Reading Trends: Is the Pandemic the Best Time to Invest in Real Estate?

The pandemic is a unique situation that could offer unique real estate opportunities. Think about it. For some time there, you may have asked these questions. When will this pandemic end? When can we go back to our normal lives? Is this the beginning of a world full of restrictions? Surely, those questions are giving you the creeps, perhaps a tingling sensation running up and down your spine. But it shows one thing: chaos. And when there’s chaos, there could be a great opportunity.

For one, reports show that there are an estimated 1.5 million unemployed just between June and August. Being the biggest brunt in all these are young people. Overall, 300,000 aged 16-24 lost their jobs. That’s about 60% of the total in just three months. What’s interesting is the virus is shaping the market as we speak. As people fear the virus, their decisions in their everyday lives reflect that in the equation. And that includes real property decisions.

A Unique Opportunity

From the onset, now that there is money in real estate. People like Grant Cardon definitely made his millions buying real estate. Cordon doesn’t live in a house he owns, but he owns hundreds of real estate. The ex-car salesman flaunts about 6,000 units being rented. His strategy of looking at cash as “trash” and owning real estate is the only true treasure that surely works for him.

So the million-dollar question is: Are you going to do a Grant Cardon and start investing in real estate during the pandemic? To say for sure that you should is not wise. Why? Because each one of us comes from different backgrounds. And each invested is unique to its own.

However, know that there are certain things that could work for you today. In the greater perspective, these opportunities may not come back again. It’s true. The pandemic has hurled us into a once-in-lifetime place. And there may be no better time to get the right real estate property.

The Telltale Signs

If you think of America as one house, then you’d understand that survival is the top priority right now. As people lose their jobs and businesses crumble, putting food on the table is paramount.

That said, home loans are at their lowest now. Meaning, the interest rates are truly friendly. Yup, you heard that right. The pandemic has pummeled interest rates to surprisingly rock-bottom levelsr. That should tell you there is no better time to get a loan and borrow.

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But there’s a catch. You face an uphill climb. Yes, that’s because you’d have to go through a long line to get your much-needed loan. As millions of Americans are out of a job, getting a loan is harder than ever. That’s even if your credit score is pretty high.

The reason for this goes back to the pandemic. As it becomes harder for lenders to understand a consumer’s credit health, the requirements to be granted a loan has tightened. But if you’re bullish and you have money to burn, know that we are in a buyer’s market.

Getting the Right Real Estate

Now, if you really want to invest in properties, know that you’d be facing fierce competition these days. Why? People in pandemic tend to be more tenacious. The times demand results. Who would want to be out there in a sleazy neighborhood which could get you the virus? With thousands of Americans buried due to the pandemic, you really can’t blame them. Getting the right property has become more imperative.

Knowing the story of Laura Galeazzo should bid you well. The 33-year-old fitness coach made her bid for an open house, a four-bedroom colonial-style house that’s complete with AC and a furnace. But she didn’t get it. A 50-something couple literally claimed it. How? The couple stood in that house for sale. ; They warded off other prospective buyers by outbidding them and parking their car in the property so competition couldn’t get in.

Then again, you can use real-life analysis when investing in real estate these days. Human behavior thanks to the virus, can help you choose the right investment.

No less than Aaron Strutt, director at Trinity Financial, disclosed buyer behavior. He expounded that buyers now are wary of condominiums. Those high-rise skyscrapers where you go up in a closed elevator is out of the list for now. Why? People don’t want to be up close with a stranger (who could have the virus).

Villas and the suburbs are in. People are looking at properties with big front loans where you can keep a safe distance from one another. Cities have earned quite a reputation with New York City being a virus hotspot.

Americans favor townhouses now. That additional outdoor space offers quite an escape from the clutches of the virus. Think long-term and do your due diligence. With the right information, you should be in a better position to get the results you want in these trying times.

 

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