Written by: Howell.Natasha
The real estate industry has been one of the worst-hit sectors by COVID-19 with several industry sectors, such as hotels and malls being the worst hit. This has led to a drop in interest rates. Which has led to some people choosing to invest in real estate despite the pandemic. This shows that it is still possible to use the right strategies and get the best investment deals.
Benefits of investing in real estate
Compared to other industries like the stock market, real estate is better because tenants are still expected to pay rent. The coronavirus has also increased the value of homes, which means that people will find ways of paying rent to have a safe place to stay. The government has also stepped in in some cases. Property owners in Section 8 are getting their rent from the government, which means that even if your tenants can’t pay, you can still get your money from other sources.
There’s a chance of the industry doing great in the future, and you’ll be able to increase your rent then even if you can’t do so now. You will have to be patient as you wait for the situation to improve. You can also find various funding property options if you don’t have the full amount to buy the property.
Choose the right real estate sector.
Some of the worst-hit sectors in the industry include warehouses, offices, and retail malls. However, some good options are bound to give you a better return on investments. One of the good options is the traditional rental properties. It may be hard for people to get rent, but they still need places to live, which means that the market for residential properties is still available. The uncertainty that the COVID-19 pandemic has created has made it more difficult for people to make alternative living arrangements. The number of people buying or building their homes has reduced, which is still good news for rental property owners.
Another great sector is Airbnb. Even though the negative effect on the tourism sector has also impacted the Airbnb sector, there is still a good market that can help you get good ROI. For instance, medical personnel in areas with a high number of infected people have had to use alternative living arrangements, mainly Airbnb. Airbnb is safer and more convenient than hotels, which makes investing in them a good idea. Apart from medical personnel, some of the people fleeing from high-risk areas also choose to use Airbnb, given that most hotels are closed.Your first step in investing in real estate amid the coronavirus pandemic is to do some research to find out the least affected sectors to invest in.
Join a real estate network
The pandemic has made it impossible to find real estate opportunities given the stay at home policies and travel prohibitions. The best way to learn of new opportunities is, therefore, through networks. The networks don’t consist solely of real estate professionals but also of homeowners looking to sell their properties. You can also ask your friends and family members since word of mouth is still a viable method of spreading news. They may know someone who wants to sell but doesn’t have access to the networks. Your chances of getting a property at prices below the market value are very high, but you can also work with brokers and agents to get off-market properties.
Work with an agent
If you can’t join a network or don’t get low-value properties, then another option is to hire a real estate agent. It’s their job to know the available properties, but since the pandemic began, their businesses have also suffered. This means that it will be easier for you to find an agent at an affordable rate. Most agents have adapted to using technology that allows virtual viewing of properties, which will give you the added advantage of sampling virtual open houses without putting yourself at risk.
Consider historical facts
Other than affordability, other factors that invest great are population growth and job growth. You need to invest in a property that will continue to grow after the pandemic is over, and previous market trends in the industry can show that. However, it would help if you also were on the lookout for areas that have taken major hit. Some of the areas with the strongest economies still have high property prices, which means that they will most likely recover quickly. Others with weaker economies will find it difficult to bounce back, which means that you should choose areas with diverse, more resilient economies.
Focus more on appreciation
Even though the real state has been declining since the COVID-19 outbreak intensified, but it is still one of the best industries to put your money. While some investors have pulled out of the market, others have opted to diversify their options in a bid to protect their assets. You should, therefore, buy a property because of its potential to appreciate rather than for its positive cash flow. It is still possible to find properties that generate cash flow, given the way people are unable to buy their properties.
Use available tools at your disposal.
There are several online tools you can use from the comfort of your home. Some of those tools are software like “property finder” that use artificial intelligence and predictive analytics to find rental properties for sale. Other online tools are websites like TNT Investment that can help pair buyers and sellers depending on their locations. The site does all the research on behalf of their clients, which means that you’ll easily find an appropriate property to invest in.
TNT Investment Properties is one of the best platforms you can visit if you need any assistance with the right property. The company can help you find properties below replacement costs to protect your rental charges and guide you towards making the smartest investment decisions that will yield long-term benefits. You have to remember that your investment may not give you the returns you desire immediately, which means you should buy properties based on future projections even though they may be a little unpredictable.