Insights Report March 2020

MARCH

Insights

reliancere.com.au

TABLE OF

Contents

2 5

WELCOME A message from the CEO Sunil Kumar

ARTICLES Featured articles from the month of March

9

SALES SUMMARY

17

RENTALS ACTIVITY

23

LATEST NEWS

Featured Sold and On Market listings

Featured Leased and On Market listings

Featured articles on Domain and REA

SUNIL KUMAR

CEO/Founder Over the past month, we’ve seen our lives change drastically. Our lives have gone from gatherings at a local park to, only leaving our homes for essential purposes. During these trying times, we are seeing the protective instincts of within ourselves and our communities, banning together to #stopthespread of the COVID-19 virus.

Over the past 9 years, our business has overcome many challenges. The month of March produced some of our greatest challenges and triumphs, we’ve had to date.

We welcome the most recent announcement from the Prime Minister regarding how our industry operates, and we will continue to make whatever shifts that are required to comply with legislation and maintain safety for our team and customers. All our offices are closed, with majority of our team working remotely, luckily we have the advanced technology that not only enhances our business but has minimised any interruption to our workflow when working remotely.

With the new restrictions on open for inspection and on-site auctions, our marketing team is supporting both our rental and sales department in producing video tours of all our properties*.

I predict that virtual tours will increase in popularity post-outbreak as this will be the new way of looking at properties online.

Our Sales team loves the new working style, going back to the original ‘one-on-one inspections’ method which is building greater connections with the buyers and vendors. Genuine buyers are still wanting to buy, with all our agents pre-screening the potential buyers to ensure that are eligible to purchase as well as conducting a safety-check questionnaire to ensure they are protecting the vendors and themselves.

For Auctions, some sellers have decided to delay selling until this is over or switched over to private sale, whilst many others are happy to continue as planned. How it works is the auctioneer conducts the auction from the property and buyers watch and bid online from the comfort of their own homes.

We understand this outbreak is impacting everyone, and when you are self isolating or in quarantine loneliness can often affect our mental state. Make sure you reach out to your friends and family during this time, or contact Lifeline on 13 11 14 where they can support you through the tough times.

My five suggestions to enhance your daily routine whilst in self-isolation is • 30 minutes of exercise daily.

• Meditate / Breathing Exercises.

• Check in with your loved ones.

• Schedule Face-time Catch-up with Friends.

• Get crafty with some DIY. This will pass, just like many viruses have done so before. As I keep saying to my team and clients, “We are all in this together”.

Sincerley,

Sunil Kumar CEO/Founder

FEATURED IN MARCH

Articles

FEATURED IN MARCH

RELIANCERE.COM.AU

Articles

How COVID-19 is impacting the real estate market Buying and selling property in Australia has changed for the foreseeable future due to the COVID-19 outbreak. As a community, we are all being impacted; and as a nation we are all banning together to protect one another.

The state and federal governments have introduced necessary restrictions to stop the spread of the virus. This included limitations on open for inspections as well as the number of people attending them.

Can I still sell my home?

Of course, all agents have adapted to the new restrictions.

Introducing video tours to majority of homes, private inspections and online auctions.

Can I still buy at an auction?

A lot of agencies have moved to online auctions using tools such as Gavl, where possible Reliance will be using this system; other vendors selling their homes have opted to move to private sale for their property.

Can I still inspect a property that I am interested in?

After viewing the property via the video tour*, we recommend contacting the selling agent to arrange a private inspection of the premises.

What if I can’t make my mortgage repayments?

Most banks are allowing customers to pause their loan repayments for up to six months if they are experiencing financial hardship. We recommend contacting your bank directly.

What if I can’t pay my rent?

If you think you might not be able to pay your rent due to financial hardship, you should advise your property manager or agency as soon as possible. Reliance’s priority is protecting and assisting all our clients during this trying time.

INSIGHTS REPORT MARCH

How will COVID-19 impact the property market?

At the moment, we are predicting a short-term impact, however most experts are predicting the market ‘bounce-back’ once concerns over the virus has passed.

Tips for Selling during COVID-19: 1. Choose an agent that utilizes technology, implementing virtual tours and live-streamed property inspections for buyers.

2. Elect an agency that has a protection and commitment plan in place during the COVID-19 virus.

3. Ensure you are sanitizing all surfaces prior to an inspection.

4. Ensure you and your family are not present during the Inspection.

5. Notify your agent at any time if you do not feel comfortable having people in the home Tips for Buying during COVID-19: 1. Make direct contact with the Agent to view the desired property.

2. View the Virtual Tour / Video of the property online (if available) 3. Ensure the agency and agent has a protection and commitment plan in place during the COVID-19 virus.

4. When viewing the property, we are restricting the number of people in the home to two 5. Restrict opening doors or touching fixtures during the inspections.

6. Sanitise your hands prior to inspection, and where gloves provided (if applicable) 7. Maintain a safe 1.5-2metre distance from other 8. people in your surroundings.

PAGE 5

FEATURED IN MARCH

RELIANCERE.COM.AU

Articles

Guide to keeping the kids busy during lockdown.

Keeping children’s bodies moving and brains active is essential, especially when they are not at school during the coronavirus pandemic.

Finding ways to keep the little ones occupied, without leaving the house can often be difficult.

1. Grow things Save your apple, pear or even lemon seeds for replanting and watch these trees grow and produce fruit for years to come. Another option is to propagate your plants, plants such as succulents, fiddle leaf figs, rosemary and even a devil’s Ivy. 2. Backyard Camping Set up your tent in the backyard, you can spend the night star gazing or preparing your torch for some critter-spotting.

3. Bake Something Prepare something sweet or savory (or even both). The preparation, cooking and decorating of muffins can almost become a half day activity with little ones. Search the web for recipes you can make using only what is in your cupboard.

The Reliance team favorites’ are: “A simple chocolate mud-cake!” – Amy Kayani, HR Manager. “ Honey Joys! “– Pratik Shah, Sales Agent.

“A decadent Sticky Date Pudding” – SanchitWalia, Head of Property Management.

“Chocolate Chip Cookies are always a big hit!” – Selena Emkic, Office Coordinator 4. Paint the Driveway Use shop-bought or homemade chalk – made of cornflour, water and food colouring to create temporary art on the driveway or pavement.

INSIGHTS REPORT MARCH

5. Paint Rocks Any painting activity will do but change things up by painting rocks to transform them into animals such as ladybirds or tortoises.

6. Outdoor Picnic Why not gather your freshly baked goods and set up an outdoor picnic in the backyard. For the little ones, you can turn it into a teddy bear picnic, where they can invite all their stuffed animals.

7. Virtual Excursions Did you know so many zoo’s and museums have live webcams and virtual tours.

– Melbourne Zoo: live streaming the zoo, so you can enjoy animals at home. (https://www.zoo.org.au/animal-house) -The Louvre, Paris: explore the exhibitions in one of the most famous French destinations. (https://www.louvre.fr/ en/visites-en-ligne) 8. Online Learning There is so many resources online, utilising technology in learning. Online website such as ABCmouse that has over 850 lessons, with new activities being added constantly.

9. Board Games and Puzzles Nothing keeps the mind proactive like a board game or a puzzle.

The Reliance team favorites’ are: “A game we can play for hours, and get very competitive in is defiantly Uno!” – Sunil Kumar, CEO “There is no feeling that beats, winning a long winded game of Monopoly” – Stevie Bell, General Manager “ You can’t beat the classic, Battleship” – Amber Wright, Marketing Manager 10. Learn Origami Use recycled paper from around the house and learn the art of origami, there is plenty of video’s online.

PAGE 6

Sell your home Off-Market with Reliance Appoint your Reliance Agent to launch your Off-Market Selling Campaign.

Over 100 Reliance agents built our buyers database with 60,000+ buyers from all other property related marketing e.g open homes, online portal enquiries.

All other Reliance agents are notified of your property for maximum buyer exposure throughout the network.

Bulk communication is made with all matching potential purchasers via email, SMS & telephone. VIP viewings and private inspections are conducted.

Offers and interest are received & reviewed.

Property is sold or valuable market intelligence is gained for open market release.

INSIGHTS REPORT MARCH

PAGE 7

FEDERAL INCENTIVES

RELIANCERE.COM.AU

Covid-19 1st tranche $10k to $50k tax free payment

Tax Payment Deferral - ATO

• • •

•

•

<50m turnover Held an ABN on 12 March 2020 Carring on a business and earned assessable income in FY 2019 or made supplies in course or further of an enterprise starting 1 July 2018 and ending before 12 March 2020 Based on 100% of PAYGW amount in activity statement from Jan to June 2020

•

• • • • •

Ability to vary March 2020 PAYG installment to NIL Ability to claim a refund for PAYG instalments for September 2019 and Decemnber 2019 quarter Ability to remit any interest and penalties incurred on or after 23 January 2020 Assisting business to pay ATO debts including low interest payment plans Quarterly reporters can opt in for monthly to get access to GST refunds quicker

2nd tranche $10k to $50k tax free payment • • • •

<50m turnover Same tests as per Tranche 1 Based on 100% of PAYGW amount in Tranche 1 and paid in activity statement from July to October 2020

JobKeeper Payment •

•

• • • •

Claim $1500 per fortnight including self-employment individuals for each worker that is employed Includes employees (those let go as well) ‘on the books’ as 1st of March 2020 (no limit on employer size) Maximum period 6 months Turnover <$1BN and turnover reduced >30% relative to a comparable period 1 year ago Turnover <$1BN and turnover reduced >50% relative to a comparable period 1 year ago Not subject to Major Bank Levy

Instant Assest Write off $150k • • •

<500m turnover Assest must be installed and ready for use by 30th June 2020 Only applies until 30th June 2020

Early Access to Super • • • •

•

Access 10K before 1st July 2020 Access a further 10K from 1st July 2020 until 24th Sep 2020 Must be unemployed Eligible to receive job seeker payment, youth allowance for job seekers, parenting benefits or farm household allowance.

On or after 1st Jan 2020 either - Made redundant - Working hours reduced by >20% - Sold trader turnover reduced by >20%

50% subsidy apprentice wages •

• • • • • • •

Wage subsidy of 50% of apprentice or trainee wages for up to 9 months from Jan 2020 to Sep 2020 If SME not able to retain apprentice subsity available to a new employee Maximum benefit 21k per apprentice or trainee Available to SME employing fewer than 20 employees who retain an apprentice or trainee Can register from 2nd April 2020 Final claim lodged by 31st Dec 2020

Government Backed Loans - SME Scheme • • • • • • •

<50m turnover 50% guarantee on new loans for SME’s up to 2050k Financial Institutions will be providing the products Operates from 1st April 2020 for 30th Sep 2020 3 year term, initial 6 months repayment holiday No sercurity required

INSIGHTS REPORT MARCH

Accelerated Depreciation • •

•

<$500m turnover Not using simplified depreciation rules 50% reduction of the cost exsiting depreciation rules apply to the balance Assest must be installed and ready for use by 30 June 2021

PAGE 8

FEATURED IN MARCH

Sales

IN MARCH

RELIANCERE.COM.AU

Sold Properties Compare our results with other local agencies..

CAROLINE SPRINGS

POINT COOK

OTHER AGENCIES

OTHER AGENCIES 5

10

15

20

MELTON

TARNEIT

OTHER AGENCIES

OTHER AGENCIES 5

10

15

20

WERRIBEE

SUNBURY

OTHER AGENCIES

OTHER AGENCIES 5

10

INSIGHTS REPORT MARCH

15

20

5

10

15

20

5

10

15

20

5

10

15

20

PAGE 10

IN MARCH

RELIANCERE.COM.AU

Median Sale Price CAROLINE SPRINGS

POINT COOK

OTHER AGENCIES

OTHER AGENCIES 300K 500K 800K 1M

300K 500K 800K 1M

MELTON

TARNEIT

OTHER AGENCIES

OTHER AGENCIES 300K 500K 800K 1M

300K 500K 800K 1M

WERRIBEE

SUNBURY

OTHER AGENCIES

OTHER AGENCIES 300K 500K 800K 1M

INSIGHTS REPORT MARCH

300K 500K 800K 1M

PAGE 11

RELIANCERE.COM.AU

SELECTION OF

Recently Sold SOLD

3

2

2

SOLD

4

3

4

SOLD

4

2

4

SOLD

3

2

1

SOLD

4

2

2

SOLD

4

2

2

SOLD

4

2

2

SOLD

3

1

2

SOLD

3

1

4

SOLD

4

2

2

8 Bernhardt Avenue Hoppers Crossing

10 Pinecone Court Werribee

87 Toolern Waters Drive Melton South

19 Carmine Circuit Burnside

1 Pratt Court Werribee

INSIGHTS REPORT MARCH

52 Killarney Drive Melton

1/105 Westmeadows Lane Truganina

10 Toolern Waters Drive Melton South

2 Condor Court Werribee

3A Fifeshire Drive Hoppers Crossing

SOLD

4

2

1

SOLD

4

3

4

SOLD

5

3

2

SOLD

3

1

2

SOLD

5

2

2

2 Judy Court Melton

19 Pangbourne Avenue Harkness

13 Aquatic Drive Werribee South

22 First Avenue Melton South

38 Canterbury Circuit Melton South

PAGE 12

RELIANCERE.COM.AU

SELECTION OF

Just Listed JUST LISTED

3

2

2

JUST LISTED

4

2

2

JUST LISTED

4

2

3

JUST LISTED

3

2

1

JUST LISTED

3

2

1

JUST LISTED

4

2

4

JUST LISTED

3

2

2

JUST LISTED

3

2

1

JUST LISTED

4

2

2

JUST LISTED

4

2

2

JUST LISTED

4

3

2

JUST LISTED

3

1

2

JUST LISTED

4

2

2

JUST LISTED

3

2

1

JUST LISTED

4

1

2

8 Swanview Walk Point Cook

29 Margaret Drive Bacchus Marsh

34 Turf Club Boulevard Melton South

5 Mundi Crescent, Manor Lakes

13 Yaramba Boulevard, Point Cook

INSIGHTS REPORT MARCH

10 Cornus Drive Tarneit

2 Norbury Lane Caroline Springs

60 Everholme Drive Truganina

2 Larnook Crescent, Truganina

46 Penguin Street, Melton

8 Runnymeade Lane Brookfield

34 Wildflower Cres Hoppers Crossing

21 Olympic Circuit Melton South

2 Kathleen Court, Sunshine

1 Cromwell Road, Kings Park

PAGE 13

RELIANCERE.COM.AU

SALES TEAM

Meet Our

AJ

Aarti Puri

Abhi Elawadhi

Ajay Nain

Akash Choudhary

Akhil Kansal

Dhruv Chaudhary

Divyesh Waghela

Donna Carson

Glenda Del Pilar

Gurmit Singh Aiden

Harry Patel

Inder Vasu

Jd Patel

INSIGHTS REPORT MARCH

Abishek Parashar

Jessica Leng

PAGE 14

RELIANCERE.COM.AU

SALES TEAM

Meet Our

Jimmy Gill

Kamlesh Kamani

Kanan Patel

Karan Kapoor

Karan Vejrani

Kaydee Singh

Mavi Singh

Meenu Mehndiratta

Mick Vashisht

Milan Neotane

Moonah Ahmed

Nik Behl

Nirav Parikh

INSIGHTS REPORT MARCH

Nitesh Rana

Nam Duy Tran (danny)

Pratik Shah

PAGE 15

RELIANCERE.COM.AU

SALES TEAM

Meet Our

Prince Dhir

Ruban Kaur

Priya Chowdary

Sagar Singh

Raj Pratap

Ravi Khepar

Shubham Rana

Socorro Gomez

Vik Monga

Sushant Peshin

Taney Jain

Varun Vagdhan

Vikas Rana

Vishal Malik

Yash Sethi

INSIGHTS REPORT MARCH

PAGE 16

FEATURED IN MARCH

Rentals

IN MARCH

RELIANCERE.COM.AU

Leased Properties Compare our results with other local agencies..

CAROLINE SPRINGS

POINT COOK

OTHER AGENCIES

OTHER AGENCIES 5

10

15

20

MELTON

TARNEIT

OTHER AGENCIES

OTHER AGENCIES 5

10

15

20

WERRIBEE

SUNBURY

OTHER AGENCIES

OTHER AGENCIES 5

10

INSIGHTS REPORT MARCH

15

20

5

10

15

20

5

10

15

20

5

10

15

20

PAGE 18

RELIANCERE.COM.AU

IN MARCH

Median Rent CAROLINE SPRINGS

POINT COOK

OTHER AGENCIES

OTHER AGENCIES $300 $350 $400 $450

$300 $350 $400 $450

MELTON

TARNEIT

OTHER AGENCIES

OTHER AGENCIES $300 $350 $400 $450

$300 $350 $400 $450

WERRIBEE

SUNBURY

OTHER AGENCIES

OTHER AGENCIES $300 $350 $400 $450

INSIGHTS REPORT MARCH

$300 $350 $400 $450

PAGE 19

RELIANCERE.COM.AU

SELECTION OF

Recently Leased $450

$345

per week

LEASED

44 Timele Drive Hillside

4

2

2

LEASED

39 Nattarak Avenue Werribee

3

$290

143 Rosella Avenue, Werribee

3

1

2

LEASED

13 Java Lane Point Cook

3

3

2

2

LEASED

4 Carissa Circuit Werribee

4

4

2

2

LEASED

3 Vasey Court Melton South

3

4

2

2

LEASED

3

170 Virgilia Drive Hoppers Crossing

1

INSIGHTS REPORT MARCH

LEASED

19 Gillespie Avenue Werribee

4

2

1

per week

2

LEASED

4

12 Queensbridge Street Tarneit

2

2

$350 per week

4

LEASED

3

9 Blairgowrie Place Melton West

1

2

$410

per week

2

2

$410

$380

per week

26 Santarosa Avenue Tarneit

2

4

per week

per week

$380

LEASED

2

2

$360

$310

per week

42 Tedcastle Drive Aintree

4

17 Dumbarton Circuit Melton West

per week

$450

LEASED

LEASED

$380

per week

11 Third Avenue Hoppers Crossing

2

per week

$380

LEASED

2

per week

$450

per week

LEASED

$340

per week

per week

2

LEASED

71 Williams Landing Bvd, Williams Landing

3

2

PAGE 20

2

RELIANCERE.COM.AU

SELECTION OF

Just Listed $390 per week

3

2

2

$350 per week

4

2

2

$375 per week

3

2

2

$390 per week

3

2

4

$320 per week

4

2

2

$395 per week

4

2

2

$340 per week

3

2

2

$320 per week

3

1

2

$460 per week

4

2

2

$480 per week

5

2

2

$380 per week

3

2

1

$400 per week

4

2

2

$380 per week

4

2

2

$380 per week

4

2

2

$370 per week

3

2

2

34 Anglers Avenue, Point Cook

16 Goulburn Court, Werribee

11 Ferdinand Place, Melton West

36 Eleanor Drive, Hoppers Crossing

8 Claire Way, Tarneit

INSIGHTS REPORT MARCH

24 Birkdale Way, Weir Views

19 Mount Eagle Way, Wyndham Vale

14 Richard Road, Melton South

19 Mercer Lane, Point Cook

6 Calico Court, Wyndham Vale

9 Archibald Chase, Point Cook

14 Whitehouse Avenue, Truganina

19 Juniper Avenue, Point Cook

19 Bishopsgate Avenue, Tarneit

17 Guidance Way, Tarneit

PAGE 21

RELIANCERE.COM.AU

PROPERTY MANAGEMENT TEAM

Meet Our

Ashlee Sciberras

Bansari Raval

Deepthi Yedla

Isha Monga

Matthew Buller

Melanie Cressey

Nikki Kaur

Pawan Braich

Rahul Mandhan

Samantha Grima

Tyra Suemai

Sanchit Walia

Vita Wibianty

THE MARKET REPORT

PAGE 22

FEATURED IN MARCH

News

FEATURED IN DOMAIN

DOMAIN.COM.AU

News Looking for a rental? New listings flood the market as hard-up tenants leave. written by DOMAIN Australia’s rental market has been flooded with new listings as people rush to lower the cost of living during the coronavirus crisis and back out of their properties to find cheaper accommodation with relatives.

New data from Domain revealed 39,252 more properties have been listed over the past two weeks alone. The data, which compared the average number of weekly listings for the two weeks between March 16 and 29 with the average weekly listing for the previous four weeks, saw listings in capital cities surge, with Tasmania up 58 per cent, ACT up 29 per cent, NSW up 19 per cent, Victoria up 18 per cent and Queensland up 21 per cent.

Overall, across the nation, rental listings jumped by a staggering 19 per cent in just two weeks. Domain economist Trent Wiltshire said people who had lost their jobs were looking for ways to save money by moving back in with their parents or partners and vacating properties. There were also more short-term rentals coming onto the full-time rental market, he said.

“It does seem like there’s an Airbnb effect,” Mr Wiltshire said. “We’re likely to see the rental vacancy rate rise and downward pressure on rents because there is more choice in properties.”

Related: Private inspections to continue despite tougher social-distancing restrictions Related: Short-term holiday lets back in rental market as tourists disappear amid coronavirus Related: The adult kids forced back home in the wake of COVID-19 Rental listings March 16-29, 2020

State Number of new rental listings YoY NSW 15554 21% Vic 9247 25% Qld 8399 18% WA 3133 4% SA 1537 13% ACT 483 -9% Tas 648 58% Australia 39252 19%

% change to previous 4 weeks 19% 18% 21% 9% 15% 29% 58% 19%

Source: Domain Group As renters contend with unstable employment and struggle to pay the rent, landlords are also facing hardship through a loss of rental income with some looking to drop rents to fill the vacancy.

In South Brisbane, one-bedroom, one-bathroom and one-carpark apartments had come back onto the market as people moved back home. Business development manager with Place Residential rentals Rebecca Russell said landlords were quickly dropping the rent prices for these particular properties in order to fill them.

“You used to be able to get $500 [for these properties], now it’s $400 per week,” she said.

As well as job losses, short-term rental cancellations were also causing a boost in the number of available rentals in the area.

Despite the spike in listings, Ms Russell said the properties were being rented as quickly as they were listed, snapped up either by expats moving back to Australia to be close to family or medical professionals needing to self-isolate.

“We’re still able to do the one-on-one inspections so people are looking,” Ms Russell said.

Despite the spike in listings, Ms Russell said the properties were being rented as quickly as they were listed, snapped up either by expats moving back to Australia to be close to family or medical professionals needing to self-isolate.

“We’re still able to do the one-on-one inspections so people are looking,” Ms Russell said.

INSIGHTS REPORT MARCH

PAGE 24

In NSW, rental listings in some regions have absolutely spiralled, with inner Sydney seeing 163 per cent more available rentals compared to the same time last year. The eastern suburbs, including Bondi, saw a massive lift of 61 per cent over the same time period. “There are lots of places there that are Airbnb friendly,” Mr Wilshire said.

It was a similar story in other states. In Victoria, inner Melbourne’s Stonnington, including South Yarra and Prahran, led the way with rentals leaping by 81 per cent since the same time last year and the inner city jumping by 79 per cent. Elsewhere in Queensland, Cairns’ listings were up 55 per cent compared to the same time last year while Gold Coast rentals were up 31 per cent. The only capital whose numbers were down over the year was Canberra where listing numbers dropped by 9 per cent. However, compared to just four weeks ago, rental listing numbers are up by 29 per cent revealing a short-term spike.

Rental listings, regions, March 16-29, 2020

State/region New rental listings NSW – Sydney City 930 NSW – Eastern suburbs 2301 Vic – Stonnington 1023 Vic – Inner City 1313 QLD – Brisbane 1420 QLD – Cairns & District 394

YoY 163% 61% 81% 79% 31% 55%

% change (4 weeks) 162% 51% 51% 55% 53% 51%

Source: Domain Group The Agency head of property management Maria Carlino said there had been a lot of movement in the market since coronavirus restrictions were put in place. Forced closures of hospitality, retail and entertainment businesses, among others, had seen many people lose their jobs and their ability to pay rent. “There are probably a couple of factors having an effect,” Ms Carlino said.

“We had overseas renters who have just absconded back home and left the property vacant. “There are some tenants renegotiating the rent to ease the pressure and Airbnb owners are considering listing their properties on a full-time basis. “We also have had some cases where owners have taken their properties off the market for a short time and had siblings [family] move in. “One has a daughter who works at the hospital and needs to be closer to the hospital and to self-isolate from her family.” “Coronavirus has really affected everyone,” she added.

Meanwhile in Melbourne, the prestige rental market was seeing a change in pace, with landlords and tenants still keen to move quickly under the circumstances. Marshall White business development manager Amanda Smith said rental inquiries at the top end of the market were slowing as the coronavirus saw people more confined to their homes.

“We’ve had a 45 per cent drop of prospective tenant inquiries but the people who are inquiring are ready to go,” Ms Smith said. “They are out there looking and there is going to be some more choice now.”

INSIGHTS REPORT MARCH

PAGE 25

FEATURED IN REA

REALESTATE.COM.AU

News Buying a home amid the COVID-19 crisis There’s no denying it’s a strange and alarming time amid the global coronavirus pandemic. But, fortunately, life doesn’t simply stop because of a virus outbreak. written by REA

1. Assess your own situation While the outbreak is one matter, the economic aftershock of the pandemic is another. Chief economist at realestate.com.au Nerida Conisbee explains that conditions can change rapidly, both positively and negatively, so we need to take it day by day. If you find yourself working in an industry that is currently affected or will possibly be affected then you need to take a realistic look at the likelihood of continued employment. If you feel comfortable, or as comfortable as you can be, then now could be a great time to find that dream home.

Picture: realestate.com.au

2. Seek out the best advice If you’re at all in doubt about heading into a long-term relationship with the bank and a new mortgage then bend the ear of all the knowledgable experts you can get your hands on. The main word we’re hearing around this current situation is “unprecedented”, so it’s unlikely you’re going to get a black-and-white answer. But the more informed you can be about all likely scenarios, the better. Bakos says that those who are feeling rattled by the headlines may well find themselves making critical mistakes if they aren’t focusing on accurate and timely sources.

Picture: Getty.

Despite the spike in listings, Ms Russell said the properties were being rented as quickly as they were listed, snapped up either by expats moving back to Australia to be close to family or medical professionals needing to self-isolate.

INSIGHTS REPORT MARCH

PAGE 26

3. Plan for the worst when it comes to your finances While it’s impossible to know exactly what the future holds you can plan for the unexpected by making sure there’s a financial buffer for you to access when times get tough. It goes without saying that the more money set aside the better, but this isn’t always possible – especially for families with kids or those working in industries affected by the COVID-19 shutdowns, such as tourism and hospitality. If you’re thinking of taking out a new mortgage, naturally you should do your best to make sure you’ll be able to service the loan going forward if you or someone else in the household loses an income.

But remember to keep the risks in perspective, says Conisbee. “Job losses may occur in the short-term, but companies will need to rehire once the pandemic abates and the economy comes back.” So, if possible, try to keep a level head and stay calm. The health crisis, however, isn’t the only thing that’s unusual, says Melbourne buyers advocate Cate Bakos – the record-low interest rates are also worth considering. “We are not only in a historically low interest rate environment, with cash rates cut again by the RBA, our current interest rate actually aids households with smaller interest repayments enabling a greater monthly surplus, and this does hold special meaning in anyone’s economic terms. “Shelter is a fundamental human need, and as we are seeing at the coalface even this week, many owner-occupier buyers are pushing hard to secure their home in the face of the global pandemic. “Heightened borrowing capacity as a result of the consecutive (and likely ‘crisis’ cuts) is unknown, but is anticipated to be stronger than the post-election bounce back. Every 25-basis-points cut we enjoy is a growing percentage of heightened capacity. “

4. Remember, property is for the long term Bakos says for those who are pre-approved, confident and informed, these buying conditions we find ourselves in could represent a great opportunity. An important thing to remember is that property, unlike other investments, is a long term purchase. Experts agree that owning the family home is a great way to ensure long-term financial security, and while markets can dip in the short term, property values will generally increase over the long term. If you’re in doubt about your financial situation, speak to your bank first and foremost. “Don’t panic sell,” Conisbee says. “It’s always best to buy in a downturn and sell in an upturn. Now is a really good time to review your portfolio.”

Bakos adds: “As Warren Buffet has famously been quoted, “Be greedy when others are fearful, and be fearful when others are greedy.”FoMeanwhile in Melbourne, the prestige rental market was seeing a change in pace, with land-

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