Pandemics are scary and even scarier for the financial markets. Stock markets are pummeling around the world, investors are wary of heeding to advice, and forced liquidation is only deepening miserably. While some investors can better hedge and cushion their portfolios, others do not have this luxury. Still, sectors including real estate, communications, and teleconferencing, among others, can be an excellent option to invest in this time as well and even when the natural calamities and pandemics are hampering economic growth rates worldwide.
“Where there is a will, there is a way,” and the old maxim is true forever. Countries, governments, and businesses are finding out ways to keep working while being safe. Working from home, meeting through teleconference, and others are some viable options. The spread of pandemics like coronavirus may further make us all adopt to the latest communication technologies faster. Investing in real estate can be a worthwhile option, as of now. The prices are down to a certain extent, and investors can repay the profits very shortly. Given the nature of the real estate business, it is one of the most reliable investments as properties do not have an expiry date for them.
Real Estate Business Goes On
When older opportunities and jobs die, new employment positions may emerge, and the resultant work environment may turn to be even safer for all. But what will not be constant is the prices of the real estate. In a few months, when economies start to accelerate again, the real estate prices will also increase. Sellers also have a proposition here. Pandemics like coronavirus make people understand the need for their own home (and a safe place to dwell) better.
Reduced Interest Rates
As of now, sellers are selling, and the buyers are buying. While there is some effect on the price, it is not huge. Interest rates of many different banks have reduced, and it is not a surprise. The reduction in lending rate is for encouraging the buyers and borrowers to come forward and keep the economic clock ticking.
While the effect of coronavirus on societies may not be for the long term, the new financial scenario is encouraging for the wise. It is now cheaper to borrow and purchase property at low rates. However, in the future, the prices are bound to increase. Therefore, investing in real estate can bring good gains to both marginal and high-value investors. Those are in the rented houses and shops can use the latest affordability and make the best deals of their lifetimes. However, it is advised that any transaction should follow the health guidelines and advisories, and one should not cross the red line in enthusiasm.