Throughout this year there have been a number of you who have sent messages in with regards to property investment during the pandemic. I did reply to those direct messages but have remained tight lipped on the site, and I did so for a number of reasons. The first is to say that discussing growing wealth or getting rich whilst the pandemic gripped the world seemed a bad idea. Secondly however the reality is, no matter what people say, very few of us had an idea of what was going on, and uncertainty is something which should never be brought to the table when discussing investments.
What I want to talk about today, and what I am going to be focused on as we bring in 2021, are investment properties. Here is why I would suggest that you do the same.
Taking a Hit
There is no doubt in my mind that real estate prices are going to take hits across the country, perhaps not everywhere and perhaps not by as much as what we saw in 2009, but it will happen. The country still isn’t reopen, people have lost jobs, stimulus hasn’t been in place and the government is continuing to borrow and borrow, and this is before mass investment on a vaccine. All of this in my view will undoubtedly contribute towards the reduction of property prices and that is when anyone with the cash or the funding should look to swoop.
The Cost of Money
Borrowing first of all is something which we are all going to be encouraged to do once this thing blows over, in order to get the economy back on its feet. Something else which we have already seen too, are lower interest rates. This means that money is cheaper than it has ever been and that makes for the perfect way in which so many of us will be able to get ourselves an investment property, or perhaps two.
Whenever we see a large scale selling of homes, which is something that we can expect to see on the horizon, we also see a rise in the number of people looking to rent. Now my theory as to why this will happen in the coming months and years is that people are still very much in limbo, there are highly talented people who have lost jobs, they know that another could be round the corner and so they will not cash in and buy somewhere cheaper, they will use renting as a stop-gap. This of course is the ideal market for those with investment properties and it may be easier to rent than ever before.
Speaking personally, this is where my focus is right now and the only advice which I would offer to anyone who wants to do the same thing in the coming year, is not to close down any avenue, search for the states and the cities where the real estate value drops largest.