Right now, the housing market is still relatively hot. That’s considering that the past year has been anything but steady and stable economy-wise. The market is being driven by two factors: a shortage of available housing inventory and low mortgage rates. If you’re looking for an investment opportunity, fix your eyes on the real estate market because it’s either going downhill or uphill.
The truth is that since the pandemic was announced in March 2020, there has been a decline in mortgage rates. This further dipped this start of 2021. Experts predict that rates will reach their lowest in the first quarter of this year. What this means for the market is that more people can afford to buy homes right now.
But is that really the case? Millions of people lost their jobs because of the pandemic. Many are struggling to make ends meet. They couldn’t even pay their mortgages. That might make beginners think twice about investing in real estate. The sorry state of the economy and the upheaval the pandemic caused people’s lives are not encouraging. But then again, this might be the last time you will see the mortgage rates this low. If you don’t take advantage of this (only if you can afford the repayments), then you’re passing off a great opportunity.
Working in the Real Property Development Industry
Even if you don’t necessarily want to invest in properties right now, you can still find a way to get a slice of the pie. How about managing properties? Look at how much a property management franchise will cost. That might be a more realistic option for you under the strenuous circumstances of the pandemic.
With a property management franchise, all you need to do is manage some clients’ properties from the comforts of your own home. All you need is a laptop and an internet connection, and you are good to go. You can work anywhere you want. You can even take a vacation while you’re managing properties. The pay is pretty good, too, because you can recuperate your investment in under two years (with your clients’ help, of course).
Aside from managing properties, you can also start selling houses. As a real estate agent, you get a commission for every successful sale of a property. With the pandemic still a real threat, agents are mostly doing virtual tours of the properties and transacting with clients online, too.
Investing in Rental Properties
What if you already have a house, but you want to invest in another one for the future? You want to retire comfortably. You’re trying to decide which kind of investment works best for you and the lifestyle you want in the future. You can never go wrong with rental properties. Take advantage of the fact that people do not have a lot of money to buy homes right now. All they can afford for now is to rent a house.
If you are in a financial position to buy a rental property, this is the best time to do it. Aside from the low mortgage rate, a lot of people are also looking for homes to rent. You can go for a single detached or a duplex. That depends on how much you are willing to shell out monthly for the mortgage.
However, remember that if you go into rental properties, that doesn’t save you from the impact of the pandemic. Landlords cannot just throw tenants into the streets when they cannot pay the rent. There is a law against that. If you want an immediate return on investment, rental properties are not the best place for your money now. The market (of tenants) is still in a sensitive position because of the virus.
Buying Your First Home
True enough, for those who are still securely employed right now, investing in your first home is a must right now. Although buyer confidence is still on the low, you can take advantage of the low mortgage rates that will make it easier for you to pay off the loans in the future. You can also choose a shorter term for the loan so the property will be yours in no time.
In investing, time is of the essence. If you miss out on the opportunity to get your hands on a good loan rate right now, you might never have this chance again. But at the same time, you have to be sure that your finances are stable enough for you to dive into property-buying.
There are still a lot of things that need to be done to instill confidence in the markets once more. That doesn’t mean that you should forget about your long-term goals of retiring in style. Those are still your goals, but it just became harder to reach them. Now, you have to work harder, be a little bit smarter in reading the markets, and strike while the iron is hot.