Record low interest rates are great, but with all of the other economic uncertainties, many are still wondering if it’s a good time to buy. Low rates can also cause an increase in asking price from potential sellers. This article covers 6 things to watch as you consider investing in real estate post-pandemic.
These factors include whether you are investing to occupy or rent, reviewing your financial situation to assure you can make payments, as well as watching out for hot markets. Avoid looking at what is hot today and instead focus on long term trends.
“The most important lesson potential investors can take away from the COVID-19 quarantine is to be more conservative with their use of leverage and to maintain higher cash reserves so they weather any sort of tenant default issues,” says Lee Gientke, managing partner at Pontifex Capital, a real estate developer in Boise, Idaho.