Real estate market in times of corona virus
Real estate market in times of COVID-19
What will happen to the real estate market in times of COVID-19?
This unexpected pandemic has reached our lives, homes, cities, companies, businesses, and projects. Threatening us in all aspects, taking some, and forcing us to take measures such as abstaining from social contact, taking refuge in our homes, and forcing us to stop working. We ask ourselves questions like when will this end? What will happen to our businesses? Is our house the best place to spend these times? Is it a good time to invest? How is covid19 affecting the economy and how will it recover? How is covid19 affecting the real estate market? Is it a good time to buy or sell? The last question is what will be answered in this post.
No one is oblivious to the affects of the coronavirus, much less Colombia. Just as the government is trying to mitigate the impact by looking for the best way to manage resources and assets, we should be doing with our homes. What better time than quarantine? As many companies try to reinvent themselves, seek support, are devalued, many other economic sectors lose. As the potential unemployment projects an increase and the stock market has crashed, we wonder who will be interested in buying or selling housing in a time of crisis?
Buy home? It has always been a powerful idea, the best investment! Without a doubt, my person would never tell you otherwise. Possibly: Buying a home is the best investment you can make. Without a doubt, my people would never tell you otherwise. Some individuals question their current home, whether it is appropriate for the current situation as the best shelter during a pandemic. Some will look for a bigger house that can protect their entire family and make these months as comfortable and versatile as possible. It will be a good long-term investment, after all. However, temporary conditions should not affect your long-term plans. If you had contemplated the purchase of a home or property in your cash flow and if you had started with the project to buy a home or invest in real estate, you should not(?) finish it. I encourage you to continue if your situation allows.
Given that the real estate market maintains high projections, its businesses will have more stable prospects than those in other industries. I think I know the powerful mechanism to increase your wealth and it is a good time to buy as it has always been.
The possibility exists, and I'm not saying it. That prices decrease in the short and medium-term.
A very likely devaluation until 2021 or 2022; that is, short or medium term, but it would will stabilize again after these dates. This devaluation is driven by the need for liquidity of many owners who prefer to have cash than assets. Increased supply due to low demand would will decrease prices. Many variables impact the price of new and used housing such as land value, inputs, including the value of capital. So we cannot expect it to decrease as much, it is not the case for speculation. You will certainly find more used alternatives options than new ones.
Concluding and With In conclusion, with much patience, your investment will have a high return. These are great investment alternatives options in the times of covid-19 for people with high economic stability, investors with high liquidity, or people with the decision or with approved credits that do not affect their current situation or your liquidate. For real estate agents, it is a time where clients can postpone the decision or the transaction for at least 6 months.
Finally answering the question. The coronavirus or covid19 crisis will not affect potential investors. Why not? Because I don't want to talk about crisis and why don't I want to compare it with other crises? I don't want to talk about the economic crisis in the United States or the one in 2008. Or the one in World War II, I don't think they are the same, we had not experienced a crisis like the one generated by a pandemic, and not all crises are the same.
Today there are opportunities. They are not the same as in 2008 in the United States or Argentina or the Second World War. What are these opportunities? Owners looking for liquidity, people that prefer money more than assets, investors looking for opportunities. Do you see these opportunities?
Albert Einstein once said, “It is in the crisis that inventiveness, discoveries, and great strategies are born. Whoever overcomes the crisis overcomes himself without being OVERCOME.” He also said, “Let's end at once with the only threatening crisis that is the tragedy of not wanting to fight to overcome yourself."
If you need the advice to reaffirm your investment decision or need advice on where to invest… do not panic, get advice. Consult with us.
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