The best time for buying a rental property or investing in real estate is really dependent on the economy. With the COVID-19 pandemic, the economy is sure to wobble. When the stocks drop and it seems as though the economy is going downhill, many people assume the same thing is happening in real estate, however, this is not always the case. In fact, during times of economic uncertainty may be the best time to buy real estate because it’s more secure than the stock market. People need a place to live even during a recession. Before you decide to invest in real estate during this time, consider the following factors.
Prime homes both for buyers and sellers are homes that are located within a strong real estate market. To understand the market, look for areas with a high job and population growth along with affordability. With COVID-19 forcing some jobs to put themselves on hold, some real estate markets don’t have jobs to strengthen them. If you want to invest in a property, look somewhere with jobs that aren’t as affected by a dipping economy—like technology, military, healthcare, biotech, and higher education. These industries are likely to stay resilient even once the dust settles from the effects of COVID-19.
Cities and states with weak economies are more likely to have a tougher time recovering from COVID-19. As a result, these probably aren’t places you want to invest in. If a city that you know has a strong economy, like Chicago or New York, is being hit pretty hard, it may still be worth investing in because they generally have strong economies. However, those two examples are still quite expensive, so you might try finding a similar situation in a city that is more affordable. Research what cities and areas where excelling in economic growth before COVID-19, as those communities are the most likely to bounce back quickly.
COVID-19 put many things on hold, including selling houses. As the situation became bleaker and people realized they’d need to stay home, they decided to take them off the market. While there are fewer properties available for sale, there is also less competition. People who had been searching for an investment property may have stopped due to a sudden lack of income, or they may have stopped to ensure their safety. No matter the reason, fewer people are looking for a home to buy, which means it’s the opportune time for you to invest. However, it’s still essential that you find a place in the best possible market as fewer people have chosen to relocate due to COVID-19. Having a rental property in the best area will influence people to move.
Investing in real estate is a great way to protect and grow your assets. Buying property right now may be the best option due to low-interest rates and an influx of renters. Consult the real estate market and a Rooftop Rentals property management company to find an investment property that works for you.