The COVID-19 outbreak has caused setbacks within the housing market in countries all over the world, including within Australia. Thankfully, swift efforts to contain the virus have meant that our country has been relatively quick to recover. Yet the future of the housing market remains difficult to predict. Many homeowners and property investors are wondering what the future of housing in Australia will look like, and contemplating whether to sell or rent their property in 2020.
We’ve considered the benefits of selling and renting to help you decide what your next step should be. If you’re stuck deciding whether you should sell or rent your property this year, read on!
Should you sell your property?
One of the most Googled questions in Australia since the outbreak began has been “how will coronavirus affect house prices?” And while the impact was initially negative, things are moving quickly. Since the outbreak has been contained in Australia to a large degree, we’re starting to see far more positive signs of an uplift in the market.
Historically, financial crises experienced in Australia have had a relatively minimal impact on real estate prices. All thanks to the efforts of our government over the years to minimise fallout with economic stimulus packages and other initiatives.
Homeowners also need to consider the unique opportunities this time can afford them, depending on their individual circumstances.
Record-low interest rates and more lenient lending is providing opportunities for many, with a multitude of new buyers entering the market. For first home buyers, this time could present a unique opportunity to break into the market. More people are now entering the market as investors, as property is seen as a safer investment than shares in the current climate. This lift in the market, in turn, gives existing property owners ample opportunity to sell or upgrade to a more expansive property.
With some property owners holding tightly to their properties, there are also fewer listings, which means far less competition. This gives property owners in certain areas a fantastic opportunity to fetch a good price when selling.
If you are unsure whether or not to sell your property or have questions about the sales process, for instance, how to respond to low ball offers, Boutique Property Agents can help. Our agents are trained negotiators and will guide you through the process and work to get you the best possible sale price.
Should you rent your property?
When it comes to considering whether to sell or rent your property, not all homeowners are ready to sell. If you’re not currently thinking of selling, leasing can be a great way to earn some extra income or simply save for the future. This unprecedented time has left many of us with financial burdens so leasing can help ease financial strain, putting you in a better financial position.
If your property is currently unoccupied, you’ll want to ensure that you lease it without delay. To ensure you can lease quickly, research the current rental market and be well aware of what kind of rental rates you can expect to achieve for your property. Advertising your property with a starting price that best represents value can mean the difference between your property being listed for days, weeks or even months. Be aware of the competition and demand in your area for similar properties.
Be prepared to be flexible. For instance, if your property is furnished, be open to removing furniture. Not everyone will be looking for a furnished home.
You may even want to consider some flexibility when selecting your ideal applicants, for instance, applicants with pets. By excluding certain groups of people in your search for tenants, you might delay your property being occupied for weeks at a time, resulting in lost income.
For more advice on whether to sell or rent your property this year, contact Boutique Property Agents to discuss your options. We’ll be able to offer advice on what kinds of opportunities this changing market can present, and what the best options might be for your unique situation.