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In one of his most popular novels, A Tale of Two Cities, Mark Twain penned the infamous line, “It was the best of times, it was the worst of times.” This timeless line couldn’t have more relevance than it does in 2020. This year caught us off guard on multiple fronts, especially on the economic and real estate fronts. The US had just emerged from the grips of a recession, and the NYC real estate sector was booming.
But, as we soon found out, 2020 had different plans. Not to fear though–wise real estate investors can still find opportunities to make the most of these trying times.
History has shown us that real estate values have almost always rebounded. Despite this global financial crisis due to the pandemic, there is no reason to believe otherwise. And, with a vaccine on the way, we can be sure market recovery is on the way bringing with it an uptick in property values.
Every sector has been hit hard during this pandemic, lenders and banks included. Besides, due to the reduced economic activity, governments have also stepped up and provided some temporary financial relief in the form of stimulus payments and historically low-interest rates on mortgages.
The plan: stimulate the real estate market by generating more demand. What better time to buy and earn more profit than when the rates are hovering close to 0%?
Besides low-interest rates, banks are also now offering more attractive repayment options that relieve borrowers’ burdens. Banks know many people are facing financial strain due to unemployment and underemployment, which has a direct impact on their ability to pay their home loans. Potential investors can ride the wave of this incentive as well.
The pandemic has put many industries on the fast track to going virtual. Quarantines didn’t stop property sales thanks to many, if not all, NYC real estate properties being visible online. People were able to look at houses as well as initiate offers through the apps on their smartphones and tablets, which was extremely convenient. The move to a digital platform also helps property managers better track the interest in properties.
If you were fortunate enough to be able to work from home during the quarantines, you now also have a chance to earn extra money without leaving home as well. It’s a great time to consider investing any extra money in a property or two, especially since interest rates are at record lows.
Gated and secure communities have increased in popularity and demand. Prior to the COVID crisis, many of these properties were far too expensive to purchase.
Investors are eagerly looking for properties located in a secure and green environment. Ironically, the pandemic has created an opportunity for more investors to take advantage of the downturn in the economy and buy homes that would normally be pricier for less all while charging a higher rent rate.
The pandemic presents a golden opportunity for prospective investors if you look at the big picture. The rate of real estate is lower than average and there are fewer investors in the market. Add to that the fact that banks are now offering loans at record low interest rates with flexible payment terms. What makes a better recipe for investment?