COVID and property - time to invest?

As the lockdown restrictions begin to ease, you may be considering whether now is a good time to invest in property.

There are the more seasoned investors who have felt the sting of losses on the stock market that are looking for a safer less volatile way to invest their money. And the perennial savers who have never invested before but are having to consider alternatives ways to grow their wealth as their traditional savings account are now paying next to no return on their hard earned cash.

So the question of course is now a good time to invest?

Since the loosening of lockdown, means listings, viewings, and sales are taking place as normal, and they are doing so at an increased due to pent up demand.

Savills Research has carried out a sentiment survey of the Savills global residential network to assess how COVID-19 is changing the residential property market as restrictions lift and what the future trends might be. In a promising result for property markets globally, 78% of respondents said that most or almost all of the buyers in the areas they cover are still looking for a new property. Similarly, the majority of vendors across over 90% of markets surveyed are still planning to sell their properties. This sustained level of interest from both buyers and vendors bodes well for the resumption of transactions as restrictions continue to ease. Most importantly, some markets are even beginning to see more activity with 10% of respondents reporting that since lockdowns lifted, there are more new applicants than the same time last year. The general sentiment across survey respondents is that things are looking positive, but the market hasn’t quite recovered yet. Respondents in China, which has been out of lockdown for the longest, stated that the market took two to three months to recover, though activity has largely returned to normal. Savills also say that the key to growth will be increased confidence from market participants and the resumption of travel after lockdowns are lifted and borders are reopened. As restrictions have eased, survey respondents are reporting increased demand, particularly from domestic buyers, and are anticipating stronger activity levels going forwards. Given the Government announcement this week that Brit’s can now travel abroad and some visitors can come to the UK without having to quarantine, we believe that demand for properties looks promising. So it is our view that the overall landscape looks promising with strong organic demand coupled with more buyers entering the market as a result of pent up demand.

And given the abysmal returns traditional savers are getting from their banks and the instability of the stock market and other commodities, now is the perfect time to invest in property. Where it gets really interesting is on the matter of prices. According to Savills, 78% of respondents stated that buyers were expecting to see lower prices than before lockdown. Conversely, 78% of vendors are anticipating pricing to remain the same. Covid-19 does not mean that sellers are willing to accept under market value offers, in fact according to Rightmove, prices actually rose 2% during lockdown.

https://www.housingtoday.co.uk/news/house-prices-rose-2-in-lockdown-claims-rightmove/5106498.article.

So why invest with us? Our experience and knowledge of local markets means that we invest your money in the right property to ensure you get the maximum return in the shortest time frame. The idea that anyone can invest in property is widely held but it is this view that causes people to make losses on their investments. First time investors usually pay over the odds and come to find that their flip or rental is only worth slightly more than their investment, making the process a hard earned waste of time, and sometimes of money. If you are looking to invest in property we think you are making a wise decision. If you invest with us, then you are making the safest choice.

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