by the pandemic as overall economic growth begins to decline and homeowner confidence temporarily decreases, but if there's one thing we've seen time and time again from the property market in Australia, it's that it always bounces back.
Even as recently as 2019, when experts were predicting major home price crashes in the subsequent months, housing remained strong, the Sydney and Melbourne markets exploded, and sensible investors enjoyed favourable returns on their investments.
Mortgage repayment relief, stamp duty reduction, and incentives for first-time buyers are just a few possible incentives the government may introduce to stimulate housing market growth and save the market from a catastrophic crash. With these aids in place, the resilience, resistance, and fortitude of the property market will shine through once more.
Buyers Club members have access to the best support and advice available in real estate investing. We can help you to not only last the down market, but thrive in it and come out the other side not just secure, but profitable and with a boosted portfolio ready for growth.
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