As everyone knows, coronavirus (COVID-19) has become Pandemic and is affecting the whole world and also affecting the world's economy. Due to which, every business sector like stock market, petroleum, gold prices and either going down and facing the highest rise in price. Now, in this global crisis, investors are really worried about their money and where to invest it for assured returns. Let us tell you that the REAL ESTATE market is a solution to all your problems and worries. Also, below are 5 things you should keep in mind while investing in the REAL ESTATE:
Be patient: Patience is certainly a virtue when you are buying while everyone else is selling. Remember, you have the upper hand. Look at many properties in order to get a good sense of exactly what you are looking for and exactly what price you would like to pay for it. You have no pressure to buy anything. You are in the driver’s seat and should use that advantage to wait for the perfect deal for you.
Negotiate aggressively: In this economic environment, the buyer has the upper hand; don’t be afraid to use it. Negotiate in an aggressive manner. Realize that the seller almost certainly needs to sell their property far more than you need to buy it. This could save you tens of thousands of dollars on the purchase price.
Look for profitable rentals: The key to real estate investing in any market is strong positive cash flow and profitability. Understand what you will be laying out monthly to not only finance, but also maintain the property. Make sure your income from the property will be sufficient to cover these costs.
Don’t overspend on repairs: Although granite counter-tops and wet bars may have been a big seller in 2005, the name of the game today is practicality. Pick inexpensive yet quality materials that will be aesthetically pleasing and functional. Forget the WOW factor. Keep your costs low and you will attract the right renters or buyers.
Keep your leverage in check: A tremendous problem that leads to real estate troubles is over-leveraging . A mortgage that is too large cannot be sustained by rental income.