Buying a House During Pandemic and Financial Crisis

Don’t Kick Them While They’re Down; Buy Them

“All that glitters isn’t gold.” Is a new quip on the lips of investment experts lately; as they’re now suggesting that upgraders focus more on location when choosing their new properties rather than the ‘flashy’ popular properties they would normally trade up to.

They’re so sure the next 12 months will be a buyers’ market in Western Australia; they slapped a name on it. It’s the Year of the Upgrader!

This rings quite true if you’ve kept your eyes on the markets as of late. Gavin Hegney has been. As a property valuer he’s noticed the change in those hard-to-buy-into Perth neighbourhoods. The trick is not getting trapped by the new flash elsewhere, but noticing those older just as good homes – that are down in price!

“If the difference between a basic home in Cottesloe and the same in Duncraig was $700,000 where would you go?”

“Smart money is on the location now; not the home. The prices are lower, making it easier to get into these prime locations!”

In the future Hegney is sure that some of the older more accessible entry level properties in areas like East Fremantle or Wembley Downs that now sit around the $550K mark, will show capital growth near 10 per cent as early as the 12 months from now.

He can’t stress enough. “These better suburbs are accessible now; they won’t stay this way long. Don’t upgrade what you’ve already got; keep the same home, but live in a better neighbourhood.”

“If you wait, these opportunities could be gone; and you’ll be priced out.”

New owners in these sought after areas aren’t the only ones doing some upgrading lately either. Hayden Groves; President of the Real Estate Institute of WA has watched the extravagances and expenses grow in those sitting in the $750K+ bracket.

“We’re changing how we choose homes.” Groves thinks this could be a result of too much reality TV.

“We want the ‘perfect’ house, it has to have everything. We’re getting snobby, less so for where we live and more about WHAT we live in.’

‘We’ll never be able to afford to do this in Nedlands, so let’s look somewhere cheaper.”

The managing director of Momentum Wealth sure doesn’t think that way. Damian Collins says that with low interest rates, and the Perth market in the shape it’s in; now is the time. Get into those great neighbourhoods; and buy those older homes. It might be time to pay a visit to your trusted mortgage broker!

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