{"id":448,"date":"2021-09-06T04:24:14","date_gmt":"2021-09-06T04:24:14","guid":{"rendered":"http:\/\/blog.effi.com.au\/blogs\/?p=448"},"modified":"2021-09-06T04:24:14","modified_gmt":"2021-09-06T04:24:14","slug":"buyers-compete-for-available-homes-in-locked-down-markets","status":"publish","type":"post","link":"http:\/\/13.210.238.202\/blogs\/2021\/09\/06\/buyers-compete-for-available-homes-in-locked-down-markets\/","title":{"rendered":"Buyers compete for available homes in locked down markets"},"content":{"rendered":"

Continuing lockdowns bring a lot of uncertainties but you would be right for thinking the real estate markets are still in good shape. Over the month of August, property values increased in all our capital cities.\u00a0<\/span><\/p>\n

Homeownership is still the DREAM\u00a0<\/b><\/h2>\n

Occasionally you\u2019ll hear economists say that it\u2019s actually better to rent over the long term but you can bet all of these economists own at least one house. The truth is, the negatives tend to outweigh the positives.\u00a0<\/span><\/p>\n

On an episode of the <\/span>Australian Financial Podcast<\/span><\/a>, Andrew Page, Founder of an online investment club called Strawman who admittedly faced the emotional turmoil ensued from selling his house and taking all equity to invest in shares. Most homeowners would never know what it\u2019s like to move house with kids and have to factor in their school zones and every place you live feels like an AirBnb. He said the laws in Australia really disadvantage tenants and you would be lucky to get a lease of more than 12 months. So for the past 7 years, his family has been in 5 different houses because the landlords wanted to sell or put their kids in there or renovate. So tenants are vulnerable to all these downsides.\u00a0<\/span><\/p>\n

Listings tumbled but buyer demand remains strong<\/b><\/h2>\n

The latest REA Insights report reveals that the ongoing restrictions started in late June which saw almost 12 million Australians locked down had an immediate effect on the property listings. Cautious property sellers are holding off listing their properties as a result. <\/span>New listings dropped<\/span><\/a> by 27.3 per cent in Sydney, 14.2 per cent in Melbourne, 6.6 per cent in Brisbane, and decreased by 26.9 per cent in Adelaide during the month.\u00a0<\/span><\/p>\n

But buyers are out in full force including owner-occupiers, investors and first home buyers. <\/span>Why?<\/span><\/i> One reason is because some people believe that the property market would never crash. The government would simply never allow that to happen. House prices will only be higher every year and it will never go backwards. Another reason is because people are not spending money to travel so they are saving up to put into real estate.\u00a0<\/span><\/p>\n

Due to low stock levels, everything coming to the market at the moment is selling at a premium price \u2013 a win for sellers who are brave enough to list their properties amid lockdowns. So, it might be well worthwhile to list your property during this time to take advantage of the quieter market. You know, once lockdowns are lifted, there will be fierce competitions. Supply will catch up plus affordability issues will likely curb demand.\u00a0<\/span><\/p>\n

Managing your expectations<\/b><\/h2>\n

The skyrocketing house prices make it difficult for some families to save for an upfront deposit. Especially those earning lower incomes are going to be affected by affordability issues. Unless their household incomes increase in the future, getting a foot on the property ladder right now might be the wildest dream. Lloyd Edge, director of buyers agency Aus Property Professionals said it\u2019s a matter of <\/span>managing your expectations<\/span><\/a> and finding a property that fits your budget.\u00a0<\/span><\/p>\n

Buyers need a crystal-clear idea of their financial situations: earnings and biggest expenses. Your budget should show you how much money you need to afford the dream and how to get there.\u00a0 Sometimes you might be better off aiming for a unit or an apartment in another suburb. And of course, there are government concessions and financial programs like First Home Loan Deposit Scheme (FHLDS), Family Home Guarantee (FHG), Stamp Duty Concessions, First Home Owner Grant and First Home Super Saver Scheme that could help you save.\u00a0<\/span><\/p>\n

Home ownership is possible but it would require a lot of discipline. Dream big but you have to put a pathway to get there. Get used to spreadsheets and budget tracking, start a buffer fund for the expenses involved in buying a home. If you need help dealing with all those numbers, a mortgage broker can help you work out the best options for your situation.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Continuing lockdowns bring a lot of uncertainties but you would be right for thinking the real estate markets are still in good shape. Over the month of August, property values increased in all our capital cities.\u00a0 Homeownership is still the DREAM\u00a0 Occasionally you\u2019ll hear economists say that it\u2019s actually better to rent over the long …<\/p>\n

Buyers compete for available homes in locked down markets<\/span> Read More »<\/a><\/p>\n","protected":false},"author":6,"featured_media":449,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":""},"categories":[3],"tags":[],"jetpack_featured_media_url":"https:\/\/i1.wp.com\/13.210.238.202\/blogs\/wp-content\/uploads\/2021\/09\/Sold_Sign_Sydney_01_ujbv4g-e1630902242469.jpeg?fit=600%2C450","uagb_featured_image_src":{"full":["https:\/\/i1.wp.com\/13.210.238.202\/blogs\/wp-content\/uploads\/2021\/09\/Sold_Sign_Sydney_01_ujbv4g-e1630902242469.jpeg?fit=600%2C450",600,450,false],"thumbnail":["https:\/\/i1.wp.com\/13.210.238.202\/blogs\/wp-content\/uploads\/2021\/09\/Sold_Sign_Sydney_01_ujbv4g-e1630902242469.jpeg?resize=150%2C150",150,150,true],"medium":["https:\/\/i1.wp.com\/13.210.238.202\/blogs\/wp-content\/uploads\/2021\/09\/Sold_Sign_Sydney_01_ujbv4g-e1630902242469.jpeg?fit=300%2C225",300,225,true],"medium_large":["https:\/\/i1.wp.com\/13.210.238.202\/blogs\/wp-content\/uploads\/2021\/09\/Sold_Sign_Sydney_01_ujbv4g-e1630902242469.jpeg?fit=600%2C450",600,450,true],"large":["https:\/\/i1.wp.com\/13.210.238.202\/blogs\/wp-content\/uploads\/2021\/09\/Sold_Sign_Sydney_01_ujbv4g-e1630902242469.jpeg?fit=600%2C450",600,450,true],"1536x1536":["https:\/\/i1.wp.com\/13.210.238.202\/blogs\/wp-content\/uploads\/2021\/09\/Sold_Sign_Sydney_01_ujbv4g-e1630902242469.jpeg?fit=600%2C450",600,450,true],"2048x2048":["https:\/\/i1.wp.com\/13.210.238.202\/blogs\/wp-content\/uploads\/2021\/09\/Sold_Sign_Sydney_01_ujbv4g-e1630902242469.jpeg?fit=600%2C450",600,450,true],"jetpack-portfolio-admin-thumb":["https:\/\/i1.wp.com\/13.210.238.202\/blogs\/wp-content\/uploads\/2021\/09\/Sold_Sign_Sydney_01_ujbv4g-e1630902242469.jpeg?resize=50%2C50",50,50,true]},"uagb_author_info":{"display_name":"Effi Author","author_link":"http:\/\/13.210.238.202\/blogs\/author\/effi-author\/"},"uagb_comment_info":0,"uagb_excerpt":"Continuing lockdowns bring a lot of uncertainties but you would be right for thinking the real estate markets are still in good shape. Over the month of August, property values increased in all our capital cities.\u00a0 Homeownership is still the DREAM\u00a0 Occasionally you\u2019ll hear economists say that it\u2019s actually better to rent over the long…","_links":{"self":[{"href":"http:\/\/13.210.238.202\/blogs\/wp-json\/wp\/v2\/posts\/448"}],"collection":[{"href":"http:\/\/13.210.238.202\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/13.210.238.202\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/13.210.238.202\/blogs\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"http:\/\/13.210.238.202\/blogs\/wp-json\/wp\/v2\/comments?post=448"}],"version-history":[{"count":1,"href":"http:\/\/13.210.238.202\/blogs\/wp-json\/wp\/v2\/posts\/448\/revisions"}],"predecessor-version":[{"id":450,"href":"http:\/\/13.210.238.202\/blogs\/wp-json\/wp\/v2\/posts\/448\/revisions\/450"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/13.210.238.202\/blogs\/wp-json\/wp\/v2\/media\/449"}],"wp:attachment":[{"href":"http:\/\/13.210.238.202\/blogs\/wp-json\/wp\/v2\/media?parent=448"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/13.210.238.202\/blogs\/wp-json\/wp\/v2\/categories?post=448"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/13.210.238.202\/blogs\/wp-json\/wp\/v2\/tags?post=448"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}