If financially speaking you have not been greatly impacted by the events of 2020 then you may very well be in great shape to put your money to work and see a great yield on your investment in the coming year. It is never nice to capitalize on the misfortune of others but as long as you are not exploiting others or causing the misfortune, then you have to accept that this is simply the way that the world works. With this in mind residential investment properties is something which should certainly be on your mind this year, and here is exactly why this is an investment which makes so much sense.
House Price Devaluation
The large majority of experts in real estate expect that the prices of houses will plummet following the pandemic. This usually happens when we see a recession and odds are certainly on that this is what is going to happen in the coming months. The reason for this is that governments are borrowing a great amount of money to help people during this time, and that money has to be paid back. Once the recession begins, the real estate market looks set to fall. This means that you are going to be able to get much more bang for your buck than you can right now.
We have already seen that in big capital cities around the world, many of the younger generation are being priced out of buying a property and in response to this the real estate market has become heavily focused on renting. The idea of an investment property is that you are able to collect rent over a long period of time, and now could be the ideal moment to capture that growing renter market which we are likely to see in the coming months and years.
Not only are lower prices going to be likely, so too is the increased speed of sales. There will be many who simply cannot afford to live where they are anymore and that means that they are going to look at cashing in quickly. Given the increased possibility the there will be less buyers, those who are selling will be happy at any interest which comes their way. This can save you time and money.
Banks love to lend money because they can make profits from the income of repayment, this is something which has slowed down greatly in recent months and they want to get bank to this as quickly as possible. we are going to see some highly favorable rates with regards to bank lending and if you can show that you are a safe investment then you should be able to secure mortgages fast and with great terms. This may give you more spending power than you have with the current amount of capital in your account.
Hold tight and wait for those prices to begin to fall.