Is it a Good Time to Invest in Real Estate Now?
I had been contemplating and planning to buy our own family home for a very long time. Way back when I started my family we have our own home but due to difficulties, we had experienced we have to let it go. Now that there is an ongoing pandemic, perhaps like me, you are also wondering whether it is a good time to invest in real estate now.
The Effects of Pandemic on Real Estate
The real estate market is said to be having a "donut effect| according to Stanford University research. "Rising prices in the suburbs and slumping prices in major city centers being hollowed out by a fear of crowds and the growth of working from home."
"Four key factors are at play in creating the donut effect: the economic shock from the virus, the lack of access to city amenities due to lockdowns, the aversion to dense areas due to fear of virus spread, and the ability to work from home (WFH). The first three factors are likely temporary, suggesting that markets could rebound," the research added.
This effect is true not only in the United States but also in the Philippines and other parts of the world. People are more convenient working from home than actually traveling to the office. It is also perhaps the driving factor why many real estate companies are boosting their marketing and promoting discounts and savings.
Why Invest in Real Estate Now?
People are considering buying a home rather than rent due to the current condition. If you want to make work-at-home convenient and less stressful, investing in your own home is very practical. You will not worry about noise pollution, decoration, home office design and more when you have your own home.
Also, according to an Inquirer article, "Despite the economic slowdown, land values have continued to climb across Metro Manila, including in Makati, Taguig, Pasig, Mandaluyong, Quezon City, and Alabang. For Lobien, this should serve as an indication of how land values could further appreciate once the economy picks up."
"Emerging business hubs, such as those along growth corridors, could stand to appreciate the most, and offer enormous opportunities for those looking at a 10-15-year horizon," the article added.
This means that it is a great time to maximize discount opportunities being offered now and future projects being made because the pandemic has no big effect on home valuation. Development is continuing despite the lockdowns.
How Do I Prepare to Invest in Real Estate?
You can calculate your mortgage qualification based on income through this mortgage calculator. This calculator defaults to presuming a single-income earner. If your household has 2 income earners then you can expand the "spouse or partner" section to enter their income information.
Another good thing to know is what your home mortgage or real estate property repayment will look like. We recommend this repayment calculator which provides you not only with a chart but also graphic representations of them.
My Property PH provides a very good article on the "3 Questions To Ask Yourself When Buying a House." Let these three questions guide you on your decision especially since undoubtedly these are still challenging times.
Some Things to Consider When Buying a Home
Here are some things to consider when investing in real estate or your own home during this crucial time:
1. Internet Connectivity. Since Work-from-Home is a primary consideration nowadays, you should check the internet connectivity in the area. What networks are available and what is the average speed of the connection.
2. Proximity to Your Work. We all want the pandemic to end, so if ever it ends, your new home should still be within commuting distance to your work. This is very ideal, however, we all know that real estate prices in the city is more expensive than those that are a bit far away.
3. Living Condition. What is the current living condition in the area? What is the availability of water, electricity, and other services? How near is the area as regards school, market, etc?
I believe the above main considerations should be key when deciding about your real estate purchase.
Where to Find Real Estate Properties?
One of the biggest sites that focuses on real estate online is Lamudi. If you want to know what's happening in the local real estate market or find out key details which you need to help you decide then you can check out their real estate trends. These trends are a collection of up-to-date reports on the Philippine real estate market.
Meanwhile, if you are looking for a huge discount and are also a member of Pag-IBIG Fund you can check out their list of properties for sale or acquired assets.
In conclusion, we would say that now would be a good time to invest in real estate as long as you have the capacity to pay them. There are more discounts and sellers are more than willing to negotiate due to the current financial problems brought about by the COVID-19 pandemic.
If you have any questions, feedback or comment please don't hesitate to add it on our comment section. Thanks for reading!
