Are you thinking about buying a house but are uncertain whether you should take the leap? History has some interesting lessons.
Property Investment Professionals of Australia (PIPA) Chairman Peter Koulizos said, “Today’s unemployment rate of 7.4 per cent for June was not unexpected and is set to increase over coming months.
“However, the number of employed persons increased at the same time with more people seeking work around the national last month as restrictions started to ease in many locations.
“The unemployment rate has been trending down for the past four decades, so it’s likely that we will see an unpalatably high number in coming months. “It’s important to remember that our economy and property markets have survived recessions before and will do again this time, too.
“In fact, we are better placed than in previous downturns because of the many financial support packages, such as JobKeeper and JobSeeker, as well as mortgage repayment pauses available for borrowers.
“Homeowners and property investors should take comfort in the resilience of real estate during previous economic upheavals.
“Recent PIPA research found that five years after each of the four recessions or economic downturns since the early 1970s, capital city house prices often increased significantly.
“In fact, looking back over the past 50 years, house prices were higher five years after a recessions or downturn each time. “Some locations performed better than others, mostly likely due to the local economic factors after each economic contraction.
“Property has shown its resilience through economic shocks before and we have no reason to expect it won’t do so again. There is no need to panic.”
Alexandra Eildon, Marysville Standard, 22 July 2020