Why Australians are optimistic about buying property in 2021
What a year 2020 had been. It was indeed a wild ride, and so many of us found the past year to be one if not, the most challenging time ever. Businesses had to close down, jobs had to end – plans were halted. But despite all these challenges, it’s a good thing that there remains optimism.
According to a new survey, two-thirds of Australians are positive about buying property this year. This is considered the highest figure in terms of interest since 2019. Doubts about the property market have seemed to disappear and 23,000 survey participants are finding that right now is actually a good time to make investments, particularly, buy a property.
In April last year – back when the pandemic caused so many lockdowns to happen in different parts of the world and the worst recession was expected, not a lot of Australians thought that investing in property was not a good idea. The impact it had on the economy made so many people doubt investing.
Cut to 2021, the latest survey showed that property values are expected to increase up to 44 percent from 18 percent last year.
According to analysts, things are definitely looking up for the property market. Home prices are currently rising, and out of 88 regions, only two recorded falling. However, areas situated in Sydney and Melbourne could continue to fall this year if national borders remain close. This is due to the decrease in immigration and international students who are looking into moving close to universities. The unemployment rate is seen to peak at a much lower level compared to what was initially anticipated, but there are still unexpected factors at play that could change the atmosphere so there is no room for complacency.
Last year, the government was able to create stimulus packages to support those who have been affected by the pandemic. However, these support packages are meant to be temporary and shouldn’t be seen as a long-term option. Policy mistakes are possible to occur as well, which is why it’s important to be alert for any changes. If any changes will be done by the Reserve Bank and federal, state, and territory governments, or in case the support would be eased, it is necessary to do it gently to prevent economic downturns.
Yes, investing in property is a lucrative investment, but buyers also must understand that it’s a long-term commitment. When the JobKeeper program ends in the second quarter, a muted effect on the property market is also possible. Experts are saying that their number one advice for buyers is to not rush and to not delay either. Wait for that opportune moment where they can snag a cheaper property.