‘It’s all about holding your nerve’: Buying in a downturn
Individuals with a stable job, solid buffers and a willingness to be positive when everyone is talking doom and gloom are the real winners of the current property market, a buyers agent has revealed.
Australian Property Scout director Sam Gordon has indicated that despite COVID-19 having created a huge amount of uncertainty in the Australian housing sector, “those investors that are in a stable job position have a leg up over 90 per cent of buyers out there today that may have been put out of the market due to job loss or merely fear of the current situation.”
In particular, this presents an opportunity “for those willing to go against the masses and search for high-quality investment grade properties at below market value”.
“Property is historically an exceptional investment class, and those who invest for the long term will always do very well,” Mr Gordon acknowledged.
“If you can pick up a property now for a discounted price and hold it for the long-term, even if the market [has] dropped by 5 per cent or more, it will rebound after all this is done and dusted and you stand to make very tidy gains.”
According to the buyer’s agent, “it’s all about holding your nerve in a time like this, and focusing on the long-term fundamentals.”
He said the best time to buy won’t be when everyone is confident in the market again and everyone is talking positively, because “at this point the herd will be stampeding back into the market as was the case after the election doom and gloom passed”.
For those still not swayed, Mr Gordon conceded that “there will always be things to be afraid of when investing, but buying when there is less competition around is typically the trade-off and the way to succeed in times like this,” he outlined.
“If you are in a position to invest, get clear on your goals and what property you need next, and be ready for when the right deal pops up,” he concluded.
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