Is investing in real estate now one of those great investment opportunities that presents itself once a decade?
Over the years if you have invested your capital to buy property when there is an economic crisis, you have made a safe, viable, and long-term investment which is likely to grow once the crisis starts to vanish. Historically, If you have invested correctly the real estate market has proved to be one of the most lucrative investments with great potential for income and capital growth.
Over the years if you have invested your capital to buy property when there is an economic crisis, you have made a safe, viable, and long-term investment which is likely to grow once the crisis starts to vanish. Historically, If you have invested correctly the real estate market has proved to be one of the most lucrative investments with great potential for income and capital growth.
Here are five reasons why it is the best time to invest in real estate
1. Competition from Buyers in the real estate market is low
There is a lot of uncertainty and fear instilled in the mind’s of people looking at buying a property, particularly the inexperienced buyers since the Virus lockdown was introduced. This has resulted in a lesser number of competitors willing to invest in real estate right now which makes the playing field quieter and more negotiable than usual. It may be worthwhile to take this opportunity of less competition and start to invest if you are aware of what you are looking for. This is where an experienced Buyers Agent can really make a difference to ensure you don’t overpay.
There is a lot of uncertainty and fear instilled in the mind’s of people looking at buying a property, particularly the inexperienced buyers since the Virus lockdown was introduced. This has resulted in a lesser number of competitors willing to invest in real estate right now which makes the playing field quieter and more negotiable than usual. It may be worthwhile to take this opportunity of less competition and start to invest if you are aware of what you are looking for. This is where an experienced Buyers Agent can really make a difference to ensure you don’t overpay.
2. Mortgage interest rates have reached the lowest levels in history
Paying off your home loan has never been this cheap. It is suggested by CoreLogic data that many Australian properties’ mortgage repayments would now be lower than the local weekly rentals. This means you get to buy a property with home loans at very cheap mortgage interest rates in a period of uncertainty and this seems to be an excellent opportunity for the investors who do not want to risk losing money buying into a hot and difficult property market. This gives you a golden opportunity to pay less for your property and save more with such low interest rates.
Paying off your home loan has never been this cheap. It is suggested by CoreLogic data that many Australian properties’ mortgage repayments would now be lower than the local weekly rentals. This means you get to buy a property with home loans at very cheap mortgage interest rates in a period of uncertainty and this seems to be an excellent opportunity for the investors who do not want to risk losing money buying into a hot and difficult property market. This gives you a golden opportunity to pay less for your property and save more with such low interest rates.
Home Loans are at all time lows
3. The real estate market is the buyer’s market and the banks are eager for business
Due to the lockdown and virus restrictions, the banks are not generating the normal level of revenue. Not many people are signing up for home loans at the moment and the banks are feeling it. Right now, the major banks are luring people with many marketing incentives to attract solid borrowers and currently paying them around $4,000 for each property loan and similar amounts to refinance other loans.
4. Many owners are reluctant to sell their properties in the current restrictive situation
With the introduction of the Virus lockdown and social distancing rules that came with it, a lot of owners are reluctant to risk selling their property right now. However, there is alway owners that want or need to sell. This is where uncertainty becomes an opportunity. Take advantage of the smaller number of listings as they may be people that really do need to sell in a tough environment.
Due to the lockdown and virus restrictions, the banks are not generating the normal level of revenue. Not many people are signing up for home loans at the moment and the banks are feeling it. Right now, the major banks are luring people with many marketing incentives to attract solid borrowers and currently paying them around $4,000 for each property loan and similar amounts to refinance other loans.
4. Many owners are reluctant to sell their properties in the current restrictive situation
With the introduction of the Virus lockdown and social distancing rules that came with it, a lot of owners are reluctant to risk selling their property right now. However, there is alway owners that want or need to sell. This is where uncertainty becomes an opportunity. Take advantage of the smaller number of listings as they may be people that really do need to sell in a tough environment.
Some sellers can be reluctant to sell due to social distancing risks.
5. The Market often booms after a crisis
After every previous crisis, recession or even depression, the property market generally experiences a strong period. Historically, after the Global Financial Crisis of 2008 or the Great Depression of the 1930s, the global economy was pushed to the edge for a period of time. In the midst of very difficult times , prices slowly started to rise.
This often happens when investors take their money out of unstable share markets and invest it in safer and less volatile assets such as the real estate market. This leads the property market to ultimately experience an unexpected expansion in demand. History suggests this happens almost every time after a crisis in financial markets. During the boom, prices rise then fall and this slowly draws people into understanding that investing in real estate is a good idea during an economic crisis as prices can go down a long way. A patient investor can reap very handsome gains during a post Virus crisis period.
After every previous crisis, recession or even depression, the property market generally experiences a strong period. Historically, after the Global Financial Crisis of 2008 or the Great Depression of the 1930s, the global economy was pushed to the edge for a period of time. In the midst of very difficult times , prices slowly started to rise.
This often happens when investors take their money out of unstable share markets and invest it in safer and less volatile assets such as the real estate market. This leads the property market to ultimately experience an unexpected expansion in demand. History suggests this happens almost every time after a crisis in financial markets. During the boom, prices rise then fall and this slowly draws people into understanding that investing in real estate is a good idea during an economic crisis as prices can go down a long way. A patient investor can reap very handsome gains during a post Virus crisis period.
