News
23/11/2020

Buying a house during a pandemic: Pros and Cons

Buying a house during a pandemic

Buying a house at any time can be a long and stressful experience. Buying during a pandemic raises its own set of challenges.

There are pros and cons for homebuyers looking to buy house and land packages in South East Melbourne during a pandemic and you should carefully consider both before buying a house.

Pros

While you may be hesitant to buy a new home during a pandemic, house hunting during such a challenging time can have potential benefits.

Less competition

During the uncertainty of a pandemic, fewer people may be in a position to buy a new home. This results in less competition for houses, potentially making it easier for you to buy a house in the area you want within your price range. With people unable to travel, there will also be less competition from interstate or international buyers and investors.

Many buyers may hold off purchasing a home during a pandemic due to uncertainty of their finances. People may be less confident in taking out loans if their job and income are at risk, causing them to wait.

Drop in house prices

The pandemic has had an impact on house prices, with rates and house prices experiencing record lows.

Consumer confidence and job security have a big impact on the decision to purchase a home resulting in fewer house hunters during this time, and with less potential buyers, houses prices are not as likely to get driven up.

With fewer potential buyers, this may motivate sellers to be more flexible on the price, potentially allowing you to get a better deal on a new home. For those with their finances in order, this can be a good opportunity to buy house and land packages in South East Melbourne.

Time to research

With people spending more time at home during the pandemic, you may find yourself with more time to thoroughly research the housing market. You can take the time to find the right home for you and be more informed on real estate in the areas you’re looking to buy.

It can also be a good time to find a reputable and knowledgeable real estate agent to share the ins and outs of the housing market. They can help guide you through the current market rates and help you find a property for the right price.

Convenient virtual viewing from your home

Even during a pandemic, you can still view houses. In instances where physical viewings are not possible, many real estate agents have provided virtual tours. This can be a quicker and more convenient way of viewing homes for many.

With fewer in-person auctions and inspections and these shifting online, there may be a drop in the number of people viewing properties, which can improve your chances.

Cons

If you’re considering buying a house during a pandemic it’s important to ensure you consider the potential negatives, and if it’s the best time for you to buy your dream home.

Fewer properties on the market

People may be less inclined to sell during a pandemic, which can result in fewer houses on the market to choose from. You might find that properties in the area you like, such as house and land packages in South East Melbourne, are not coming up for sale as regularly.

People may wait to sell their homes during a pandemic, as the chance of them getting a higher price may be reduced and they know they might have to settle for a lower price then they would like. They might choose to wait until the housing market is more secure and they can attract more bidders.

With your options limited, you could end up having to buy a house that’s not your dream house or not in the exact area you were hoping to buy in, or you’ll have to wait longer before buying your new home.

There may be more risk

During a pandemic, job security is less certain. There’s always the chance your financial situation could change at any time, but during a pandemic, the chances increase. It’s important to ensure your finances are secure before buying a house.

People looking to buy a home may experience a wage cut or even loss of a job, which can impact them being able to apply for a loan, or result in an existing application falling through.

Low-interest rates mean lower home loan repayments. Banks may be tightening their lending policies, which could make it harder to secure a home loan.

If your job is secure and you have your finances in order, you will have a better chance of getting a home loan approval, as lenders will feel confident in your ability to make repayments.

May not get to personally check the home before buying

While virtual tours are available, it’s not always the same as seeing a property in person and getting a good feel for a house. Ask for as many photos and videos as possible to try to get the best idea of what a house is like.

Even still, it can be hard to spot everything, especially as what you see will be limited to what the realtor will show you.