The onslaught of the COVID-19 pandemic has undeniably altered the day-to-day living patterns of people. The health crisis has also led us to re-examine financial decision-making. Undoubtedly, our finances have been tremendously impacted by the presence of the pandemic. Despite the pandemic just lurking around, it is imprudent to set our real estate investments aside. Thus, it is essential to consult with your Real Estate Trainer with regards to real estate investments.
In this article, we shall enlighten you by providing several reasons for investing in real estate despite the COVID-19 pandemic.
Ample Time For Research
Investing in real estate, more often than not, might require a significant sum of money. As such, it is vital to conduct extensive research before purchasing properties. It is also beneficial to contact your trusted real estate agents and seek out a piece of advice or two since there are a plethora of factors you have to consider when making real estate investments.
Lowered Prices
The pandemic has posted challenges in your income. To get as many investors as possible, real estate developers are lowering the selling prices of various real estate properties. With this move, developers aim to attract your attention as an investor despite the COVID-19 pandemic’s impact on your budget.
Furthermore, with COVID-19 wreaking havoc in countries’ economies, banks are now financing real estate investments at lower interest rates to prevent further economic inactivity and growing inflation rates. As such, this is high time to make tangible investments in real estate properties.
Adjustable Payment Agreements
With real estate investments during the pandemic, you may enjoy certain privileges such as cashback offers, significantly cut reservation fees, and even cancellations with no fees. Real estate developers aim to persuade investors by offering them flexible payment schemes.
Source Of Long-Term Passive Income
Investing in real estate can help you get funds with little to no effort. When you invest in townhouses, apartments, and other residential properties, you may opt to have them rented and just wait for the rental payments. With this, you earn even though you are just sitting comfortably on your couch.
Strong Market Value
Investing in real estate properties will spare you from seeing your asset’s values depreciate over time. The rising demand for real estate properties as shelters, be it for long-term or transient, assure you that your properties’ values will either stay still or rise. You may purchase a property for $100,000 and sell them in the market for $300,000 when the time comes.
Secured Tangible Asset
When you invest in bonds and stocks, the presence of risks lurk from all sides; many factors can negatively impact your investments. However, since real estate properties are tangible assets, you can enjoy security through revenue streams and capital appreciation. When you hold on to your real estate property, you can also enjoy gaining equities.
Tax Benefits
You can enjoy tax deductions on property taxes, insurances, mortgage interest, cash flow from investment properties, operating expenses and costs, and other perks with real estate investments.
Diversification Of Investment Portfolio
When you consult financial planners or advisers, you will hardly miss the word “diversification” or “diversifying.” They always emphasise the importance of spreading out the risks by venturing into varying investments. Since real estate properties are tangible assets, they can trim down the risk of loss in your portfolio. This is especially true if you consult an expert in Business Finance, where diversifying your business investments is an effective way to hedge capital against loss, whilst also increasing your chances to make profit and grow the businesses available asset pool. Investing in large office buildings protects the business funds from inflationary pressure, at the same time these premises can be used by employees or rented out to other businesses to generate long term profit.
High-Value Investment
Homes are significantly priced since they are tangible assets. Your vehicles’ prices can go lower in time; your stocks and bonds might crash to zero. However, real estate properties’ prices only go up and beyond.
Safety Net
When you know that you have a tangible asset, it gives you a sense of security, which can afford you specific losses in your investment portfolio. It gives you confidence knowing that your tangible asset’s market value goes up as time flies.
Conclusion
It is ideal to purchase real estate properties during the pandemic and even during non-pandemic times with all the reasons mentioned above. Investing in real estate means substantially investing in your financial security and peace of mind. We hope that our article has shed some light on the grey areas of real estate investments.
