If you’re like many investors, you’re wondering whether real estate investing is still a good idea post-COVID. This guide explains.
Is Real Estate Investing Still a Good Idea Post-COVID?
According to the vast majority of experts, real estate investing is still a good idea – even in light of the recent coronavirus pandemic. Though COVID-19 seriously impacted real estate investments, and many investors had to change their strategies, this field is still pretty solid.
What COVID-19 Did to the Rental Market
A lot of people lost their jobs during the pandemic, and that put investors in a tough spot. When tenants can’t afford to pay rent, investors lose; in many cases, investors depend on tenant payments to cover mortgages. But even in light of that, because we are working through the pandemic and continuing to move forward, a lot of the pressure has subsided. The economy is perking back up, and many people are looking for new places to rent – particularly those who have to work from home and have recently discovered that their current spaces just don’t work well with their employment situations.
Related: What is California Prop 19?
How Did Multifamily Properties Perform During the Pandemic?
There are a few ways to look at performance and make projections about the future. One way (the optimistic way, if we’re being honest) is to look at the type of cushion multi-unit properties provide. If one tenant can’t pay rent, but five others can, you have more of a cushion against economic uncertainty. Most real estate investment experts agree, and the facts bear out: despite eviction moratoriums and job losses, multifamily properties continued to bring in income for their owners, even in the darkest days of the pandemic.
Is Commercial Real Estate Recovering?
All signs point to yes when you look at the data on recovery four commercial real estate. Though many offices remained empty when people had to work from home, a complete shift never occurred; many people are still working out of offices and retail spaces, which means this part of the market should continue its recovery.
How Are Investors Shifting Their Investment Strategies?
A number of rental property owners chose to make some changes due to the pandemic, with some switching entirely to purchasing homes to flip. Because the demand for homes is high, this may be a viable investment strategy for you, too.
Many investors also turned toward flexibility in the commercial space. A number of owners repurposed existing office space to make hybrid work – work that occurs both at home and in the office – more feasible. That often includes things like building in special meeting spaces and creating rooms for teleconferencing.
What Does This Mean for You?
Whether you’re a seasoned investor or a new one, the COVID-19 pandemic may have changed the landscape for you. However, with economic recovery plodding forward and a high demand for places to live (both rented and owned), now is as good a time as any to invest in real estate. Your best bet is to work with a real estate agent who specializes in investment properties. Your agent can help you find the best investments to meet your needs within your budget.
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