
In the middle of the COVID-19 pandemic, the entire world is experiencing economic volatility and uncertainty about what is going to happen even after this virus is behind us. The United States long-term interest rates have fallen to a point that has not been seen in history as the country continues to wait for a point of normalcy again. This pandemic has disrupted business activities all over the world and the in the US. What does this mean for a real estate investor?
A health crisis and international economic unrest is never a good thing, however, the effect it has had on interest rates is a silver lining, for real estate investors, in an otherwise very dark cloud. This is an opportunity for investors to add real estate to their asset in order to make a profit and mitigate risks. (www.aminvali.com).
If you already have investment properties, such as a home, commercial property or multifamily property you can take advantage of the lowered interest rates and refinance. When there is economic instability an investor can have peace of mind by investing in “hard” assets such as property, especially in good real estate markets such as the United States, specifically areas in the US with good housing markets. The crisis is not likely to drop property prices, however, low interest rates make it a buyer’s market.
In the real estate and home construction industry, in recent years supply has had trouble keeping up with the demand, with this crisis we are in materials for building from China have been stalled and the gap between supply and demand will continue.
As an investor, when you plan to sell your property you will have multiple offers at competitive rates. A housing shortage will also keep rental and multifamily properties in high demand. If you aren’t sure which is best for you, buying a home or a multifamily property a realtor or real estate agent can help you find out (www.aminvali.com).