Is Real Estate a Good Investment During COVID-19? Let’s Talk About Your Risks And Your Potential Gains
Register Now11.04.20
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Investors
Before stocks, mutual funds, gold, and oil, there was land. Land, aka real estate, has been the most sought-after asset in history and still stays strong. Of course, we are in the middle of a pandemic so the question now is; is Real Estate a good investment during COVID-19?
Like any other income-generating business, real estate investments should be based on objective analysis, understanding of future potential, and efficient asset management. To get the maximum returns out of this asset, you have to manage the risks well. Here is how you can do it and turn your real estate investments into a prized component of your investment portfolio.
Risk of Heavy Debt
You can mitigate this risk in two ways.
- Find Best Property Rate
Real estate investment is a considerable investment that often requires debt. You can reduce the debt load by finding an affordable property today at a great deal but holds the potential to appreciate dramatically in the future. An experienced Real Estate Broker can find you these great off market deals.
- Get the Best Interest Rate
You can also reduce the burden of debt by smartly shopping for debt. Do your due research, connect with multiple banks, or ask your Real Estate Broker for a trusted mortgage professional that can help you find the lowest rates on your property loan.
Risk of Losing Rental Income
If you are shopping for condos in the City of Toronto during this pandemic, you do have the risk of losing rental income. The rental market in the City of Toronto is not like it used to be; lots of inventory and not enough tenants looking for condos currently. This is something you have to factor into your calculations. You must factor in vacancy and less rental income per month but in exchange for these cons, you can find a great deal in Toronto now that you wouldn’t have been able to find in the past.
Potential of Price Recovery & Upswing in The Market
With every downturn in a market there is an upswing. When searching for your next investment, the best investment to make is an investment in a market that is going through a downturn. Now that condo inventory is higher it allows first time buyers and seasoned investors the opportunity to get into a market and leverage the lower prices to their benefit. There may be some risks but with the latest article stating Canada now looking to bring more than 1,200,000 immigrants in the next 3 years, you know that a lot of these people will be looking for a condo or house in Toronto. With more buyers coming into the market from overseas, you can see a potential increase in prices over the next few years.
Real Estate Investments Can Be Your Golden Ticket
Real estate investment is and will remain a good investment for Canadians in the foreseeable future. Historically, Real Estate has shown tremendous growth and has helped many people and families build their wealth in Canada.
If you want to invest in Toronto real estate but don’t know where to find the ‘deals’ or need help getting started in your search, The Zadegan Group should be your trusted brokers.
