There is no denying that the recent COVID-19 outbreak has had a big impact on the world of real estate investments. The unprecedented extent of the spread of this coronavirus and its effect has been such that many experts didn’t even dare to predict how the real estate market would fare. Nonetheless, despite this uncertainty surrounding the market, there are savvy investors like Ido Fishman, who know how to find real estate opportunities amidst this pandemic and can guide you to do the same. Before you do that, it is important to understand why real estate investment is a good idea during this pandemic.
There has always been competition between stocks and real estate opportunities for the title of the ‘Best Investment Strategy’. But, once the coronavirus outbreak occurred, the stock market was quick to take a downward turn. In contrast, property prices didn’t experience similar fluctuations.
In fact, in some areas, they remained mostly unchanged. The pandemic has caused a decline in real estate activities because buying and selling real estate is challenging during the COVID-19 pandemic to say the least. However, experts like Ido Fishman have pointed out that real estate investors are not losing anything in regard to the value of their income properties.
The market experts have highlighted that the 2008 recession showed that home prices will drop to a degree, but the real estate market will be able to make a quick recovery once things start going back to normal. This means that there will not be any major impact on long-term appreciation in real estate. Regardless of the temporary economic crisis, real estate investments will continue to generate great long-term returns on investment.
Meanwhile, as the pandemic is reaching its peak, Ido Fishman suggests that this is the best time to purchase a house for investment because the forecast indicates a short-term decline in median property prices. This will be especially true for locations that have been significantly affected by the Coronavirus, such as New York. In other words, you will be able to find good real estate investment opportunities as soon as things start going back to normal and the numbers start declining.
Where to Invest during the Coronavirus
The COVID-19 pandemic has had a very strong impact on the economy and real estate investment can be the ultimate strategy to counter its effects in the long run. The top strategy for real estate investment in times of crisis, such as this one, is in rental properties. Real estate experts like Ido Fishman suggest that long-term rental properties are some of the best real estate opportunities for new as well as experienced investors. No matter what the situation, people still require a place to live.
Very few tenants have chosen to or been forced to leave traditional rental properties where they live. In fact, renters have been given legal protection in most of the housing markets. Evictions have been prevented even if tenants are not able to afford the rent for a couple of months. This is actually good for the landlords as well because they will be able to keep their renters and not have to search for and screen potential tenants during these times of uncertainty.
Similarly, Ido Fishman says that when you invest in long-term rentals, you don’t have to worry about paying any mortgage because some provisions have been made for homeowners in the CARES Act if they are unable to make their mortgage payments in the upcoming months. This means that as an investor, you will not have to worry about foreclosure. As a matter of fact, since many people are delaying purchasing a home in this situation, there could be an increase in demand for rentals. You will have to deal with lower vacancy rates. Likewise, rental rates will not go down in the next few months. To put it simply, traditional rental income will remain strong despite the coronavirus outbreak. Hence, buying long-term rental properties during this time is one of the best real estate investments right now.
Other than rental properties, Ido Fishman suggests that since real estate prices in some locations have gone down, it might be good to invest in Airbnb income properties. Data shows that short-term rental properties have suffered from a negative impact because tourism has gone down. Airbnb occupancy rates have gone down as guests have cancelled their reservations. This has had an impact on the prices of these properties, making them an excellent opportunity.
It is a good idea to buy them right now at a low price and once things get back to normal, the prices will go up once again. This will result in a substantial return in investment and will also open a new income stream once Airbnb occupancy rates climb back up. Even now, experts like Ido Fishman suggest that there are some hidden business opportunities for earning money as an Airbnb host. New segments of Airbnb guests have been created by the COVID-19 pandemic.
These include medical personnel who have been temporarily sent to locations where the number of infected people are high. Lots of these health workers prefer to stay at Airbnb rentals because they offer greater privacy and more security than hotels and they are being offered at discounted rates. Furthermore, some elderly and other vulnerable groups have also chosen to relocate from busy cities to more secluded locations until the pandemic subsides.
There has also been an increase in the number of remote workers moving to vacation home rentals so they can benefit from the safety and quiet offered by these locations. Hence, this can prove to be a very lucrative opportunity for real estate investors. If you are unable to find real estate opportunities on your own, Ido Fishman recommends that you hire a real estate agent. As lots of agents have lost a significant part of their business, they will be more than happy to go the extra mile to help you find a good investment opportunity without exposing you to unnecessary risks.
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