The appearance and spread of the COVID-19 pandemic have been a deep shock for all of us – individuals, families, schools, universities, small businesses, and successful companies.
Suddenly the world that we know almost stopped existing, and we all need to adjust to the new reality now. What’s more, this crisis is not only about the dangerous disease, but it also concerns ordinary people who got out of work, lost their income sources, or cannot work due to the government’s pandemic rules. Therefore, it’s normal then people search for a possible source of money and want to prevent themselves financially for the future. In this time of uncertainty, though, sometimes it’s difficult to predict anything, for example, the currency prices. One of the options to consider is investing in real estate. Is it profitable, and if so, does it have any disadvantages? We’ll take a look at it in the paragraphs below!
What is real estate investment, and how does it work?
Real estate investment concerns all the actions connected with buying, selling, managing, and renting a property in order to make a profit. Although it may be risky and costly at the beginning, investing in property is one of the ways of ensuring regular income in the future, for example, from the tenants. Depending on the property type, they can either be individuals or families or companies and businesses. In general, investing in real estate is an excellent option to have regular income without great effort, as the estate market is continuously developing regardless of the general global situation.
If you are interested in the real estate investment issues and want to find some reliable guidelines to follow, have a look at the website of The Pattisall Group – Hilton Head Real Estate. It’s a useful tool that might help to find the perfect property located in the US.
What are the disadvantages of real estate investment?
Of course, every action that’s connected with money has not only benefits, but it also involves certain risks. When it comes to buying and renting a property, there’s always a possibility of the lack of tenants, which usually means a lack of income and loss of money. Even if it’s not the case, the tenants may fall behind with the payment or try to negotiate the price. When selling property, the prices on the market may also fall, especially in the time of crisis, so it’s good to do some research on the topic beforehand. However, housing is always in high demand, so there’s no need to worry in advance.
Real estate investment vs. COVID-19
You may wonder if investing in property is a good way to maintain liquidity during the pandemic. Despite all the risks involved are even more probable, as tenants may lose their sources of income or simply move out, the market research shows that there are no significant changes in the real estate investment area. Specialists claim that the pandemic may influence the property prices in the long run, but the demand for houses will always stay on the same stable level.
Commercial real estate in the times of pandemic
When it comes to investing in commercial real estate, it seems that the prices are also relatively stable. However, some sectors of the commercial business are affected by the crisis – for example leisure and accommodation areas, which have lost a significant part of the income because of the lockdown policy. On the other hand, there are still some fields which are in high demand for the renting area, such as shop magazines or delivery companies. Therefore, it’s still relatively safe to invest in this kind of property, especially in big cities.
How do property sales work now?
Many investors feel confused about the current situation in the context of property selling or renting. They may fear the possibility of the virus spread as a result of direct contact with potential buyers or tenants. Apparently, this practice is still functioning quite well. There are many ways to overcome the difficulties, for example, online home tours. They allow seeing the whole apartment or house without actually visiting it. It’s available through the online tools and provides a professional effect. Another idea is to use all the necessary sanitary protection and follow the disinfection procedures carefully during the tour.
Although it seems that the global situation has recently changed dramatically, and nothing stays the same, the property investment market still remains relatively stable. No matter if you’re interested in property selling, buying, or renting it, you can stay safe and go ahead with your investment plans. However, it’s good to keep in mind that the circumstances may change soon, as nobody knows how the pandemic is going to evolve. Nevertheless, if you keep in mind the possible disadvantages and the possibility of partial profit loss, you can safely invest in real estate now. Remember that all the things connected with finance and investing always involve certain risks, so the pandemic is not that much of an unusual obstacle. Just keep it reasonable and safe!
