Masks, sanitizers, and social distancing have become the new norms to protect our present but what about protecting our future?
Don’t let panic influence your investment strategy. Because, time and again, we have noticed that the markets in India and the world regain confidence and bounce back. Coronavirus has likely forced you to make big changes to the way you operate. It’s almost certainly hit your bottom line too.
Coronavirus continues to spread throughout the world at a dizzying pace, with almost 20 lakh people infected and over 1.2 lakh deaths. Situations in some countries have improved marginally.
Long term investments are less risky
Travel, hospitality, and retail are the sectors that will bounce back very soon and have a promising long term potential in terms of return.
The Covid-19 outbreak has led to a complete lockdown of the economy. The stock market volatility is rising and people are looking at more secure options for investment. The crisis has highlighted the need for shelter and protection in tough times.
Long-term real estate investors have much to gain. While this situation is unlike anything we’ve seen in our lifetime, history has shown that real estate is like a yo-yo on an escalator. It goes up and down, all the way up. So if you are not planning on cashing in on your portfolio within the next several years, you have the potential to make significant gains.
Investment tips during Covid pandemic
In the current scenario, investors prefer regular cash flows and investment options that are less risky. Remember that real estate is not a get-rich-quick game. Anyone who invests should be thinking long-term.
In any kind of investment, whether it is listed securities or startups the core value of a company depends upon its cash flow. There is a considerably long gestation period before investors can see tangible returns.
Invest smartly & wisely
In these global pandemic conditions the economy struggling to regain its footing, a zero-interest-rate environment that might persist for some time, and a Presidential election that is casting uncertainty over the outlook for 2020 and beyond. We are confident attractive investment opportunities exist within this chaotic confluence of events. We also believe that this is a period that calls for a balanced, patient approach to investing that we are going through a period where risks are abundant - in some cases quite novel - and hard to quantify returns.
Opportunities in commercial real estate
In hospitality and retail properties, both have suffered the distress of historic proportions, as measures taken to contain the coronavirus quite literally resulted in many of these businesses having to close their doors or substantially curtail their activity.
On the one hand, with a vaccine or medical breakthrough, hospitality could recover as travel resumes. Predicting the timing and speed of that recovery is virtually impossible at this time, but this has not stopped opportunistic investors from preparing to acquire hospitality at distressed prices for the potential to ride the eventual recovery in the sector.
Office properties have generally benefited from cash flow due to long-term leases, but they also face a market in transition due to the weak economic outlook, as well as the prospect of changes in how and where office space is built or leased.
Consult the experts
No matter what type of investment property you decide on, make sure that you are working with professionals who can guide you during these uncertain times. No matter how much research you do, you cannot replace the expertise of an experienced and knowledgeable real estate agent. Different communities are experiencing different challenges, and you can never assume to know more than those who work in the area day in and day out.
We Shas Properties are trying our best to protect the downside of your current situation. Our vision is to achieve the highest possible standards of the real estate market by helping you find the property of your dreams.
Analyze any deal carefully before purchasing
Make sure you have the budget to cover any costs that may result from extended timelines. Try to acquire a single property and make sure that it’s closed, it’s established and you’ve got cash flow before taking on any other investment. The home improvement industry is booming, and both contractors and certain building materials can be hard to come by. As a result, renovation timelines are being extended, and if you have multiple properties, it could take years to get them completed.
Homestay or vacation properties
Don’t wait If you’ve been on the fence about investing in a vacation home, now may be the time to snap one up. Travel restrictions might be a reality for some time, and so people are taking the money they may have used for exotic vacations and investing it in vacation properties closer to home.
Buy rental property and rent a portion of your existing home
Purchasing a rental property and renting them out is a great way to produce extra monthly cash flow, and renting a portion of your house also gives you the ability to get a feel for what it’s like to be a landlord without making such a huge monetary investment. Real estate investing certainly isn’t for everyone, it can be very lucrative. Many people have made millions investing in real estate. If you want to expand your investment horizons these two ways will give a smart monthly income to your family in this pandemic situation.
When times are good you make money on equity, and when times are bad you make money on financing. At this moment, several months into the pandemic, there is a possibility for both. House prices are holding steady and financing costs are low, which is an almost unheard-of situation. So this is a gift from the real estate gods.