REAL ESTATE IN CORONA CRISIS – INVESTING IN REAL ESTATE Amid covid 19

Real Estate in Corona Crisis

WHY INVEST IN REAL ESTATE?

Real estate in Corona Crisis – COVID-19 the pandemic which halted the global economy can impact real estate prices too. Millions of real estate project will be impacted as government lock-down forced billions to stay home. This sector needs physical presence to run the business so work from home is not an option. This sector will face financial crisis, workforce and demand.

If the real estate prices are falling in your area it is tempting to buy, but you may see more depth in price when the global economy is hit hard. There is no doubt we are have entered in the recession which was never witnessed in history. The real estate companies project has been stalled for more than 2 weeks now amid lockdown.

These real estate companies may face fund shortage due to low demand in this sector for the coming years. But no matter how hard this sector gets a hit it will bounce back. So you should see this as an opportunity and enter at right time. Well, there no exact right time to figure out when to invest. Only after the economy is back on track will make us sure of entering this market.

How unemployment will trigger real estate price?

Real Estate in Corona Virus

Nearly every industry is negatively impacted by the Corona Virus, businesses with no cash flow started laying-off the employees.

According to Forbes article, Air Canada, Avis Car Rental and Norwegian Air had laid-off more than 50 % of current crew members. Film Studio 20th century Fox dismissed 120 employees of Los Angeles. Trump Organisation laid off 1,500 employees from president trumps hotel.

Majority of American hold three types of debt Mortgage, Personal debt, Student loan and Credit Card debt. 

Mortgage debt stands about seven times larger than student loan debt, and about 10 times greater than credit card debt in the United States.

An average American 2 out of 3 has the mortgage loan. If the unemployment numbers start to increase there will be possibility that more individual will default the payment and there will be decrease in demand. There will be less buyers and more sellers. People will sell the property due to emergency situation which will then lead to sharp drop in real estate price.

Unemployment skyrockets

Should I Sell my property as there will be sharp fall?

Real Estate in Corona Crisis

Well selling the property at this point of time is bad idea if you do not have extreme emergency. We are looking for people like you who will panic and sell the investment. So do not sell unless there is dire need money.

All the project of real estate companies is halted resulting in low demand and inventory. If these real estate companies fail to sell the units it will result in default of loan payment to bank and financial institution. So they will sell the units at the lowest possible rates which will help them survive this from economic crisis.

WHAT TO BUY? PROPERTY OR REAL ESTATE STOCK?

If you have low budget investment than stock market is the best option to invest. But you have to be while investing in the real estate stock. Companies may suffer for long term if economy is badly hit. So you need analyse every stock before investing. Because some real estate companies may survive this crisis some may not.

Stock market had it’s worst crash since 1987 amid corona virus. Real Estate in corona virus crisis may suffer for long term but is will bounce back for sure. So you can create an SIP for investing in real estate stock when this pandemic is over and if there is a hint of bounce of economy. This is the opportunity to make fortune, do not miss it.

But if you are planning to invest in property then make sure you have sufficient funds available. Or you can avail home loan for that matter. Positive side is that interest rates of home loan is dropping rapidly. You may avail this facility to invest in property and make sure you have sufficient funds available to repay it smoothly. 

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