Believe it or not, real estate is all the rage for aspiring homeowners these days. While the coronavirus pandemic plunged several countries into deep economic recession, many are taking the opportunity to buy cheaper homes as mortgage rates hit new lows. That is why it is not surprising that homeowners are leaving the urban spaces in exchange for quiet and spacious neighborhoods in the suburbs.
Whether you are working in real estate or property management, you may have noticed the booming U.S. housing market during this pandemic. According to news website Vox, COVID-19 plays a big role in the increasing demand in the housing market. Buyers are taking advantage of the decreasing mortgage rates, making buying homes much cheaper. As mortgage rates are falling steadily, they have reached a record of 2.65% during the first months of 2021.
By now, you might be on the lookout for house and land vacancies that can score you great deals. But if you are not feeling optimistic about buying a property amid a pandemic, we have listed the reasons investing in properties amid a pandemic can make a difference in your finances.
The housing market is currently booming
In a report by the National Association of Realtors, the real estate market has been reaching its highest levels since 2006. Although the economy is not doing well right now, many are still buying and selling homes.
In urban cities where people are trading apartments to family homes, places such as San Francisco are still encountering an increasing demand for properties. But if you are planning to buy a home in densely populated areas or cities, be wary of frequent virus cases. In this case, if you are thinking about purchasing a property in a specific neighborhood, take the time to search about its economic health and avoid making any impulsive decisions.
Low interest rates
Considering the current economic condition, interest rates are likely to maintain lower prices for a while. The central bank of the U.S. is also anticipated to keep low-interest rates at around 0% until 2023. This means you don’t have to feel pressured to buy properties since rates will stay this way for the next few years.
But keep in mind that holding it off also comes with risks. As real statement agencies gain confidence that the U.S. economy will remain stable, it will give plenty of time for investors to plan and prepare. So if you have already set your eyes on some properties but plan to purchase them methodically, there is no reason to put off those plans.
The pandemic will not die down soon
While this may not sound good for everyone, this can be enough reason to push through your house buying plans. In the first few months of the pandemic, people find it reasonable to put off their major purchases and decisions involving money and livelihood. But it may not be wise to hold off plans indefinitely since returning to the old normal is unlikely to happen soon. At some point, you need to find ways to adjust to the current situation.
For business owners, there will be few restrictions when buying a property. For example, if you plan to buy a franchise for escape room entertainment, you might want to put this off for the time being. Since the virus tends to linger in the indoor environment, governments do not permit industries and businesses to offer indoor entertainment services since they are major breeding grounds for virus infection. These include arcades, rock climbing, bowling alleys, driving ranges, and more.
But growing or establishing the right business will help you outlast competitors and come out stronger during this pandemic. Meanwhile, retreating from opportunities and watching your funds shrink will provide fewer options from surviving the pandemic and living the life you want.
Property management is a viable business right now since properties and houses are prime necessities, and everyone needs a shelter to live in. Although it may sound surprising, people are investing money and searching for safe sanctuaries where they can protect their families from any health risks.
While everyone is facing difficulties in this pandemic, it is important to maximize every opportunity that comes your way. If you don’t want to end up rushing to find the perfect house for your family, grab every chance you can get as mortgage rates are at a record low and the demand in the housing market is booming. It will be your chance to find a safer neighborhood without risking your family from acquiring the virus.