No one can deny that COVID-19 has had an unprecedented and far-reaching effect on the economy. With unemployment and job uncertainty being a reality for many, it can be tough to find opportunities. However, it’s important to remember that in times of fear and uncertainty, there is always a silver lining. The same applies to real estate investments – whether that involves renovating houses for sale in Carlingford or giving houses to rent.
If you are a home buyer and can’t decide whether to invest or not to invest in real estate under the present conditions, here are a few reasons why real estate investment is the best option in the current situation.
Property Available at Reasonable Prices
A good reason to buy property in the current climate is the availability of housing units at reasonable prices. It is probably the best time for people to buy property because prices are as low as they will get, and some estate agent developers are willing to negotiate further. Moreover, end-users have a wide selection of options to choose from in almost all locations and budget bandwidths. They can buy ready-to-move-in properties at prices which were previously seen only for under-construction projects.
The kinds of offers and deals which homebuyers are getting now are usually seen only during the brief festive period. Owing to the current distress across all sectors of the economy and impending uncertainty of what lies ahead, buying decisions of all non-essentials, especially for the middle class, will be deferred. This will surely affect demand for residential assets, especially in the affordable and midsegments, where affordability is on tight lines.
However, better deals always come in such scenarios. Good projects may not offer direct lucrative discounts. Buyers might get some composite sweetened deals in terms of complimentary car parking, waiver of charges or staggered easy payment plans. This is an ideal buyers’ market, where lucrative deals can be availed and negotiated in the primary market. Moreover, lower interest rates on home loan add to the lucrativeness of the opportunity for houses for sale now as the interest rates are at a level from where it is only going to head northwards.
Lucrative Schemes Are Available in the Market
To shed-off existing inventory, real estate developers are trying their best to attract customers.. They are also driving sales by introducing lucrative payment plans, subvention schemes, and discounts. Many real estate developers are also offering refundable booking amounts, cashback offers and free cancellation, and to buyers who intend to purchase during the lockdown. Therefore, this could be a good time for you to negotiate a deal with your developer/agent.
Possibility of a Price Rise in The Future
Due to the slowdown in the construction sector in the wake of the COVID-19-led lockdown, it can be assumed that no new supply will enter the market for some time. It might take a month or two for the market to revive and the supply to pick up the pace. As demand outweighs supply, the ensuing quarters might witness an upward shift in terms of property prices. This means that if you invest now in houses for sale, you might reap the benefits of appreciation in the near future.
Real Estate a Stable Asset
The volatility and unpredictability of the stock market have not just eroded wealth, but also the confidence of investors. This has also helped real estate gain positive traction as a stable asset class. The luxury market may be hit initially as luxury home buyers typically have a higher stake in the stock market. The number of houses to rent will increase as rental yields are expected to improve with rationalization in prices if aspects such as job security. Moreover, gradual economic revival is assumed to remain favourable.
Therefore, industry experts believe that the above factors should help in improving buyer sentiment, translating into gradual upward movement in sales.
While there are several pros and cons to investing in real estate during the COVID-19 crisis, it is advisable to take the help of a financial consultant and make an informed decision based on your ability to accept liabilities and meet unforeseen contingencies. It would be best if you also kept the timeframe of the investment and the returns from the same in mind since that is one of the key aspects in the home-buying process.
If you are looking for houses on rent in Carlingford and require further guidance, reach out to Harcourts. With our expertise, years of experience, and real estate agents in Carlingford, we can provide you with excellent quality services at an affordable price.