The COVID-19 coronavirus has affected the way we live and work…and the housing market is no exception.
While the long-term impact of a pandemic like COVID-19 on house prices has yet to be played out, the immediate outlook is uncertain.
Some people are reacting by sitting tight and waiting for the housing market to smooth out.
But it may not be so easy to put your plans on hold.
- You might have pre-approval for a home loan.
- You might need to get into a school zone for the start of the year.
- You might have a baby on the way.
AMP financial adviser Di Charman says it’s important to take account of your financial wellbeing and general wellbeing at a time like this, especially if you have concerns about reduced working hours or lack of work.
But with property settlements still going through despite the coronavirus restrictions, Di sheds some light on the topic for Australian home buyers and sellers based on her 20 years of experience as a financial adviser.
“We’re in a very fluid situation right now that’s evolving every day, so take a step back and view the wider picture, whether you’re buying or selling, before making any big decisions.
“Take the time to take stock of your financial assets, everything from income to property to super. Identify your financial commitments across the board to see the areas where you need assistance, so you can go and get it, whether that’s from the government or your financial services provider.”
Di’s tips for home buyers during COVID-19
“If you’re earlier in the buying process, you might be looking to put that off at the moment, whether you’re upgrading or relocating completely.
"It might be time to hit the pause button and take a moment to think about all considerations when buying a house or property. There’s so much more to buying a house then just ‘buying the house’ - and a number of other expenses that are incurred in this process.”
Di’s tips for home sellers during COVID-19
“You may need to start rethinking your timings, if you can. Your wider financial situation might have changed as a result and it might be in your best interest to hold on selling property for now.
"If you do need to sell more quickly, it’s all about timings and reading the current market. With the market being as fluid as it currently is, it is understandable that people would be reluctant to sell.
"Take stock of all your assets, your current financial situation and also your general living situation. Ask yourself, ‘is now really the time to be selling?”
This article represents the views of the author and does not necessarily reflect the views of AMP.
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