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
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
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
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
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.