What is up (or down) with real estate?
For years we have heard that the property bubble is about to pop, and while there have been some corrections it seems that the growth in value never seems to waver. With the onset of Covid-19 some analysts are predicting value declines of 10%, 20% or even 30%.
Against that what are we seeing? Really, really strong enquiry for people wanting to borrow for both owner-occupied home loans and investment loans. This may be a sign that people are seeing value, that’s the feedback we are getting. Especially in regional markets where values didn’t climb as rapidly as the city markets.
This is a sign to us that perhaps while the city markets will see a correction, regional markets appear to be holding up. So if you have been thinking of buying a property don’t be afraid, do your research, make your own mind up. Don’t be bluffed by the doomsayers, they are not always right.
NB. This is not intended as advice, it is general information. IT does not replace you doing your own research and making your own investment decisions. You should also seek out professional advice from your accountant and financial planner.