In the wake of this global pandemic, you might be wondering how this would affect your real estate investments, depending on where you are in your investment journey this pandemic would have different effects on you and I assure you that there is no cause for alarm.

In every economy, a change whether positive or negative always comes with a chain reaction and it’s no different for the property industry, In past weeks we have begun to see shares drop in major industries and a sudden spike in industries centred around essential commodities and in the digital space.
With the gradual halt of economic activities, it’s no denying that many businesses would experience reduced revenue, loss of profits or increased operating costs because of the present pandemic and this directly impacts the flow of money in the economy and people’s disposable income.
What this means is that Property owners who currently have tenants paying a rental on their properties may experience a delay in getting rents this year and it might worsen if the Coronavirus pandemic prolongs, If you are dependent on this income for important things it would be advisable to have an alternative plan.
If you are invested in the purchase of lands with the hope to sell when they appreciate in value I would advise that you review the term of your investment:
For instance if you planned to hold the property for two years before you liquidate, you should consider increasing the time frame, The property market is always a reflection of the economy and would take a slow process to grow before it returns to what it was before the pandemic.
If you are considering going into the construction of property I would strongly encourage that you go ahead with your plans though it might cost you more because of the increase in the dollar and from imported construction materials a simple way of balancing this out is by looking for creative ways to reduce the cost while maintaining construction standards.
And if you’re looking to invest in construction companies by offering them loans I believe there is a lot of opportunity in this area, One major challenge property companies would face is access to funds and high-interest rates from commercial banks stemming from perceived economic risks, It’s a great opportunity for individuals who don’t have large capital base to invest in construction companies who crowdfund for their projects.
In conclusion over the years, the real estate industry has always been a great way of preserving value depending on the economy, rental income from real estate might begin to drag but over time it begins to pick up.
Till my next Email remember to stay safe and do all that you can to protect your life and the lives of your loved ones.
True wealth is good health.

Your Realtor Confidence Iwuoha.

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Hello. My name is Confidence Iwuoha, did you enjoy my blog? If you did don't forget to join my mailing list so you get notified when I publish more content. See you in my next post.

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