Now is the best time to invest in real estate and here are the reasons why.
Let’s face it, the advent of COVID-19 in the world has caused a lot of turmoil and distress into our lives especially in the financial aspect. Many people have lost their jobs as businesses were kept in abeyance due to lockdowns and quarantines. But then amazingly, some see this period as a chance to purchase real estate properties. You may think it as odd but the best type of venture on Earth is still Earth and investing in real estate during pandemic is a good move for all of us.
Perhaps you may ask if it is secure to invest in real estate during pandemic. Come to think of it, epidemic like SAR or Mers Cov had a great impact on people’s lives in the past especially in Asia, it resulted to economic downturn. But it is in unsettling times that opportunities are created for property investors because assets are de-valued. Let’s take a look at some of the reasons why now is the best time to invest in real estate in the US while we are still a pandemic.
Best Time to Invest in Real Estate with Low Interest Rates
One of the investment tips from experts say that at this time of world crisis, bank interest rates have fallen to its lowest percentage level at 5%. This is quite lower than the 10% that banks usually offers before the outset of COVID-19. If interest rates are lower, there is a huge influence on the value of borrowing power and the cost of loans from the banks will be cheaper. With that in mind, it is a good reason of investing in real estate during pandemic.
When bank loans ease, you become more flexible in your budget. You can now purchase the property you’ve always wanted to have for so long. This will be a chance for you to go an extra mile with your budget while making a purchase. Loosening on home interest loans gives you the best opportunity of investing in real estate during pandemic.
Real Estate This Time Offers the Best Prices
In this pandemic, people are in short of cash in order to keep up with their lifestyles. Because of this, some have to sell their properties at lower prices. They even have to give other lucrative offers to attract buyers for their lands. And property investors love tempting deals on their purchases, the more attractive the offer the better. Investing in real estate during pandemic gives you the opportunity to buy properties at their attractive prices.
Being an investor, this is the right moment to take advantage of the strong points of low deal costs. In addition to it, the flexibility in payment option makes it as easy as ABC to invest in real estate during pandemic. When it will come to pass, prices in properties are expected to rise once more so now is the time to venture in real estate since you will but for less but will sell the property or rent out for more in the future.
Real Estate is a Good Long Term Investment
Purchasing a good property is not a short- term but a long-term investment. And it will not provide you an instant profit but in due course of time that land which you will purchase today will provide you a profitable passive income in the coming years. Investing in real estate during pandemic will give you a high yield in the long run. So if you are considering for a good long-term investment, buying a property at this point in time is really a great option.
One of the lessons we’ve learned from this pandemic is that employment is not promised. More than that, the unprecedented occurrences that came along with COVID-19 have emptied out our savings. We’ve come to realize that it is foremost to have other sources of income that gives premiums sooner. Having a property to rent out can help address this financial need, so investing in real estate during pandemic is not only a sound long-term investment but a chance to earn a steady source of income.
Real Estate Appreciates in Value
One of the benefits of investing in real estate during pandemic is that you can make money out of it in the future through rental income. And a profit from property-generated business scheme appreciates in time. The value of real estate increases in the course of time and you can also make a good profit when it’s time to sell your property. The rate for renting out tends to rise as well which gives you a higher cash flow.
Real estate properties are lasting investments with indelible values, be it a condominium unit or land. As with other purchases there will always be various risks that can shake off their value like stocks, for instance, considering the unpredictability of markets. Your investment could plummet to nil. Investing in real estate during pandemic will not lose its value but will increase as time goes by.
This pandemic proved that being introspective on top of finances must be the utmost priority for all of us. And investing in real estate during pandemic is an incomparable key for financial stability. A property is not liquid, this is a concrete asset which you can have it with a stable cash flow on your investment. It is more resilient with a lot of benefits.
House values and rents will always continue to soar. The virus may not disappear sooner than we think but life has to go on. To outlast this pandemic, having the right investment makes us secure. Investing in estate during real pandemic is a good venture because people will always need better homes to live as the virus thrive in limited spaces.
Read the Entire Real Estate Series
- The Great 2021 Real Estate Reset and the Only Properties I’m Buying
- Real Estate Investing vs. Stocks: Pros and Cons
- Real Estate 101: Top 4 Tips in Buying a Home
- How to Start a Real Estate Investment Group
- The Truth about Passive Income Real Estate Investing
About the Author
Joseph Hogue is a financial expert and investment analyst. After serving in the Marine Corps, he started his career investing in real estate before becoming an investment analyst for some of the largest private investors. He's appeared on Bloomberg and on CNBC as an investment expert and has published ten books in personal finance. Now he helps investors reach their financial goals and invest in the stock market with some of the same advice he used when working for the rich.