With COVID-19 running rampant across the globe and countless countries shutting down, many of us are stuck inside, maybe working from home, and getting a case of good old cabin fever. All this newfound free time is allowing our imaginations and our aspirations to run wild—and many of you might be wondering, “How can I make money during the quarantine?” Ever since cases of the coronavirus started popping up, the stock market has been on a down-spiral—but what does the coronavirus mean for the real estate industry?

Think About This

Before you make any sort of investment, let alone in real estate, you should take a look at all of the elements before making any final decisions. If you are thinking about purchasing a property, here are some factors to keep in mind:

• Competition. Pay attention to what your competition is doing—or isn’t doing. When the market is hot, there are a lot of investors searching for the best properties. However, during times like these, there are often fewer people looking to purchase a property, which can be an excellent opportunity for you. Having fewer prospects means that sellers will often be more inclined to negotiate prices.
• Price Changes. Keep tabs on any fluctuations in the price of the property you are thinking about purchasing. If the seller reduces the price, there is a good chance that they are very eager to sell and get it off their hands, especially in times like these. If they cut the price, you probably have even more wiggle room to negotiate them down and get a bargain for your buck.
• Time on the Market. If somebody is selling their home or other property, they will become increasingly desperate to get rid of it the longer it is on the market. As each day goes by, they incur more and more costs for ownership and maintenance. If you are looking to invest, search for properties that have been on the market for a while.
• Seasonal Trends. Some investors argue that winter is the best time to buy. This is because homebuyers tend to stop searching when the holidays begin rolling around, and any owners who are not pressed to sell their properties will temporarily take them off the market. That means that the homes left on the market are ones that sellers really want to sell, and the buyer pool is far less saturated during the winter months.
• Reaction to Change. When you are looking into a property, you cannot just look at the numbers that are available now. You have to think in the long-term: what happens to the property if numbers go up? If they go down? How will the property fair during turbulent or stagnant times in the market? How will any changes in the market affect your ability to make the most out of this property? 

What is the market like right now?

With new headlines every single day and different executive orders being instated here and there, it can be difficult to decipher the current real estate market conditions. However, here are three facts to consider when deciding whether or not to invest right now:

• Properties are affordable. While areas like New York City and San Francisco can be egregiously expensive, there are other places (such as Dallas) that are like goldmines. You just have to do a little digging to find them.
• Interest rates are low. With everything going on and thousands upon thousands of people losing their jobs or being temporarily unable to work, interest rates have dropped substantially.
• Demand is increasing. Over the last few years and even now, the demand for properties is increasing—especially for rentals. If you are thinking about investing, survey your competition first.

So… is now a good time to invest in real estate?

The truth is that there is no “right time” to invest for everybody. It differs based upon the resources you have available, where you want to invest, market conditions, and a whole myriad of other factors that you need to take into account. You could make thousands of dollars by investing during a recession, and you could also make thousands of dollars by investing during an economic expansion.

As long as you have the ability to invest in present conditions, a plan outlined for success, and the research to back you up, any time could be the right time. If you have done your due diligence and think that you should wait, then wait—and if you think it is a smart move to invest right now, go for it.

We at Fast Trac Consulting have a niche in real estate and property management. If you have any questions, feel free to contact us.