{"id":26265,"date":"2020-07-15T09:59:27","date_gmt":"2020-07-14T21:59:27","guid":{"rendered":"https:\/\/propertynoise.co.nz\/au\/?p=26265"},"modified":"2020-07-15T09:59:27","modified_gmt":"2020-07-14T21:59:27","slug":"why-2020-is-the-worst-time-to-buy-property","status":"publish","type":"post","link":"https:\/\/propertynoise.co.nz\/au\/why-2020-is-the-worst-time-to-buy-property\/","title":{"rendered":"Why 2020 is the worst time to buy property"},"content":{"rendered":"

PHOTO: Mosman, Sydney NSW. (Photographer: Brendon Thorne\/Bloomberg via Getty)<\/em><\/strong><\/p>\n

It\u2019s a bold statement, but it\u2019s true.<\/strong><\/p>\n

For some of you who are reading along right now, 2020 is absolutely the worst possible time you could consider buying a property.<\/p>\n

In fact for these people, moving forward with a real estate purchase this year would have the potential to cripple them financially, not just now but well into the future.<\/p>\n

\"Josephine<\/a><\/div>\n
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LJ Hooker | Harveys NZ CEO Josephine Kinsella departs<\/a><\/h2>\n<\/header>\n<\/div>\n

Sounds dramatic, right?\u00a0It is\u2026 but here\u2019s the truth. This statement rings true in 2020.<\/p>\n

It was also true last year. And the year before that. And in 2015, 2010, 1985, 1972\u2026<\/p>\n

The reality of real estate is that there is no \u201cbest\u201d time or \u201cworst\u201d time to buy property.\u00a0<\/strong><\/p>\n

Here\u2019s why<\/h3>\n

It\u2019s likely that you\u2019ve heard me talk about the drivers of property price growth over the years.<\/p>\n

There are so many things that determine a property\u2019s price performance and growth trajectory, many of which are well outside of your control, and which also have nothing to do with the property itself.<\/p>\n

These include, but are not limited to:<\/p>\n

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  1. The economy<\/strong>\u00a0\u2013 the performance and state of the broader economy impacts people\u2019s ability to buy and sell property as well as \u2026<\/li>\n
  2. Consumer Confidence \u2013\u00a0<\/strong>when people feel comfortable about their financial situation and their future job prospects are more likely to make big purchases like moving home or buying investment property.<\/li>\n
  3. Employment levels<\/strong>\u00a0\u2013 if the community at large is experiencing high levels of unemployment, then fewer people can afford to pay a mortgage, which reduces demand for property<\/li>\n
  4. Government policy<\/strong>\u00a0\u2013 aspects to do with tax, depreciation and home ownership grants will work to boost or reduce demand for property, particular new property in recent years, which is where the federal government\u2019s primary agenda has been.<\/li>\n
  5. Population growth<\/strong>\u00a0\u2013 or household formation to be more exact as when more people moving into an area equals more demand for housing, whether it\u2019s to buy or rent.<\/li>\n
  6. Local Demographics<\/strong>\u00a0\u2013 things like average incomes, average age,\u00a0 household structure, crime rates and employment opportunities.<\/li>\n
  7. Supply –\u00a0<\/strong>The basic economic principle of supply and demand is a fundamental property market driver of price growth.<\/li>\n
  8. Availability of credit<\/strong>\u00a0\u2013 property investment is a game of finance with some houses thrown in the middle, but even owner occupier demand is very much driven by the availability of finance and the cost of money, in other words interest rates.<\/li>\n<\/ol>\n

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