The coronavirus pandemic has wreaked havoc on the world economy. Before the disease took hold, economists had warned that the housing market in the US was starved for supply due to slow home building activity during the financial crisis. The number of homes for sale were not meeting demand as construction activities slowed down in the wake of the crisis.
However, evidence shows that this has done nothing to deter buyers from returning especially in states where self isolation orders have been loosened. One of the main reasons for the stability of the real estate industry during the pandemic is housing being considered as an essential business.
In other words, several construction organizations were allowed to resume construction to ensure a steady supply of new properties. As such, residential real estate is being seen as a safe haven for both property investors and buyers.
Why You Should Go Ahead and Purchase Investment Property
The market remains surprisingly stable and robust, but the future of the market will depend on area. Plus, while there are a lot of unknown factors at play (such as potential future rates which will manifest with time and changing market trends which the pandemic triggers), investing in real estate is never a bad decision.
So if you can find options that you can afford, belongs to a robust rental market, offers a productive and consistent cash flow and which can increase in value over time, purchasing investment property is a good idea. While this advice may not apply during these uncertain times, it can prove invaluable for investors who:
- Are confident in their income stream and do not face job insecurity in the face of the pandemic.
- Possess cash reserves that you can use to purchase investment property or enough to meet mortgage requirements (this includes a steady source of income, good credit and debt that is not more than your income can pay off in a set period of time).
One of the main reasons why most people prefer to invest in property versus assets is because of its resilience. The only thing that really affects prices is supply and demand. Since supply is low at the moment, investments can be a bit costly at the time, but nothing that won’t end up paying for itself in the long term.
If you are searching for a property manager in Columbia SC who can guide you on which properties you should invest in and takes tenant needs seriously choose Patton Properties Inc. We have represented more than 300 property owners over the years and offer informed solutions that can fit your needs as an investor. Get in touch with us today!