Covid-19 has ambushed economies all over the world and many industries have been left in an unpredictable state, including the real estate market. Here are several things to know before investing in real estate in the current economy.
Compared to other industries, real estate is a relatively safe and reliable investment. While the pandemic has created a sense of instability, residential real estate continues to function in a relatively normal manner. In the worst case scenario that the value of the invested property depreciates, there is still the physical asset.
When investing in a property, whether that be to renovate and sell, or to rent out, choosing a location with sustainable demand is essential in order to make a reasonable return on your investment. With the financial uncertainty that comes with a pandemic of this scale, people are looking for the best possible value for money and they want to be sure that if they are taking a substantial financial risk, it will fulfill all of their needs. Consider who you are wanting to target and what they will be looking for before making the final purchase decision. For instance, a vacation home rental should have its own pool, community amenities, and be close to restaurants and entertainment venues.
Prepare for larger upfront costs when financing an investment property. Much research should be done prior to selecting a property to compare down payments and closing costs that may be required before a loan approval can be issued.
There is much to consider when purchasing an investment property, but right now residential real estate is the safest investment in the industry. Our agents at Whippet Properties of Florida are experts in the vacation home market and can guide you every step of the way. Tell us what you want and we will find it at no cost to you!