Investing in real estate has always been a smart way to make your money go further. Many people have started successful businesses by doing this, while just as many business owners have increased profits by investing them back into real estate. Any other time, you’d say that investing in property was a fantastic idea. But, with COVID-19 still hanging about, is it a wise thing to do? Today, we explore this idea in more depth.
The housing market
Your main concern is the housing market – is it good right now? This depends on where you are in the world, but it’s generally agreed that COVID-19 has made it a buyer’s market. This means there are more opportunities for buyers than sellers. The economy is down, meaning people have less money to spend – or less inclination to spend money. As such, house prices decrease. Now, it’s the perfect time to acquire some good real estate for a fantastic price. History shows that buyer’s markets don’t stay that way forever. Eventually, the market will flip and prices will rise. If you invest now, you can sell for bigger profits in the future.
The investment process
Arguably, the way you invest in houses is the biggest drawback during this difficult time. As the world slowly tries to get used to a new normal, we have many restrictions in place. Even places like New Zealand and China – who have largely dealt with the pandemic – are nowhere near returning to how things used to be. This has an impact on real estate as it changes the way you buy.
Previously, you could visit a real estate agent and view lots of different houses. Now, that’s not really allowed. You can’t walk around someone’s house as it risks spreading the virus if someone has it without realizing it. Ironically, this is another factor that has reduced house prices as most people can’t go out and buy them.
However, there are alternatives to this. The most popular of which is using virtual technology to deal with the whole process. You have things like Meriton virtual appointments that let you speak to real estate agents face-to-face. They can also include virtual tours to look around properties. As such, you can invest in a home without needing to leave your own house – and with confidence that it’s a good purchase. It’s not as perfect as seeing the property in person, but it does show that investing is still possible.
Conclusion
To conclude, is it smart to invest in real estate during COVID-19? Yes, well, it can be! That’s an ambiguous answer, but it’s the best we can do right now. If you are comfortable dealing with a virtual process and not viewing house in real life, then go for it. The market is in your favor and you can find some great deals.
When you think about it, making money is all about taking opportunities. You have a rare opportunity where the housing market is on a slight decline after rising for years. So, take a chance, and you may make a sizeable profit in the future.
