Are you wondering if it's better to sell or rent during this time? Hopefully this video provides some helpful information for you!Posted by Beyond Property Management Pty Ltd on Monday, April 27, 2020
Transcript for: ‘Is it Better to Rent or Sell During This Time?’
“Hi I’m Heather Jopson from Beyond Property Management (Beyond PM) and I just wanted to give a little bit of perspective and reassurance today to landlords out there, who are experience a lot of panic about their rental return, in the current COVID-19 environment.
So, let’s just have a look at some numbers; These are not predictions, they’re just numbers to provide some reassurance and perspective on investment properties out there.
So, if you have a $500,000 house and if this sales market experiences a 10% downturn, then you will cash up or ‘realise’ a $50,000 loss compared to what your property used to be worth.
If the rental market experiences a similar downturn, then you may face, on a $500 dollar per week property, a $2,600-year loss over the coming 12 months. If you chose to rent out a home instead of sell it.
There are ways you can offset that as well; You can go to your bank and negotiate an interest rate reduction. Because interest rates are really low at the moment.
So, in real terms, you may actually not experience a lower net return on your property. So, I hope this gives some perspective, some potential numbers without this being a prediction of any sort. But, just to help people start thinking in a numbers-based, investor-type mindset again, rather than in the chaos and panic out there.
We hope that’s been helpful.