There has been no question asked more frequently than this one during these uncertain times. No matter if people are in support of a longer lockdown or want it ended now, the question still remains, “What will the economic fall out be in relation to real estate.”I am going to give 5 reasons I think you should buy now – even in the midst of a pandemic. As someone who invests heavily in real estate, I can speak certainly that this is a great time to buy! Also, I am currently investing in real estate – as I write this. So this isn’t me telling you what you should do with your money while I’m not willing to do that same thing.
5 Reasons to Buy NOW!
(1) The Shortage Of Homes
We are still experiencing a massive shortage of homes in relationship to the number of buyers we currently have. According to Freddie Mac (one of the largest lenders in the world), we are experiencing a shortage of homes in the neighborhood (no pun intended) of 3.3 million homes. So what does this mean for you and me? You’ve most likely heard of the term “supply and demand”. When the demand runs ahead of supply prices go up. This is exactly why we’ve seen so much appreciation in the US over the last 5 years. We need more homes. Because of this massive shortage, it is still a great time to secure as many good deals as you can, seeing that the need for housing is so high. While no real estate investor has a crystal ball (me included), I don’t think we are going to see the massive dip in the real estate market that people think we are. Many investors are likening this to the 2008-2009 crash. There is a MAJOR difference in the decline we’re seeing now and the crash we experienced in 2008. In 2008 real estate caused the crash, today real estate is a result of the crash.No matter what type of real estate you’re interested in – you can do it safely during the pandemic. If you are doing a higher risk of investing like flipping – you simply need to take precautions and look for bigger spreads.
You can watch my video “How to Flip During the Pandemic” HERE!
2. How Much Equity People have
Again in 2008, the reason so many people lost their homes is that people were WAY overextended in their debt to income ratio. Due to the banks tightening down on lending requirements since then according to hloomherg.cnm this has resulted in 37% of homes in America being own free and clear. Foreclosures happen when the equity gap is low and the leverage is high; meaning they owe more on the property than it’ worth.