Coronavirus has created havoc in every industry. The real estate industry is no exception in this regard, explains John Giorgi. Many experts believe that it is the right time to buy dream properties because of various advantages. The pride of homeownership is one of the reasons why people want to buy their own homes. However, every time is not equally suitable for purchasing the property. However, coronavirus has disrupted every industry. Industrial experts think that it is the right time to buy real estate property.
They believe that underperforming mutual funds and the volatile stock market have raised the need for a stable base class. It can give better returns to the owner. In this scenario, investing or buying a house is a better option. Various surveys conducted reveal that there has been an increase in the number of home buyers during the COVID-19 pandemic.
John Giorgi focuses on the reasons behind investing in property during the pandemic
With the increase in the number of home buyers, there is an increased focus on various aspects related to the same. You must take a detailed look at the following reasons in pertinent details
• Supply-side factors:
The recent past reveals the residential real estate industry’s financial position and economic health shows positive signs. Studies reveal that the market has undergone changes, which need proper evaluation shortly. The seller’s market has now become a buyer’s market. There has been a reduction in home loan rates. According to John Giorgi, the rates are much lower in comparison to 2008 2009. In addition to this, financial institutions and banks are better positioned to lend than in the past. All these factors have resulted in an increase in the number of home buyers during the pandemic.
• Low home loan interest rates:
International authorities have notified that there has been a reduction in the loan rate. It resulted in a decrease in interest rates on home loans. Hence, aspiring home buyers must not let go of these low rates if they lack money. They must understand that the repo related to home loans comes with customer risk. However, you must check your credit scores before applying for the loan. In case you have a good credit score, you may get hold of the loan at much lower rates.
• Government support:
The government has announced fiscal and other related packages, like never before. People understand that the increasing dependency on global funds in the residential sector is limited. It significantly affects the real estate industry. With lower rates of interest on home loans, governing authorities are also providing other incentives to home buyers. Hence, it is the right time to buy the real estate property of your dream.
Keep in mind that real estate is a stable asset and unpredictability, and volatility has not made their way into this sector. It has helped the real estate industry to get hold of the strong asset class. Hence, you can benefit from buying a property during Covid-19.