Is now really the time to be thinking about another property? Thinking that an upgrade or additional home may be a crazy idea with all that is happening in the economy amid the COVID-19 pandemic? It may make more sense than you think. The current state of the economy has resulted in even lower interest rates and stock volatility making real estate more attractive. Investing in new, or upgrading your current real estate, may make sense for some. What about you?
Supply Going Up and Rates Going Down
According to Dave Ramsey, the supply of properties is going up while rates and demand are going down. When you can consider that dynamic, the value for your money may be greater than it’s ever been.
Real Estate Holds Its Value
In a recession, real estate can be a valuable investment tool. “Real Estate is an interesting asset,” says Mihal Gartenberg, an agent for the New-York based Warburg Realty Partnership. Many times, an investment property can produce stable income flow in down economies for the short term and possibly outperform the S&P 500 (US News) in the long term.
Real Estate Shows a Consistent Return
According to the National Association of Realtors, home values saw an increase of 20% in the 20-year period from 1980 to 2000. In the next 18 years (2000 to 2018), the increase jumped to 40%. That’s an amazing return considering that time period included the attacks of 9/11 in 2001 and the recession of 2008. This shows that real estate investments can produce safe, profitable returns on investment.
So…Is now really the time to think about another property?
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