As the world goes through a difficult time battling COVID-19, some may not have the courage to invest in anything at the moment. While the global market is struggling to recover, the property market remains buoyant. Commercial real estate and development professional Gene Bernshtam shares that the real estate market stays a top investment pick for most of Americans.
Even amidst the COVID-19 pandemic, the past months have seen the median U.S. house price rise to 8% year-on-year, reaching $280,600, which proves to be a favorable report for investors. Due to COVID-19, real estate transactions will be a little sluggish compared to the previous year. However, experts in the field are seeing the market picking up, with new listings increasing. The past few weeks saw a rise in inquiries from prospective buyers.
Buy-to-let properties provide real estate investors a favorable source of passive income through capital growth, rental payments, and price appreciation, notes Gene Bernshtam. Plus, buy-t0-let real estate doubles as an alternative route onto the property for newbies in the industry who are not able to purchase a property in their desired location. In the current climate of the real estate industry, such fundamental attributes stay true.
Gene Bernshtam mentions that places where the labor market experiences little damage provide the most favorable investment opportunities. Individuals who are capable of taking investment opportunities may want to consider purchasing properties in locations where the renter’s market is more stable. It might take a while for the commercial real estate to get back on its feet, especially as it encompasses retail sectors and the hospitality industry, which are among the hard-hit economies.
Young professionals who maintain good financial standing are in great shape to take advantage of motivated sellers and low interest rates. Even without a stable income, those who have been furloughed—maintaining health insurance and word that they will get back to work—can purchase their new homes, saying that budgeting is the key to their achievement, says Gene Bernshtam.
While the pandemic continues to be a threat to all industries, the real estate market is set to bounce right back up from a global crisis, just like how it has over the past decades. The rise in the market and the increase in opportunities prove that investing in real estate properties remains to be a solid and prudent move anyone can make.