Let’s face it. Business is about opportunities. While nobody wants the economy to be down, the coronavirus is tearing America’s economy apart like a piece of paper. But, don’t fret. History will tell us opportunities do abound in such times. Of course, this is assuming we know where to look. Take the case of Procter & Gamble (P&G) during the Depression. Instead of folding, the soap-selling company went on the attack. They put on aggressive ads on the radio daily. The effect is astounding. P&G emerged “smelling better” than before tough times hit.
The million-dollar question is what about buying real estate? Is it the right avenue to invest during a COVID-19 pandemic? Will it generate soaring profits after the virus is contained? Well, know that there certainly are businesses that thrived during the pandemic. For instance, Jeff Bezos is worth way more during the pandemic than before. The Amazon founder has become the first person to reach the $200-billion mark in value. As always, it’s’ all about timing. And there may never be a better time to look into real estate than during these times.
The Case for Investing
It’s easy to drool over the success of Jeff Bezos. Bear in mind, however, that it took time for him to become the centibillionaire that he was. Forbes notes that he is the first-ever billionaire worth $200 billion. But he was patient.
That should also be your approach when investing in real estate. Due diligence should drive your way.
The truth is every investor is holding their money tight these days. The good news is those who choose to invest are most likely to gun for real estate. A survey done by Hargreaves Landsdown showed that those who want to invest look into real estate properties more than any other option during the pandemic.
As observed, lending platforms are performing better even during the pandemic. Consequently, the search for the most manageable mortgage rates could be less of an uphill climb with more options available. Indeed, financing costs are getting low.
And all the buzz is apparent in the advancement of property tech in recent times.
Technology to the Rescue
Indeed, technology came to real estate’s rescue. As people are hunkered down at home, the convenience of digitization became more pronounced. So instead of having to view houses for sale personally, you can now view things online right in the comfort of home.
Proptech is getting a lot of attention recently. Short for property-technology platforms, proptech simplifies the buying and selling process of real estate. Proptech provides mostly online solutions. And it’s growing by leaps and bounds. To date, these start-up companies are on track to reach $10 billion in investments. Truly, it has attracted more investments than any other American business.
Indeed, real estate sales are happening these days online. And some realtors are calling it a blessing. Many house-hunting investors had greater time to process things and interact. With all the time in the world, online interaction such as emails and webinars are now on an uptick.
The Case for Keeping Your Money
Investing in real estate is always on a case-to-case basis. The property that you want to acquire has to be vetted with care. That means you need to look into its location, the size of the investment, and do your due diligence.
At the onset of the pandemic, many property owners were hesitant to sell, wary of the situation. But things are starting to change as government subsidies are running low. And people need cash.
Condo units are not doing too well these times. Many investors are leery about the prospects of going to your place in an elevator every time. Such a tight box is looked down upon when the virus is still running amok.
To note, residential properties are looking up. Owning a single-family home means you’re far safer from direct interaction with strangers.
Never forget though that we are still within a pandemic. And these are volatile times. While there are good reasons why you should go for it, think twice before you do. Check your cash flow. If it’s not well established, then getting into real estate may have to wait. In this regard, checking out a financial investment expert may be wise.
You need to think long-term. You have to remember that real estate unlike gambling is not a get-rich-quick scheme. Those who want to gain a fast buck are bound to lose. But if you’re gunning for long-term gains, real estate at this time can be a treasure trove.