To Wait Or To Continue Investing During A Pandemic?
We know how difficult and frightening these times are. There are too many uncertainties that seem to pile up as the year progresses, and currently, there is no clear path or a solution (yet!) for the future. We understand that it is our human nature to be fearful when faced with danger. Though fear is healthy and very much expected in a downturn such as this, it is also the enemy that we think investors should also be mindful of. A property investment advisor can help you face your investment fear during these unprecedented times.
Managing property investments during a market downturn, especially one caused by a global pandemic, is something most of us haven’t experienced, given that the last time it was this terrible was during the 1918-1919 Spanish Influenza. Of course, it is tough to compare the economic effects of those years to what we are currently experiencing. Nevertheless, there are some things we can learn from.
Investing in properties is much safer compared to the other asset classes. No matter what times we are in -good or bad, there are positives to investing in real estate. So, the question is, should we wait on, or do we continue investing during this time?
Is it a Good time for Property Investments?
Some of the opportunities for new investors during this time include price reductions and the lowest interest rates. Since the market is on a downturn, prices are at a much more competitive price. It is also because of this that we now have low-interest rates of 0.5%, giving investors more borrowing power and cash flow when they invest. So, if you have enough finances to spare and to weather the few months ahead, go on and find the best investment property in Melbourne.
“There is still an opportunity for buyers who are in a strong financial position to enter the market while competition remains more subdued, but the focus for buyers may not be so much on securing the “bargain deal” as it is on closely monitoring the market and getting ready to act quickly on opportunities when they arise,” says Emma Everett, Chair of Momentum Wealth’s residential investment committee.
If you’re someone who has started their portfolios 5 or 10 years ago, this crisis wouldn’t worry you as much because of the continuous positive cash flow you’re collecting from your properties. One example of such would be your rental properties.
According to realestate.com.au, although there was a significant drop on rental properties during March when the restrictions for Covid-19 were put into place, the activity has picked up once again as soon as the six-month moratorium measures were announced. Though the rental industry will continue to face challenges ahead, people will continuously need shelter throughout the years, and since a lot of people will be opting to rent to help them save during this time, that rental income will most likely also continue. And that’s never going to change.
Property Investment Advisor
One of the things we’ve done here in Logic is to restructure our business. It is not just to be able to be on the front of things but also to help and assist the new investors who are coming into the market, and obviously want to take advantage and learn to invest in times like this.
For the new investors that do want to come aboard and be mentored during these times, we encourage them to have enough for the cost of construction because, at least, when you know you’re settled, we’ll keep building the property for you. You wouldn’t have to worry about the costs that are out of your pocket.
In Logic Property Group, we’ve sat down with our panel of land builders and land developers and discussed a few things on how we can help. We’ve decided to take 5000 AUD out of our professional fees. With this, all of our panels have also chosen to match that amount, giving a total of 10,000 AUD grants to motivate people to invest and take advantage of the market during this time. We want to help out as many people as we can, especially during this time.
Start educating yourself
Whatever happens in the market, doing good or in a downturn, there will always be people who are happy to adopt a “wait and see” approach. Of course, we understand that there are a lot of factors to take into consideration, such as job security, etc. These are some of the things that are good to consider and to ponder, most especially in a downturn or a pandemic like this. However, some people want to continue with their lives and continue investing.
Here in Logic Property Group, we want to do more. We want to help and to educate people on how to get the best property investments in Melbourne.
During these uncertain times, one of the things we want to share with our investors, whether they are new or have been building their portfolios for quite some time now, is to be more mindful, especially during these unprecedented times. We want our investors to learn to tread these waters carefully.
We very much encourage our investors to seek advice from a property investment advisor and to listen to their knowledge. No one’s better equipped to answer all of your questions and concerns regarding your property investments than them.
And as we’ve mentioned before, there are positives to every downturn. There is an excellent opportunity for investors during this time if you implement a property investment strategy in the long term. And finding the right mentor for you to help start and build your portfolio can do just that.
Logic Property Group
Now, if you’re still uncomfortable about investing during these uncertain times, it’s alright. But what we do encourage is for you to start engaging yourselves with a property investment advisor and coaches to see what the opportunities are in the market. Whether or not you will come on board during this time, at least you will have a better understanding of how you can proceed to start and to build your portfolio.
It’s alright to be cautious as we’ve never gone through something like this. But as Berkshire Hathaway’s Charlie Munger once said, “Always remember, human nature is your great enemy near market lows. At your absolute climax of fear, you must do the exact opposite of what you want to do.”
We do believe that this is the time to move and go against the masses. But we also think that we should patiently take time to learn more and to understand more, to listen to our property investment advisor before making a sizeable purchase. Call us at 1300-LOGICG (564424) or send us a message now.
The information on this post/video is of a general nature. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions.