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SEASON 2

Episode 13

A CHAT WITH AMY LUNARDI

PROPERTY IN THE TIME OF COVID

S2 E13_Banner_Amy Lunardi

No one can predict the future. No one can process the complexities of the synchronous dual pandemics of COVID-19 and fear. No one can foretell the impact they will have on the economy, let alone the specific effect they will have on the housing market. As a result of this uncertainty, our social media feeds fill up with uninformed opinions rather than well-researched facts. This breeds ignorance and misinformation which must be dodged at a time like this.

Predictions are best avoided and in their place, preparation and innovation must be adopted. Our guest today is Amy Lunardi - licensed real estate agent, buyer’s advocate, and one-quarter of Melbourne-based independent property buyers advocate company Cate Bakos Property. If I had to sum up her message in one sentence (albeit a self-serving one): get professional help with property investing as it is complex enough even without COVID-19 muddying the waters.

Amy and Cate (from Cate Bakos Property) have purchased 9 properties in the 2 weeks prior to recording this episode (which was recorded in the first week of April 2020) due to uncertainty in the market. Liquidation of off-market properties has sky-rocketed in an effort to bring temporary security to nervous property-owners during this global crisis. Furthermore, vendors are limiting people through the door due to contagion concerns resulting in buyer’s agents restricting their time to qualified, motivated buyers only.

Topics covered include current supply and demand, the importance of being a qualified buyer, recognising an opportunity when you see one, finding the right property for you rather than a ‘bargain’, record low interest rates, and making sense of the market in a crisis.

Join Amy and Rebeka as they don their masks, brandish their soap, and get the #stayathome picket sign out to fend off misinformation and ignorance, and keep you breathing the fresh air of property investing confidence.

If you have a topic or question you’d like us to cover, contact us here.

SOME TOPICS THAT WE COVER:

[3:00] - Principles to avoiding panic decisions
[3:30] - Be very careful who you listen to
[4:15] - Dramatic news sells - be sure of the information you’re consuming
[5:25] -The length of time will be the crucial factor in determining how this will affect the property market, and that is not something that can be predicted at this point
[6:30] - Predictions can be very dangerous
[7:45] - Timing the market is impossible - it’s time in the market that’s important
[8:35] - No one can predict human behaviour
[9:45]  - Assessing whether buying a home is the right choice for you right now
[10:10] - What’s happening in the market right now (early April, 2020)
[10:50] - March was a very high sales month in the property market, and the reasons why
[12:30] - A lot of different types of buyers are approaching this as a good time to buy for their individual circumstances
[13:20] - The number of off market sales has increased
[15:30] - The demand to sell at the moment is high
[16:05] - Right now we have a short term over supply because of the panic, but this will subside
[17:15] - Don’t buy a property for the purpose of just getting a bargain
[18:55] - Vendors who are particularly motivated at the moment may be selling at a discount
[19:40] - Building a relationship with the agents is still paramount, the offers will still be presented to the qualified buyers that they have pre-existing relationships with first
[20:00] - Looking at human behaviour from the last downturn to inform what could take place this time around with some similar circumstances
[21:35] - The role fear played in causing the downturn to go further than it should have
[23:45] - A house is very personal and for your specific needs, there might not be very many options at any given time
[25:27] - People don’t unload their quality properties if they’re fearful
[27:10] - Understanding what your risk profile is
[28:30] - The different investment asset classes and how they differ
[29:12] - Always decide on the asset class before the asset
[30:00] - Deciding on what your goals are for investing in the short, medium and long term
[31:00] - Developing a strategy
[33:10] - How the low interest rate environment is benefiting investors
[33:50] - The risk vs reward journey
[34:45] - The benefits of a diversified portfolio
[36:10] - Understanding opportunity cost
[39:00] - Home loan freezes and the time value of money
[41:00] - Investors need good buffers - always having a good amount of money
[43:00] - Mitigating risk by being critical of your asset selection
[43:50] - The importance of doing a cashflow analysis as an investor
[45:00] - Breaking down the eviction moratorium
[49:47] - Seek the advice of a professional and apply decisions to your own personal circumstances

LINKS MENTIONED IN THIS EPISODE:

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