Some positive news at last is that it seems there’s light at the end of the property market tunnel.
Yesterday news was announced that finally surveyors can start surveying, valuers will again be valuing homes and potential tenants and buyers will be able to view properties whilst those 450,000 already stuck in transition can finally ‘get on with it’ as removal companies across the country will be allowed to help you move in and out of your new home as things hopefully return to some level of normality.
For property investors the last couple of months have been one of ‘chance’ and ‘pause’ as many sit, wait and reflect on trying to sum up how the market will go… Others will offer far below the asking price knowing their cash is key to a quick bargain from a distressed seller.
I always thought ‘lockdown’ was a great chance to buy property (if you had the cash) and a great time to reflect on your property goals and targets (if you didn’t have the money waiting)… With mortgage products on hold for the duration it was silly to sit, wait and wonder if, but and maybe when the house market resumes… I tended to instead take a look what was on offer at the time to get in first before the flurry which according to some has already started.
I spoke with Ryan Neagle at Prime Property Agents and he said “the first month of business was largely unaffected due to people snapping up cheap houses on the slightest of market dips” but “this month has been tougher with more people reluctant to part with their cash not knowing when everything will end” on reflection it seems those that ‘did’, got a bargain whilst those that ‘didn’t’, simply missed out on ‘buying’ opportunity again.
For what its worth, I don’t see a major market crash like in 2009 because back then banks stopped lending, now banks can’t lend you enough… The government is keen to get the market moving again and whilst sceptics maybe put off for the foreseeable they’ll eventually come around, it might take twelve months?
Investors will still be able to get a bargain post lockdown, we’ll still keep your properties coming, but be savvy, be astute, look for market patterns and look for those property types doing better than others.
If you didn’t buy during lockdown I wouldn’t necessarily rush to buy after… But I would as always ‘reflect’ on why you are buying property investments in the first place?
Is it for yield? If so then rent will always go up, your property investment will be unaffected…
Is it for growth? If so your property value will always go up, your property investment will be unaffected…
Is it to flip? If so then perhaps now is not the right time?
Whatever the market condition, whatever the property, whatever the location as long as you do your due-diligence and plan ahead and sensibly you should almost always make money from property but beware – have strategy, look for pitfalls, don’t buy because your think it’s a good time to buy… Buy because you think it’s a good property to buy.
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Daniel Peacock.