Over the first half of 2020, life, as we know it, has changed. The global pandemic has affected every aspect of the economy, not least the housing market.
The question about is it a good time to buy a house is one that is always there, but with such economic uncertainty, you’d be forgiven for not jumping into property investment with both feet at the moment.
That said, low-interest rates often translate to a buyer’s market.
In this article, in light of current world events, we’ll be asking the question, “is now a good time to invest?”
Real Estate is Generally a Safe Investment
If you examine the historical data, you’ll see that real estate prices always rise. This means that investing in property is usually a safe place to put your money. People are still going to need homes.
While certain areas will rise in popularity and value, there will still always be some demand everywhere else. In addition to this, property values always rise because of inflation. Of course, you will want to buy your property at a low price.
As long as you find real estate that you can afford, that is in a desirable area for rental, will produce a rental income, and is likely to appreciate over time, then it is a viable investment,
Mortgage Rates are Currently Low
Prior to the outbreak of COVID-19, the real estate market was already seeing low-interest rates. Once COVID-19 was labeled a pandemic, the Federal Reserve lowered the interest rate to virtually 0 percent.
While you may not quite see 0 percent mortgages at the moment, you will see a gradual drop in rates over the coming months.
There Fewer Buyers in the Market
Many buyers are hesitant at the moment while they wait to see how things play out. With uncertainty over the economy, this is understandable.
This leaves the market open to investors that are in a position to easily afford to buy right now.
How Should You Proceed in the Face of COVID-19?
While real estate is a sound investment area, there are some considerations that should be applied before buying.
It is essential that you ensure that your income and job security is not affected by COVID-19. The effects of the crisis are still to be fully realized in many sectors. Make sure that your income is not likely to be affected later on down the line.
You will need to ensure that you have the cash to buy the property, or that you can secure a mortgage. You may also have other funds, such as an IRA, that you could free up for investment. You can view more here about how to do that.
Is Now a Good Time to Invest?
So, is now a good time to invest in real estate? The answer is a resounding yes. If you have the means to do so and you’re secure in your income, then the market is in your favor.
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