As the novel coronavirus pandemic pushes property values downward, real estate investors are finding themselves with even greater buying power than the 2008 financial crisis produced. From deep development discounts on new properties, to cheaper prices overall, distressed asset investing and the travel and tourism sector’s inevitable rebound, a variety of factors are at play, presenting incredible opportunities for real estate investors worldwide.
The current climate presents the chance to take advantage of deep development discounts on new properties that are for sale in destinations all over the world, including everywhere from your hometown to the world’s top vacation destinations. Whether you are looking for a brand-new standalone residence in a new neighborhood, would prefer to buy a fully furnished condo, or are in the market for an income-producing vacation home, we are definitely heading into a buyer’s market.
“20 percent of buyers reported actually expediting their home-buying timeline in light of the virus, citing low interest rates and the potential to get a good deal on a home as their main motivation”, wrote Forbes.
Cheaper Prices Overall
The great deals on property that are available all over the world right now don’t end with discounts on new developments, however! This is also an ideal time to find bargain basement prices on a wide variety of existing property for sale, including raw undeveloped land, commercial real estate, multi-family properties, residential homes, condos and income producing vacation home rentals.
“As frantic sellers hunt for buyers, deals are still happening - from first-timers hoping to take advantage of near record-low mortgage rates and soft prices, to all-cash investors buying units in bulk”, wrote the New York Times. “Agents and developers are trying everything from millennial-friendly Instagram tours to deeper discounts and even ‘satisfaction guarantees’”.
Distressed Asset Investing
In addition to cash buyers who are snatching up chunks of property for sale that will soon be worth much more than they just paid for it, there are also a growing number of distressed-asset investors, who are currently moving to invest in hotels, retail properties and mortgage-backed securities. In fact, the Wall Street Journal called this “one of the greatest buying opportunities of the century,” as investors are poised to benefit from declining prices; a move that will likely also help the market rebound in the long run.
Higher ROI After Travel and Tourism Rebound
Speaking of bouncing back, investors who use this opportunity to invest in an income-producing vacation home will also be sitting pretty when the market starts to recover, with hospitality industry experts predicting travel demand will rebound strongly post COVID-19. And when that happens, buyers who purchased income-producing condos and other real estate at excellent prices in top vacation destinations like Mexico’s Riviera Maya will be poised to make record return on investment (ROI).
“COVID-19 won’t change travel demand and consumer’s preferences; it will just accelerate trends forward that were already there”, wrote Bizjournals.com.
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