The coronavirus pandemic has sent shock waves in economies all over the world. As the global recession has hit several industries, it has also given way for other industries to thrive. While the real estate industry is among the hardest hit, it opens new doors for potential investors to exploit. Real estate experts like Brian Boals insist that an economic downturn is one of the best times to invest in the property market. When prices are low, it gives you the opportunity to strike up great deals on the real estate investment market.
If you’re still unsure if it is smart to invest in real estate, don’t fret. These are some of the reasons why you should gain more confidence with real estate investing during these times.
Real Estate is More Stable
Reasons to Consider Real Estate Investing During the Pandemic (Image Source: Unsplash)
Compared to other types of investments, real estate offers stability and predictability. These two factors are what make it one of the foolproof types of investment products. Unlike stocks and other forms of volatile investments, the long-term benefits of real estate investing are undeniable.
It is a physical asset so it lacks the same volatility as stocks and trades investing. Even if the value might depreciate now, it will eventually recover and you will be able to recoup your investment. As long as you hold on to your physical asset, you should not have to worry about losses.
As an investor, this is also a good time to buy real estate because prices are low. In the 2008 global recession, the cost of properties dropped by as much as 25%. This means that you can get real estate properties as an investment at considerably lower prices. If you plan on buying a home as an investment anyway, it is a good time to do so while the prices are low.
Demand for Real Estate Will Continue to Exist
Even during a recession, people will continue to seek out spaces to live, work, and access services. For this reason, real estate investments will remain to be high in demand. In fact, as the economy re-opens, it will grow in demand more than ever. The market will continue to exist, regardless of the economic conditions. Even if the value of real estate may change on paper, its actual value will always be there.
To make your investment safer, it is a good idea to stick to residential real estate such as homes or multi-dwelling spaces. Unlike commercial spaces such as offices and retail spaces, residential real estate is less likely going to be affected by an economic crisis.
Buying a Home
If you are planning to buy a home during the pandemic, you need to be smart about your options. Location is still an important consideration. You need to do extensive research to find the best place to live in Colorado, for instance. Whether you are buying a home as a single individual or for a family, you need to be prudent about your choice.
Work with an experienced Colorado Springs real estate agent so you can identify the best neighborhoods. Whether you are looking to live in that home for good or eventually resell it, identifying the best neighborhoods can give you more value for your investment.
Of course, there will be some short-term difficulties involved with buying a home since in-person viewing would be impossible. Even so, it is a good time if you want to exploit the lowered interest rates in a bid to stimulate the global economy. This means that it is cheaper to borrow right now, which is perfect for anyone that wants to take out a mortgage loan. If you have adequate finances, this is a good way to ease up on your finances a bit. The same can also be said if you are trying to refinance your current home.
Real Estate Investing: Looking Ahead
The recession is a good time to invest in real estate. (Image Source: Unsplash)
Crisis is a catalyst for change. When a crisis happens, society is forced to adapt in order to survive. The same is true with any industry, not just for real estate. Global crisis affects the decision-making process of individuals who are affected by it. When it comes to real estate, though, the effects won’t be seen or felt until a few months or years from now.
So, how do you determine if investing in real estate now would be a smart decision? You can use the same approach as you normally would even without the current situation. The real estate market will remain stable and so will the demand for it. You can make decisions based on your own personal circumstances. If you have adequate finances or have saved up for a real estate investment, go for it. However, if your livelihood is affected by the crisis and you don’t think you can afford mortgage payments yet, hold off on your decision to invest in real estate.
The real estate industry is one of the most resilient ones so you can expect it to recover soon. During times of economic hardship, real estate remains as one of the safest types of investment out there. If you have your sight set on making an investment, you might as well do it now while interest rates have gone down and prices are at an all-time low.
Consult Brian Boals Now!
Are you planning to buy a home or invest in a real estate property during the pandemic? Real estate investing of any kind is scary in itself. It becomes even scarier when you are taking that huge financial leap during a time of economic downturn. If you are not sure about your decision or you need professional guidance, consult with Brian Boals. His expertise in Colorado Springs real estate and the real estate investment market will help you make an informed decision. Learn more about how his team can help you out.
If you have any specific questions about real estate investing during the time of pandemic, don’t hesitate to contact the team. With professional guidance, you can make a smarter choice about your investment and make it count.