The COVID-19 pandemic has brought a lot of changes. During these uncertain times, we see big corporations filing for bankruptcy and that’s not enough, more and more people are losing their jobs. And so, it’s quite normal to wonder, if ‘now’ is the perfect time to start investing in real estate.
With economic uncertainty still looming, potential real estate investors are still confused about what they should do. Current low-rate mortgages aren’t entirely beneficial for buyers. Yeah sure, low-rates can make property affordable at first, but in the long run, sellers have the power to increase their asking price.
That’s just one of the things you should consider before investing in real estate.
Check Your Financial Situation
Thinking about investing in real estate? Then the first thing to consider is your ability to make payments. Investments are like commitments–it requires follow-through. So, if you’re owning to occupy, then you should be prepared to make monthly payments.
Given the uncertainties, it’s best to invest in real estate areas you’re familiar with. That way, your exposure, and experience will contribute to how you would want your investment to go.
If you have job security then it’s definitely a good time to invest. The Covid-19 pandemic has taught real estate investors to become more conservative in how they use leverage and instead stock up on cash reserves. By doing so, they have the ability to weather out any issues that may arise.
One of the real estate trends happening right now is the low mortgage interest rates. For sellers, if such a trend continues to happen then more buyers would be motivated to invest. However, if the interest starts to increase later on, then maybe you should consider putting your property in the market a little bit longer.
As for buyers, investing in real estate right now is a good opportunity. But you should do the smart thing and still go for the conventional 15-year-fixed-rate mortgage. This will help you avoid paying extra interest and fees.
Lastly, whether you’re investing to own a property or to have a passive income, it’s essential that you set your investment goals. This will help you assess your risks and understand the available options.
Real Estate investing calls for tedious decision-making. Aside from the budget, you would also have to consider property opportunities in the near future. However, all of these can easily be solved once you have an idea of what the investment purpose is.
Ultimately, no one can predict the future. And certainly, no one can dictate to you when to invest in real estate. Only you can decide on the right time to invest in the property you’ve kept your eye on.
It’s true, it’s not going to be easy, as real estate transactions can take months but with the right agent or company the process can become smooth. MTLOA is here to help and to provide our clients with their dream properties. For more information, you can check out our website at mtloa.com.