The Post-Pandemic Perspective: 5 Tips Potential Property Investors Should Keep In Mind
Real estate markets worldwide are going to be vastly affected by the coronavirus pandemic. Although these changes can’t be avoided, what you can do if you’re a property investor is to be mindful and aware of the upheaval that will likely hit the post-pandemic real estate market.
Nobody is able to fully predict how things are going to pan out, but there are some early signs of what the market will do, and we have gathered these into the tips below.
1. Off-Grid Will Take Off
Whereas survivalist properties that were off-grid or solar-powered may have been a niche that you weren’t willing to venture into before, you may now want to consider that kind of property.
If you know a commercial property manager within this niche now is the time to get in touch with them. Anywhere you can live off-grid and be self-sufficient will likely be more valuable, including land that can be developed.
2. Overlooked Towns & Cities Will Be Prime Real Estate
Major cities have always been high-interest real estate areas. However, in the 2020 pandemic, some of the most popular cities became places no-one wanted to be trapped in. Another pandemic is not out of the question and buyers will be mindful of this, at least in the immediate future.
With this in mind, overlooked towns and cities with lower population density may see a better real estate recovery and so are perhaps prime places to look at for early investors. Areas that allow for physically distant living and the possibility to gain easy access to rural or scenic areas are particularly valuable.
3. Vacation Rentals Are Out For Now
Vacation homes are likely to see an immediate collapse in their value. As it stands cancellations are up 500%. If you’re looking to develop a property for the purpose of selling it on, a vacation rental may not be the place to look.
Tourist traffic has been so badly affected by the pandemic that rental returns are kind of dead. Hopefully, this won’t be forever. If there are some bargains to be had and you want to take a risk then you may want to make a purchase. You are likely to see lower sale prices in these areas. Just don’t expect to flip the property for a profit any time soon.
4. Don’t Buy Without An Inspection
If you’re a highly experienced property investor then you may be able to get away with buying a property without visiting it first. However, if you’re a novice in the property investment game, then it is extremely important that you consider waiting until you can travel to see a property you want to buy. Even with rock bottom prices, now is not the time to be taking big risks with big money.
5. Stay Flexible In Your Thought Process
There are no certainties right now and everything is changing constantly. That means there are some incredible bargains to be had in spaces you might have previously thought were too good to be true. It’s definitely time to revisit those areas of the market.
You should also think outside of the box when it comes to how you interact with sellers and agents. There are all kinds of flexible measures, such as virtual viewings, being put in place to accommodate these uncertain times.
Seek advice, stay informed, and try and leave behind some of the rules and guidelines you usually follow. Just remember that the biggest winners are usually those who take informed risks and who don’t act on impulse, with or without a pandemic.