Tips on Condo Living and Real Estate Investing

Why Now Could Be a Good Time to Invest in Condominium

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The COVID-19 pandemic might not seem like the best time to invest. In fact, a lot of people may think that this is a time to take whatever money they can find and save it. 

However, a lot of industry experts see the opportunity in real estate investing at this time and are encouraging real estate investors and even first-time homebuyers to start their search for property and invest. 

With this pandemic creating all kinds of headlines like “0 interest”, easier and flexible payment terms and “subject to” investing, opportunists and homebuyers wonder if this is the best time to invest in real estate.

According to experts, here are some factors to consider why now could be a good time to invest in real estate:

  1. Low mortgage rates – Mortgage forecasts for 2020 are all coming to the same conclusion that mortgage interest rates will continue to drop during this time. Lower mortgage rates can save you a lot of money especially when buying rental property.
  2. A lot of motivated sellers and fewer buyers in the market – With this period of uncertainty, a lot of buyers would rather wait to see how things would play out. Buyer interest is decreasing because of the fear of losing their job in this time of crisis. Moreover, this pandemic also shows us that there is still a good supply of properties to choose from and due to the current circumstances, there are a lot of sellers who are motivated to sell their properties at a pretty much lower rate.
  3. Slow growth of home prices – Real estate experts predict that home prices will remain steady due to COVID-19’s impact on home sales and the economy. This means it could be a good time to invest before the prices go up.
  4. Real estate offers stability that the stock market cannot – This crisis has made us see how volatile the stock market can be. Right now, you may probably have realized that diversification in a more stable investment is the best strategy for any portfolio. And real estate investment can offer that stability.

After knowing these factors, you might be encouraged to go for real estate investing. But before taking the leap to invest, you should always keep in mind that it is always a good time to invest in real estate if you can find a deal that you can afford, if the property is in a good rental market, if it will produce positive cash flow and appreciate in value over time. 

You can also run through these questions to find out if now is a good time to invest in real estate for you: Am I really confident in my income stream and have job security even in the face of COVID-19? Do I have the cash to buy an investment property? Do I meet the mortgage loan requirements for approval or have the cash reserves that I can use to invest?

If your answer is yes to all these, then this might be a good time for you to invest in real estate. Go and search for the right property for you!

Try our loan calculator and find your future home!