No doubt, the pandemic change the way we live, work and even enjoy! However, some decisions helped us through these tough times,
Investments and savings have always remained a steadfast aid to many of us, who lost our jobs but still managed to survive.
But as the quote goes, ” How many millionaires do you know who have become wealthy by investing in savings account?”
Hence we'll talk about investments today,
mainly about Real Estate investments.
So why should anyone invest during the pandemic?
Cause as Warren Buffet says, ” Be fearful when the markets are greedy and be greedy when the markets are fearful.”
We need to understand that right now, and investments will have a reach far greater in the future. The investments now are definitely the assets of the future.
While investing comes in many forms, from stocks, debt funds, gold, or even investing in startups as the current flex goes by,
there is an asset class that has by far survived and gave greater results to the owners, and that is real estate.
Investing in real estate gives you dual benefits:
One, it gives you returns, and two, the asset itself has a great value. Real Estate, unlike other investment classes, never depreciates!
Even if its market price falls due to various reasons, its value as an asset always remains stable.
Easy financing options, inflation hedging and tax benefits make real estate one of the top choices for people looking to save money in the long run.
The first problem that most people face during a crisis is finding a tenant (renter).
For those who have a property available for rent are given enough time to get tenants before an emergency strikes.
The best way to go about it will be renting out the entire space or at least making sure only half of it is occupied,
this way, you don't have to worry about missing out on cost and maintaining the space.
Since most rental agreements are now extended for more than a year, your tenant would be sure to pay rent during the entire duration of your agreement which lasts till the pandemic ends.
Many people who prefer paying their own bills will move into an empty house or flat in place of staying at hotels!
And if it's yours, it means no worries like price hikes etc., anyway. So an investment made today would give you that much-needed flexibility in future.
But there are some cons to investing in real estate as well that one should keep in mind:
One has to bear expenses like repairing and maintenance costs of the property.
Since people trying to save money don't want to spend much too, it becomes difficult for you to get tenants and make sure they are the ones paying rent.
Second, the returns from real estate aren't as great as other investments that one can choose instead.
So while making an investment in real estate has a high risk attached, but in return gives you something that will last for long.
Besides, real estate is a better investment than stocks because, as compared to stocks, the income from real estate is more stable and does not depend on the state of the economy or the company's profits.
In fact, if you buy property in an area where there is a steady demand for housing, its value tends to increase over time, which means that your investment will grow as well.
But before that,
Make sure you have taken care of the following before deciding to invest in real estate:
1. Decide whether buying an expensive property or investing in a number of low-priced units is going to be more profitable for you.
2. Have a thorough knowledge about real estate market conditions and prices of properties and land in your area,
3. Ensure that the local authorities will not be using any compulsory purchase orders on a site where you are thinking of building new homes or factories etc. (Compulsory purchase is when the government can seize your property)
4. Have detailed plans about what type of housing will be built at this location, including designs, materials used, budget estimates and construction time period so as to ensure minimum
To conclude,
Even though there are some risks attached with investing in real estate, but it still manages to give better returns than most other options available.
So when one thinks about what gets them through the pandemic: money or savings?
One should definitely think about getting into Real Estate investments during this period of crisis because not only does it helps with the regular bills and expenses, but it also acts as insurance.
In this period of crisis, it's best we take all precautions possible and avoid taking risks since the pandemic may become worse.
Hence best would be to invest today and putting the asset somewhere safe so that when times get better, everyone can enjoy their savings!
