While Peter is not officially a ‘Professor’, his extensive research of property markets around the nation and teaching as the Program Director for the Master of Property at the University of Adelaide has earned him the tag ‘The Property Professor.’
Marissa sat down with Peter to answer your popular questions:
- How has Covid-19 impacted the property market?
- What will happen to the property market in the next 6 to 12 months?
- When is it a good time to buy property?
Here are the key take away messages:
The impact of Covid-19 on the Property Market
In March 2020 it was feared by many that the property market would be severely impacted by the Covid-19 pandemic. However, the property market remained resilient and hasn’t been as affected as previously thought.
Peter’s research reveals that since March 2020, property prices have dropped only in Sydney (3%) and Melbourne (6%), while property prices in other capital cities have remained the same or even slightly increased!
Predictions for the Property Market
Since the Global Financial Crisis in 2008, the Government have been tightening lending criteria. These regulations are due to loosen in March 2021 and we are expecting individuals;
- Borrowing capacity to increase
- Ability to borrow enabled
While interest rates are currently at record lows, Peter’s prediction is that there will be no immediate change in the property market until business and consumer confidence increases, and until the lending regulations are relaxed. Keeping this in mind, things like learning how you can negotiate the right price for your new property can come in handy, helping you to be ready for any opportunities that may come your way.
Timing vs Time-In
Peter has conducted extensive research about the difference between purchasing property holding it for the long-term (15-20 years) and predicting the property market, purchasing at the right time and selling (every 5 years). His finding reveal that you should be looking at your property investment strategy as a long-term strategy, looking to hold your properties for at least 15-20 years if possible. Click here to download Peter’s research and receive regular property investment information from us.
Because we can’t necessarily predict what property values will do in the short-term, but we have greater confidence in what property vales will do in the long-term, the buy and hold strategy makes your investment strategy more predictable and reliable!
Peter’s findings suggest Key lessons
- If you find a good property, just buy it!
- It is not so much the timing of the market when you buy that is important but rather the time in the market that is what will determine your ultimate success as an investor.
If you’d like to learn more and tune in to the ‘The Property Planner, Buyer and Professor’ podcast, click here.