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Buying a property during the COVID-19 pandemic may be a better idea than you think. Above all, if you consider the advantages that you can take advantage of in the negotiation, to make your investment profitable.
Real estate is not only a safe alternative to expand and protect assets. They also represent an excellent opportunity if you need to obtain liquidity in the future.
Whatever your interest, before buying you need to identify the keys to a successful negotiation. Discover the aspects that you should consider if you plan to invest in the current situation.
COVID-19 surprised the world and imposed a new dynamic on everyone's life. And so far, it's hard to predict when the pandemic will end or how far it will go as it evolves.
This new reality, without a doubt, forces us to reevaluate the most important decisions, including the purchase of the real estate. This is to identify opportunities to protect the heritage as much as possible.
Investing in the purchase of a property amid a global pandemic can certainly generate uncertainty. Many people are afraid to put their money into an investment when they don't know if it will compound or lose value.
But there is one element that can give buyers peace of mind right now. And it is that acquiring a property amid COVID-19 is financially more accessible than before the pandemic. How is this possible?
To shield the economy after the appearance of COVID-19, the Banks have reduced the interest rates. This is the lowest level in the market since 2016.
The decision of the Banks has a direct impact on the interest rates offered by banks to contract a mortgage. This represents a unique opportunity if you want to invest in real estate through financing.
The ease of accessing a mortgage loan at this time is a very attractive opportunity. After the arrival of the pandemic, the real estate market highlighted certain trends that you should know about.
With the appearance of COVID-19, many were forced to postpone purchase plans. This is mainly due to job losses and in other cases reduced wages.
The effects of the pandemic on the economy caused some investors to give up their purchase intention. But the coin has two sides and the other party has found a great opportunity to expand the heritage.
Lower demand allows new buyers to negotiate lower amounts for a property. The decline also caused independent builders and sellers to lower prices to adapt and attract more investors.
These, without a doubt, are data to consider if you aspire to invest in a property for a price below the list.
The drop in demand among buyers has not resulted in a lower supply of real estate available in the market. Sellers and lessors have seen in the health emergency, the opportunity to capture the interest of investors.
Owners, real estate agents, and construction companies have done everything possible to maintain their activity and defend their investments.
In the current context, this sector has chosen to improve prices and payment schemes. This allows more people to perceive greater advantages in the purchase or rental they are making.
Another factor that favors a greater supply of real estate has to do with the role of the real estate sector in the economy. And it is that construction has been and continues to be, a fundamental pillar for the growth of the economy.
This, of course, represents an incentive for the government to seek to reactivate the economy through the real estate sector.
Even experts estimate that there will be more actions to stimulate credit demand in the mortgage sector. Everything seems to indicate that the supply of real estate will continue to expand.
The current scenario is an opportunity that you should take advantage of to negotiate in your favor. The first thing is to evaluate your level of financial solvency to know what conditions can be put on the table.
If the property is new, look at the possibility of requesting a discount for unfinished work or missing services in the property.
In second-hand properties, damage can lead to a price reduction. This considering the investment that you must allocate for repairs after buying the property.
On the other hand, you can also negotiate improvements in conditions for payment terms, monthly amounts, down payments, and extra benefits.
Don't be afraid to pass your offer on to the owner or builder. In current market conditions, many are willing to consider rebates and extra benefits to close the deal.
As you could see in the previous point, unfinished work increases the margin to buy with advantages. In pre-sale, many construction companies agree to set a price that is maintained until the moment of delivery.
Real estate market during the COVID-19 pandemic
During pre-sales, real estate agents also allow you to negotiate a reservation base, as well as grant a longer term for the initial fee.
But the offers are not the only benefit for the buyer. When the work is not finished, you have more freedom to customize the design while the construction evolves. In this way, a property according to personal taste is obtained.
Real estate represents a safe alternative to protect assets. The added value offered by the properties means that money remains protected in times of crisis.
COVID-19 has undoubtedly led to changes and uncertainty in all areas. However, the real estate sector is one of those that has maintained stability amid the volatility of the markets.
Buying a property at this time is a wise decision. It is a tangible investment that you can use to generate liquidity in the future, without fear that the asset will suffer devaluation.
