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Buying Property in a COVID Economy: Is It the Right Time?

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Because of the outbreak of the COVID-19 virus, the real estate market is experiencing significant adjustments.  Amidst the crisis, more people are experiencing unemployment or job insecurity, contributing to the massive drop in the real estate market. However, despite the adjustments and dwindling buyers, many homes are still up for sale because, like the great recession, most homeowners did not benefit from government programs.

As a result, many homeowners have lost their houses. This situation includes rental unit owners or investors, forcing them to sell their properties due to their renters’ inability to pay fees. A common misconception about rental property units is that large companies own them. However, many rental units are usually owned by individuals, and if these people do not collect from their tenants, they are forced to remove the tenant and even sell the unit to a bigger company.

The dwindling economy and the adjustments in the real estate market has caused numerous houses to go on sale. Residents are taking advantage of home loans because of this. If you have job stability and a steady income, buying a home is the best choice even in this economy. However, before investing in a home, you still have to consider the following factors to ensure you get your money’s worth.

The Length of Stay in Your New Home

If you plan to stay in your new property for less than five years, look for a home that can become profitable for you, helping you build value over the years. Look towards potential value growth. Ideally, you should get a house in a commercial location to maximize the property’s value over the years.

Do Not Overspend

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Even if you have financial stability and ways of ensuring income flow, you should understand how much you can spend. This factor is crucial because it is not the time to spend beyond your capabilities. The decline in prices is more likely to continue for the foreseeable future, so do not overspend.

Find the Ideal Neighborhood

If you plan on staying in the new house for a while and sell it in the long run, find the ideal neighborhood to maximize profits. Look for a home near a reputable school district, as properties in master-planned communities maintain their value better and rise faster when the real estate market is strong.

Ensure You Have Proper Financing

Even if you are sure that you can afford to buy a house, you still have to consider the maintenance cost of the property. Before investing in the home, ensure your finances can hold up to the maintenance costs and other needs of the property for at least the next several years. Doing this can help you avoid losing money that you cannot afford, especially during this crisis.

Despite the outbreak, many houses are still up for sale in the real estate market. So, if you are looking to invest in a home for profits or buy your dream house, now is the best time to purchase a property.

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