People proceed with great care and caution when investing in property. During a worldwide health crisis, such as the novel coronavirus outbreak, people explore alternative ways to invest and take additional steps to ensure the security of their investment. For those who are new to using online tools to invest, the process may feel long and laborious. For those who are ready to see this as an opportunity to invest, you may be seeing deals that may never come again.
In an original article first published in lamudi.com.ph, industry experts advise on pursuing real estate investments in the time of COVID-10.
Here are some of the good things you can experience when you do invest in real estate, despite the COVID-19 threat:
You Have Plenty of Options
Lamudi saw an increase in the number of new listings recently. This could be due to the fact that brokers are maximizing online platforms to make their products visible even while on lockdown. Ultimately, this means you have a lot of choices that can match your needs and wants, depending on your reason for the purchase. For future homeowners, you can find more houses and lots in your budget range. For investors, you may stumble upon a good property located in an in-demand central business district.
Take advantage of online real estate marketplaces to explore the abundant property market. Use the filter options to narrow down your search. Bookmark those that you deemed worth investing in.
You Can Negotiate Better Prices
People need to reallocate their finances during a crisis, let alone a pandemic. The money they have is allocated for the worst-case scenario, so to speak: grocery goods to prepare for total lockdowns, payment for utility bills, and medical care in the event that they get sick.
This also means one thing: money usually spent on fun and expensive nights out with friends are free, and with this added to your savings, you can explore more real estate options. Talk to a broker about a property you’re interested in now, so you can start negotiating a better position in terms of pricing before someone else takes the property you want.
This is true especially for pre-selling and secondary projects, as mentioned by Colliers Philippines in this report. Sellers will be more likely to be flexible in terms of pricing and/or payment terms for these kinds of property during this time.
You Can Diversify Your Portfolio
With plenty of options in the market and better pricing at your side, you can very well flex diversification. Remember, you don’t want to put all your eggs in one basket. You need to minimize investment risks. Include different types of real estate products in your portfolio.
Explore commercial or industrial properties, for instance. The former has performed well in the last years as the business process outsourcing industry needed more office spaces. The latter likewise experienced strong demand because of the rise of e-commerce, which entailed occupying more warehouses.
Aside from asset class, you can diversify based on location. The southern provinces at the tip of Metro Manila can be a viable option, as infrastructure developments there can boost economic growth. Take a look at the property market performance of other cities in key regions, too, to find more opportunities.
You Can Maximize Your Agent’s Expertise
Fear stems from the uncertainty brought on by a crisis. But you’re not totally in the dark during this time. Brokers are there to help you along, which not only means giving you the best deals in the market, but also offering you all the advice you need in navigating this ‘tricky’ investment.
You may even stumble upon a broker who had a direct, first-hand experience of catering to investors buying during times of crisis. Many real estate professionals can help you be prudent and confident in your investment.
The novel coronavirus continues to rage on. Smart investors, who understand the risks and rewards, look at their options with care and caution. In a time like this, be wise in how you tackle your investments.