Benefits of Buying Investment Property During a Pandemic

Posted On Thursday, 17 September 2020 21:38

Where a lot of businesses are facing downfall because of the pandemic, real estate investment is one of those few businesses that is helping their investors make huge profits. Although real estate investors and agents both are facing a few challenges, it is still profitable for them to make a real estate investment. If they take the necessary safety precautions, they can end up making a lot of money both in the short and the long term.  

Here are a few benefits of buying investment property during a pandemic mentioned.

More Renters

People assume that it is difficult to find renters during the pandemic because lockdowns have already forced people to live in their space and avoid virtual interaction. But contrary to this belief, a lot of people are searching for better options where their kids and pets can spend quality time by staying back at their homes. More than 50% of the people are renters in most of the areas of the world. Also, those who have run out of cash to buy a new home are rushing for rental properties now. Rental properties have always been in demand before the pandemic. And it will continue to be in the future as well that makes the real estate investments safe and profitable.

Rise in Price

You can always invest in a real estate property and wait for the appreciation in the future. If you make a few calculations in your mind, you will see how your wait will be worth it at the end of the day. Two-third of the construction companies have slowed down or faced delay amid the pandemic so there won’t be any new supply in the market any time sooner. Since people will be still looking for new houses, real estate investors need to have the patience right now to make a huge profit later. 

Future of Real Estate Investment

Like other businesses, real estate investment has also entered the digital world to keep the connection between the product and the customer. Now, there isn’t any need for a middleman as people can invest their money online. During the next few years, the online connections will keep growing. When the smoke of COVID-19 gets cleared, we will hardly see any of its effects on the real estate business. So, it is one of the safest investments in this critical time for those who have the capital to spend.

Earning the Trust of Customers

The pandemic has given real estate investors a chance to earn the trust and loyalty of their customers. They need to take the safety and health of their tenants into account. It will help make them believe that the investors are catering to their current needs. They can directly engage with the tenants to develop a relationship with them. It won’t only make the investors do the right thing amid pandemic, but also their tenants will remember their efforts. 

Lending Rates

The lending rates are at their lowest in the pandemic. For instance, the repo rate is 4% right now, which is one of the lowest rates ever. The reverse repo rate has also been reduced to 3.8%. Such a massive transition in the rates has helped reduce the loan interest rates. So, buyers of real investment properties can make the most out of this situation to enjoy huge profits.

‘Real’ Assets

Investment in “REAL” assets is always a good idea. Although not all types of real estate investments might be profitable in the end, you can pick and choose those that have great potential for appreciation in the future. For instance, multifamily real estate properties are one of the best options as it provides the investor with consistent cash flow. Single-family homes are relatively less profitable but still better than letting your money depreciate in a bank.

Unlimited Options

In real estate investment, you have more options than any other type of investment. When you invest in bonds or stocks, your income is dependent on factors that are not in your control. However, real estate investment has unlimited options. Its flexibility allows you to flip, rent, develop, sell, subdivided, or even lease it according to the situation.

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