PROPERTY AFTER COVID 19
What To Expect After Covid 19?
Many people have been wondering what’s next after Covid 19. Firstly, life as we know it will definitely change at least for the next one year or so. Wearing of face masks, social distancing or at least standing 1 meter apart from each other in public will become the norm. People will undoubtedly still be fearful of the virus until a proper vaccine has been found, tested, produced in mass and readily available for the general public.
Covid 19 has definitely up the game in the property industry in the short to mid term. Many people are already facing layoffs in many industries. Some businesses have suffered much losses and may not even recover after Covid 19. Some victims have already given up and closed down their operations as they cannot continue to support their businesses. This means cash flow in the market would be reduced at least for the next couple of years. As people’s disposable income reduce, belts will tighten and many people may put off their spending on big ticket items. The property market certainly falls under that category.
During the MCO, our Government took some measures to ensure that people will not default on their property loans by deferring loan repayments for 6 months. This move is to protect the property industry and give people some breathing space when their income or ability to earn money have come to a virtual stop. When the MCO is lifted, it is assumed that most people will try to head back in full swing to get back to normal. However there will be those who may need to sell their properties off because their recovery may not happen as quickly. There are also those who may not be able to dispose and may end up seeing their properties being auctioned. Developers are now also offering many special packages to attract buyers for their existing projects. They too need to sell in order to maintain afloat.
For those who are looking for properties, now could be the time for you to pick some bargains. There are deals from developers which is certainly good news for property buyers looking to buy for their own use or to invest in their portfolio. There will be owners who are now more motivated to sell than before. This will definitely be welcoming news for buyers looking to own certain secondary properties within a specific location of their choice.
However, property buyers are advised to consider several points before they embark on their investment spree:
- Consider buying and keeping for mid to long term basis;
- Be financially prepared to continue paying your loans;
- Be prepared to pay your service charges and sinking funds;
- Expect to have a slightly longer vacancy period before renting you properties out;
- Engage a professional property agent to help you in your purchase and renting out.
Property buyers should always seek the advise of proper professional property agents when they are in the market for properties. Know who you are dealing with because getting the right and correct advise is not the same as just getting an advise from someone who markets themselves as property experts. There are too many of those in the market these days and so do be careful with whom you seek advise from. Do your research well and ask around about the Real Estate Negotiators what may be approaching you.
In conclusions, in every crisis there are opportunities. Yes Covid 19 has really affected us locally and worldwide. But as far as our local property industry goes, we can safely say there are opportunities abound and if you are in the market to buy a place to call HOME or simply wanting to invest into your portfolio. The time to buy is indeed now but you need to be careful and know what your getting yourself into. Offers won’t last long because as soon as there are signs of recovery, prices will bounce back to normal. Happy property hunting and if you need to speak to the professional, call me.