As you all know, over the last few weeks the COVID-19 has taken the world by storm and many of us are wondering what this means for our daily lives.
One of the most googled questions since the outbreak has been: “How will the Coronavirus affect house prices?” Interestingly enough, it might actually be good for the property market. With low house prices and ridiculously small interest rates, Perth is currently a great buyer’s market. But we know that people are feeling cautious and can’t take advantage of it.
And there many other questions that have arisen concerning the housing market. Ranging from reliability and security of the builder, the status of current homes under construction, homes still in planning, and the list goes on!
Here is everything you need to know so far:
What is Move Homes doing?
Here at Move Homes we’ve got a range of promotions to help people build their home (this is in addition to the Government grants!).
For more information go to our Promotions page.
If display homes are closed, how can we see your product in person?
Our reps can still take you around our displays via appointment only. All you need to do is contact one of our reps and can start your new home journey!
How can we buy if we can’t meet in person?
Our reps are working around the clock to meet your needs and are still available to talk to via phone call or video chat.
I was suppose to do a Prestart, what happens now?
Not to worry, you can still select your home colours and specs via video call with our prestart team. We have also created a digital booklet of everything you can choose from for your new home. Some of our suppliers are still open as well, so you can safely view your flooring options, stone bench tops, and laminate finishes in person.
What if I was suppose to have a site meeting?
Unfortunately, due to restrictions and the safety of everyone, our on site meetings with clients and supervisors are put on hold except for Practical Completion Inspections and handover meetings. We will be sending through more photos of your construction progress to keep you in the loop, so you’ll know exactly what’s going on.
What if I have a maintenance issue?
For the time being, all non-essential maintenance items – these being cosmetic issues like loose door handles, wall cracks etc – will be put on hold and attended to on a later date. However, if you have an electrical, plumbing (leaking taps), appliance, or hot water unit issue then notify maintenance as soon as possible.
Finance and Home Loan Questions
How will COVID-19 affect house prices?
Currently interest rates are already ridiculously low at 0.25 per cent – the lowest they’ve ever been! Many banks are passing on the rate cuts and when combined with WA household fees and charges being frozen until July 2021, it makes it an incredibly attractive time to get into the market with low repayments.
There will be less buyers in the market as businesses reduce their opening hours and staff. Unfortunately, this will result in unemployment figures to rise. While Government initiatives like the Small Business Stimulus Package will ease some financial burden, there will be some first home buyers who simply can’t afford to buy right now because of their employment uncertainty. Until the economy stabilises and confidence in increases, this cohort of buyers will be sitting on the sidelines.
A shortage of rental homes will occur. Perth has nearly absorbed 1 in 5 rental listings in the last 12 months, decreasing from 6,714 to 5,481 rentals advertised on REIWA. Meanwhile, BIS Oxford Economics are forecasting that new dwelling commencements will be cut by 33,000 homes in the coming financial year. This means there will be more demand for rentals and less supply of new homes.
It’s expected that 2020 will see the worst of the coronavirus with a rebound set to occur in either the second half of the year or at latest 2021. Remember the 2008 Global Financial Crisis? Property prices in Australia had a minimal reduction and Perth had an incredible growth rate for the following 7 years.
If you are fortunate to have a stable income and your job is secure, now is a great time to buy. House prices in Perth are already low and with low interest rates and reduced demand, it’s a buyers’ market.
What if I still want to buy a house, but I’m not ready?
Use this time to do your research. Find out your current borrowing capacity so you can attend to any issues. Understand the home building process and what to look for in a builder. Five years from now this outbreak could have little to no influence on where the Australian market ends up, so use this time to your advantage.
What if I can’t afford to pay my home loan right now?
Fortunately, the 4 big banks in Australia and many other lenders are looking to help the community where they can with mortgage holidays. This allows clients to defer their home loan repayments between 6 to 12 months depending on your financial situation.
You can find the major banks press releases below to find out more information about their COVID-19 offerings:
What about Keystart?
Keystart is also lending a helping hand to their clients as well!
However, not only are they allowing clients to defer their repayments, but they are also completely waiving interest repayments on a case-by-case basis for up to 6 months. Whereas most banks are just compounding the interest for a later date. There has never been more protections in place for home owners looking to get into their first home.
Builder Reliability and Security Questions
What situation is Move Homes and The Prime Group in?
We are in a great situation, as we have been around for 51 years and built a very solid backbone over that time including Ellenbrook Town Centre, Baldivis Square and multiple residential investment properties. This allows us to have diversified income streams with; commercial tenants, residential tenants, land developments and construction. We also own our office which isn’t as common as you think so don’t have a lease to pay!
Will you be shut down due to COVID-19’s lock-down? Will building continue?
We are very much open for business at the moment and it seems home construction is unlikely to be shut down due to the nature of the work, small teams in open air.
Will you survive this downturn, i.e. be able to close up and reopen back to normal business?
Absolutely! Being a family business means we will all be working hard no matter the circumstances. We run a very tight team and don’t need large volumes of homes to maintain our cash flow.
If you go under what happens to my house and money?
You are covered and the bank and yourself will find another builder to finish your home.
Is there insurance for non-completion or for the inability of the builder to complete the build?
Yes, every builder needs to have Home Indemnity Insurance as the builder can’t get a building permit without one. This insurance covers the client if the builder cannot complete the works. So if something were to happens to us your home will still be built. In saying that, we aren’t going anywhere!
Wanna feel secure?
If you are interested in learning more about our limited offer, please register your interest by giving us a call or filling our the form below. One of our friendly new home specialists will get back to you as soon as possible.
