June 15, 2024

Covid-19 and Real Estate: Is this the Right Time to Buy a Property?

Is this the Right Time to Buy a Property

Covid-19 changed the way we lived. It affected almost all parts of the world and the consequences are huge. All financial sectors were affected in a short period. While some industries and businesses tried continuing their business online, for some business owners it was not possible. Not all businesses supported working from home solutions. The real estate or property market, at first faced the same issue. They couldn’t easily find a way to engage with possible clients. However, some of the real estate companies came up with the idea about virtual property visits which was successful in some aspects. My question is, is this the right time to buy a property? Do you like buying property without physically visiting?

Do you like to buy a property without visiting?

This was my first concern when I heard about virtual property views. I remember the days which we visited property by property when we wanted to rent an apartment. It was not an easy task. With the help of a property agent, we could find some rental properties which suited our requirements; however, until we visited the property, we didn’t take any decision. In the end, when we found the most suitable apartment for us to live we have spent our time visiting many places.

It was the same when we wanted to purchase our first apartment in Singapore. By contacting a property agent, we started our house hunting. It was not a quick decision. It was also not about just buying a home. We considered many things before buying our current home including the loan repayment.

We had to apply for a bank loan to afford our first home in Singapore. Although the property agent provided us with the necessary details, we always did our calculations. A mortgage calculator is a handy tool for finding details such as repayment options, total interest to pay and mortgage balance. Therefore We referred to a few mortgage calculators to find out the repayment options and monthly payment. Not only the payment, the amount we pay as interest was equally important for us.

Effect of Covid-19 on the property market

Now, my concern is about buying a new home which has more space. As the kid grows, we find that we need extra space for him. But, it is the time we live with a pandemic. And I am not interested in buying a home by just visiting an apartment virtually.

However, I found that it was a success up to some extent. A recent post shared by The Straits Times indicates that the huge drop in sales in the property market is because people cannot visit showrooms during the circuit breaker period. Although it is true, there are also some sales to go through when sellers and buyers discuss via video meetings. Virtual meetings, emails and phone communication helped buyers to discuss with the sellers and property agents.

Effect of Covid-19 on the property market

 Obviously, there was an effect on the property market during the pandemic. Although we still live in a world with the threat of covid-19, the country is becoming normal. Yes, it is not normal, but a new normal. Sales were dropped during the last year. However, a recent post that appeared in the Singapore Business review says that the Singapore real estate market to witness growth in 2021. It is good news. There is hope in it. You can check the article here.

For me, I think I will be able to think of a new property with physical house visits before purchasing.

Finally, I will ask the same question as in the article topic. Is this the right time to buy a property? What do you think?

Amila Gamage Wickramarachchi

Amila Gamage Wickramarachchi is the founder of this blog. She shares her parenting and lifestyle experiences of raising a child in Singapore.

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