Real estate continues to be a means of creating wealth in the face of a global crisis.
3 min read
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My good friends Paul and Kelsey are known as The Flippin Experts. They are my point of contact for questions about real estate and turning over houses. I went to Paul and Kelsey with a question, "How has the pandemic affected real estate?" and was pleasantly surprised with the tips they gave below.
It is no secret that real estate is being used as a vehicle for wealth creation and job creation across America. Studies show that the real estate industry – including real estate finance, insurance, rental and leasing – added the largest value to gross domestic profit (GDP) in the United States in 2019, adding $ 4.49 trillion to the national
Related: Is Passive Income Really Achievable Through Real Estate?
The Flippin experts predict that real estate will continue to be a portfolio and profit maker for entrepreneurs, contrary to some skeptics who claim that the global pandemic and recent national events could have a negative impact on the real estate industry.
Here are three reasons you should think about investing in real estate:
1. Supply and demand
More than ever, people are realizing the need for a safe place to call home. Home is no longer just where you sleep. The recent pandemic could forever change the way business, schools, shopping, social relationships, and life in general are run! As a result, the living space is now also becoming an office, classroom, restaurant and place of entertainment. As the demand for housing continues to rise, so will prices as inventory levels decline. Due to the low inventory level and increasing demand, real estate investors have the opportunity to sell their properties at the highest price with less competition.
Related: Would you like to start a sideline investing in real estate? Here's how to start with $ 500.
2. Low interest rates
Mortgage rates hit an all-time low in June. So that homeowners can buy the home they crave. This will also help investors by lowering lending rates and personal loan interest rates. This will support the real estate market and benefit both buyers and sellers.
3. Economic uncertainty
There are companies that have closed their doors for social distancing and are now announcing that they will not reopen. The future of companies and careers is questionable. Insecurity and fear cripple, but things won't stand still forever. Many people crave security and as a result they will scramble to liquidate the second home or sell the short term rental property they tried, etc. While everyone else wait, save, and eventually sell, it's the business owners who take the risk Enter, invest and watch your profits grow.
Related: Are you thinking of investing in real estate?
Evictions and foreclosure sales have been put on hold, but once the green light is given a flood of distressed properties will be on sale and will need the perfect cash buyer / investor to buy, renovate and resell them.
The combination of these reasons above creates the perfect time. Invest in real estate now.