There’s a massive cloud hanging over the entire world as of late, and it all has to do with that not-so-little virus going about. The novel coronavirus, the one that causes COVID-19, has disrupted the way we live and work globally, and it’s hard to see a silver lining in the wake of the barely-restrained panic that many of us are feeling.
The truth is, though, if we can see beyond that right now, there are plenty of opportunities to be had. One of the biggest of these is in the real estate sector, especially if you’re looking to sell your property. You’re not alone if you think that the idea of selling a home during one of the worst pandemics in modern history seems a bit insane, but the truth is there are plenty of reasons why it’s actually a brilliant idea. Don’t believe us? Here are four of those “believe it or not” reasons right here.
In an effort to stimulate the economy and keep it going even during these dire times, governments and central banks around the world have lowered interest rates to either next to nothing or absolute zero. This means that any banks offering credit of any kind will have the most attractive interest rates you’ve ever seen. This is an opportunity like no other that people who are already shopping for a home simply can’t pass up. First-time home buyers that are looking to make the most of their money are especially well-situated in this environment, meaning they can afford to purchase larger and more expensive homes because their overall mortgage payments will be smaller due to the lowered interest rate.
It’s not just first-time buyers that can tap into these low interest rates, though. Older, well-heeled house shoppers looking for a bargain while shopping for a vacation home, a place for them to settle down and retire, or even a place to help get their kids and/or grandkids on their feet in an economy that was already not that great for the younger generations to begin with are all likely to jump at the chance if their mortgage rates are lower than low. In other words, there are whole swathes of potential buyers that would be interested in your home that never would have been before these rate cuts.
Let’s face it: once you get to March or April or so, the Australian real estate market tends to slow considerably. Nobody really goes house shopping in winter, as it’s just too undesirable to go out and attend open houses and such with less-than-ideal weather. Properties also tend to show more poorly in winter, as wet, muddy, and otherwise miserable weather turning front and back yards into temporary eyesores.
Quick: what’s the best way to stand out in a situation like that? Be the only game in town, of course! Winter causes a slowdown in new real estate listings. The Coronavirus will slow down things even more. But if you’re out there, loud and proud, with an immaculate-looking property for sale just as the weather takes a turn, you’re going to attract lots of attention. We won’t say that it’ll guarantee a sale, but if you’ve got a cosy fire going in a home that smells like fresh-baked bread while a Melbourne winter rages outside, you’re going to top of the list in the minds of house shoppers when it comes to making a final decision!
Whether you’ve just moved in a few years ago or you’ve been living in your home for some time now, you’re likely paying quite a bit in interest with each and every mortgage payment. This is tiring, to say the least, but up until now you didn’t have much of a choice, did you? Well, with the current situation, you can easily offload your current property, pay off the outstanding amount on your mortgage, and then take your equity and go shopping for a new home. Your new mortgage will have a much better rate to be sure, and that leaves more cash in your pocket at the end of the day.
Want to downsize your cost of living even more? Trade in that big, sprawling empty-nester home for something smaller. A townhouse or beach house is the perfect thing if you’re looking to enjoy some quiet time. A smaller home leads to fewer expenses, both in the form of the overall purchase price and also in upkeep and maintenance. And if there’s any time to buy a nice, secluded home somewhere out far away from the rest of the world, it’s certainly right now!
Finally, there’s really no better time than right now if you’re looking for a good infusion of cash into your finances at the moment. If you’re looking to reinvest in your family home to raise its value, either through getting some must-do renovations done or expanding your current footprint, the best way to source those funds is through selling off an investment property you’ve got on the sidelines.
Doing so accomplishes plenty of things. Not only does it reduce your liabilities while also strengthening your liquidity, but it also offers you even more increased investment opportunities if you do spruce up your primary property with the proceeds of the sale. Put that new top storey on, or finish that extra room. In the long run, when you seek to sell that property on your way to downsizing in your retirement years, you’ll benefit from the massive bump in equity you’ll have as a result.
We get it. We know it sounds like utter madness to be thinking about anything besides staying healthy and safe right now. But you’ve also got to think ahead for when the world gets back to normal! Positioning your property for sale now is part of that process. Strike whilst the iron is hot and you’ll reap the rewards for years to come!