While the pandemic is creating a number of issues for people around the world, it could present a good opportunity for a savvy investor who wants to take advantage of the real estate market. Of course, just because the pandemic is having an effect on the economy, it also doesn’t automatically translate to savings. Therefore, there are several things that you need to keep in mind as you size up the current market as well as the potential market after the pandemic has passed.
Looking for the Bottom
While traditional real estate investment calls for trying to time the bottom in order to get the best deal, that rule of thumb goes largely out the window during these unusual times. Waiting for a further fall or for an additional boost to the value of your dollar may mean missing out on a great opportunity. Therefore, most experts recommend taking advantage of great deals as soon as you spot them within your market.
Make Use of Technology
If you are an experienced global property investor, you may already be used to taking virtual tours of properties in order to decide whether or not you want to make a purchase. If you are new to virtual tours, you will need to weigh the risks of buying without visiting against the possibility of missing out on a great deal. If you are comfortable with taking a virtual tour, which may be your only option at this time, you can certainly take full advantage of the current situation in order to seriously expand and diversify your portfolio.
If you are dead against closing on a property without stepping inside of it first, you may want to see if you can receive a long reserve time pending a site inspection. To get this, you may need to offer the agent a refundable down payment to reserve the property. Keep in mind, however, that not all sellers will agree to do this, even if it is a reasonable request given the current situation.
Focus on Premium Properties
Even during good times, more common bargain properties will typically remain bargains. Therefore, you should use this time to focus on properties in premium locations as well as the premium properties located in the most sought-after areas. These properties are typically the least affected by hard times and are also the first to recover.
Along these same lines, you should purchase luxury properties whenever you can. Right now, exchange rates are heavily in favor of the one with the money, which presents serious bargains for investors. This means you may be able to purchase some luxury properties that you may otherwise never be able to afford. These properties will also be the first to rebound after the pandemic, leaving you with a great property to have included in your portfolio. By taking advantage of these great prices now, you can bulk-up your portfolio significantly.