The past few weeks have been quite challenging. So much has changed since the fight against COVID-19 began and the metro was placed on community quarantine for over a month. With the number of infected patients steadily increasing each day, the future–at least for now–remains uncertain.
As the economy and life, in general, slow down these days, one is faced with the dilemma of whether or not–and if so, where–to invest. Several markets have already reported experiencing massive downturns, and while there are fears that the real estate industry may follow suit, this specific type of investment still shows stability through market ups and downs.
Here's why investing on real estate may be a good call in times of crisis:
It's a more stable investment choice.
Compared to other short-term volatile markets, real estate is more stable and flexible because of its long-term and slower-to-move nature. Investors can very well rely on it for steady income. Case in point: rental properties.
It gives you a diverse portfolio.
A diverse portfolio, both in terms of asset and location, helps ease the pains of a global health/ financial crisis. You'd still be better off even as one or two of your most valuable possessions deal the blow.
You get some of the best deals.
With real estate demands relatively low at this point, take advantage of flexible price schemes that are being laid out to you. This is also a good time to explore properties in rising CBDs that offer more reasonable prices but with very high potential growth and returns. All it takes is a little negotiation between you and the seller.
You can always bounce back.
The real estate market has always been resilient from the start, having surpassed a number of recessions already. Though investments continue to fluctuate–especially in times like this when we have an ongoing pandemic–relative returns are deemed to be attractive as usual.
It may hurt to invest in the real estate now, but as Allan Roth–founder of the Colorado financial advisory firm Wealth Logic–says, "Pain is a sign you're investing well."
Sources: JLL, Lamudi, CNBC