Are you wondering when is the best time to invest in property?
Some pundits say the period just after the global financial crisis (GFC) was the best time to buy an investment property, but can the same be said during a pandemic? Should you look to invest in a property now?
Investors often make the most significant financial gains in times of uncertainty, and experts are saying now is the time to invest as Canberra’s property market remains robust and buoyant given the current COVID-19 climate.
Recent data has shown that property values in Canberra rose by 2.7 per cent in June 2021, and 14.4 per cent since the start of this year.
CoreLogic’s head of Australian research, Eliza Owen, explains the COVID-19 pandemic has not severely impacted Canberra as much as other Australian cities, making the ACT one of the nation’s most resilient markets.
A vital factor to consider is the all-time low interest rates, and it seems evident there are no signs of this changing soon.
Maloney’s Property principal Peter Maloney says the ACT’s house rental prices increased by 1.6 per cent in July 2021, while unit prices have remained steady, rising by 0.6 per cent.
“There’s still a demand for rental properties due to stable employment within the public service, and businesses which support government departments,” he says.
“The job market in the ACT has been quite stable, and the employment rate is rising. In June, it was announced that the ACT’s and Australia’s unemployment rate decreased to 4.9 per cent.”
Peter says there are a few additional considerations to make when purchasing an investment property during a pandemic.
“Invest in a house,” he says. “The rental rate increase of 1.6 per cent for houses during the past year would indicate this type of property is a solid investment.
“COVID-19 has made it very difficult to evict tenants so pick an ideal tenant when you’re looking through the applications.
“An ideal tenant works in essential services or resilient industries such as healthcare workers or web designers. You want someone who works full-time and in an industry that can operate and/or acquire more business in a lockdown.”
As well as considering the tenant, Peter feels it is also vital to consider the property’s location.
“The location of a property has always been an important consideration when you’re purchasing a property for personal or investment purposes,” he says.
“COVID-19 has shifted consumer tastes. People still want apartments in central locations to walk to work, and are nearby cafes and shops. However, they also wish to access green space and nature.
“Apartments near a park, a complex with a nature breakout, or a balcony that fits themselves and their plants are ideal.
“Choose a property that people can work from home in, is near government departments and/or green spaces.”
Peter also recommends choosing properties with an X-factor.
“Find or choose properties with features that will increase your investment during the long-term,” he says.
“Properties with multiple occupancy, such as duplex properties or properties with a granny flat that offer multiple occupancy, are a great investment.”
For more information, visit Maloney’s Property.
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