The unprecedented times brought on by the COVID-19 pandemic have led to developments we wouldn’t have thought were possible half a year ago. It has especially affected the real estate industry, dropping interest rates lower than expected.
The pandemic isn’t likely to end anytime soon, even as the world slowly starts to adjust to what can only be described as the “new normal” and resumes certain activities. This brings us to the questions homeowners (new and prospective) have been debating for months: is this a good time to be investing in real estate?
In this blog, we’ll attempt to answer this question and the possibilities it holds.
What the Situation Looks Like Right Now
In an attempt to keep property sales running, several developers are offering and subdued property prices and low interest rates to attract more customers. With some intervention by the government, the real estate market looks more appealing than ever to homebuyers right now, offering mortgage rates that are lower than ever.
Some developers are even offering new payment schemes and incentives to encourage buyers to shoot their shot during the pandemic. From throwing in “freebies” such as free parking or home appliances, to offering unimaginably low prices, they’re doing everything to get more buyers.
And, it’s working.
The low mortgage and interest rates are luring in more buyers who wish to purchase property before prices shoot up again.
Why You Should Invest During the Pandemic
If there’s one thing that the uncertainty surrounding COVID-19 has done, it’s a growing acceptance it has led to for having home-ownership. With rent rates surging through the roof and unemployment rates high, there’s a massive need to have some stability and security for your family. Having a house of your own is a tangible investment that can help give you that safety net. In fact, it’s probably the best investment you can make during this crisis since there are lower risks attached.
Once things begin to change, interest rates are expected to shoot back up and real estate prices will rise once again. For individuals who’ve been saving up to buy a house, this is the ideal opportunity to make the purchase. We don’t know what the next few months—or years—have in store for us, and the lower interest rate trending currently means lower return expectations. Once the market goes through a revival, it’ll be more difficult for you to invest in real estate.
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