As Melbourne’s second lockdown comes to a close, a frenzy of transactions has been predicted by property analysts, says Mark Davis, principal – investment lending manager of Top 10 brokerage ALIC. According to the Melbourne broker, who specialises in providing finance solutions for wealth building investors, now is the time to ensure investor clients are ready to take advantage of the opportunities ahead.
Sellers have been “sitting on their hands”
Melbourne property investors have been significantly impacted by the second wave of lockdown, which has just started to wind back after nearly two months. According to Davis, limited stock on the market and the inability to inspect properties has meant a sizeable drop in purchases for ALIC, which has been running at about 50% of its usual volumes.
“It has basically shut down our property market here.”
“There has been no inspections or stock on the market because people won’t advertise and leave it on the market for a long time.”
“People are sitting on their hands and waiting until the 26th of October.”
Instead, investor clients have been looking interstate to purchase, he says, with other markets around the country performing well, according to the experts ALIC deal with.
Waking up to a frenzy of property
As the lockdown draws to a close, the sleeping Melbourne market has been tipped to wake up big time by property experts, with some predicting a “frenzy” of activity.
While this seems hard to believe since there hasn’t been a frenzy for some time, says Davis, there have been many people making major lifestyle changes; with divorces, downgrades and movements away from the city likely over the next six months.
“If there is going to be a frenzy of stock it’s because of those reasons. Everyone is having a rethink.”
“Staff are learning to work from home.”
“We’re all adapting enormously.”
How brokers can assist investor clients
With an increase in property transactions on the cards for Melbourne, there is also a lot of upside for brokers in the market – something Davis is preparing for by reaching out to all of his clients and making sure those with an appetite to invest are finance ready.
“From a banking and lending position for investors, there are a lot of opportunities throughout these times.”
“We interview the top three property advisors in the country every month and they are all of the opinion that this might be either a 5% drop or a 5% increase.”
Davis says the pandemic has created a buyers’ market that brokers can leverage if they are well prepared.
“Brokers should be dealing with clients who have the appetite and are open to this type of market.”
“There’s always a silver lining and we need to be ready and open to what those opportunities are.”