These days, real estate is a very fast-paced, fast-growing industry. Consequently, it’s not that easy to break into it. Did the pandemic change the situation for thousands of investors? In this article, we take a look at the obstacles you will likely encounter on your way to success in this industry as well as the opportunities you can find no matter what the situation is.
The famous quote says:
“The best time to start was yesterday, the next best time is now.’’
And we agree: there is no right or wrong time to start investing in real estate property and have some extra income.
Historically, the real estate industry tends to swing up and down. Let’s examine the three obstacles and three opportunities in real estate investing during the pandemic and see if, in 2021, it still offers any favorable prospects to RE investors.
Obstacle #1: The Rising Price Of Real Estate Properties
Opportunity for Investors In Real Estate World:
As we all know, the COVID-19 pandemic forced many people to start working remotely, and it made sense for many of them to move from big cities to smaller towns and suburbs. When the daily commute to the workplace is no longer part of life, it may be prime time to take advantage of lower rental prices, more spacious housing, lush green backyards, and all those pros of living outside the big city. However, the housing supply remains low, and the situation is not solvable immediately as the pandemic restrictions do not help with construction speed. All of that means that the real estate market is very hot and the demand is very much there – and that means that there are some potential investment opportunities for you to invest in.
To start investing in real estate properties, one should be aware of two essential factors: Real Estate Prices & Interest Rates. When the market is going up, the prices may appear to be relatively high. On the other hand, in today’s market reality, conventional interest rates are historically low. In terms of securing financing, it is now more affordable than ever. And the logic is clear: the lower the interest rates, the more house you can afford, whether it’s for a long-term investment, flipping, or anything else.
While many growing areas are seeing housing price increases, there is a decline in some other areas, creating potential opportunities for real estate investment. As many U.S. citizens are now permanently working from home, some locations – for example, the Greater Los Angeles and the San Francisco Bay Area – are seeing their real estate prices, both in private housing and rentals, slump.
Obstacle #2: Adapting To The “New Normal” Working Format
Opportunity Grabbing In Real Estate Through Online Communication:
As the COVID-19 pandemic hit the country and the lockdown was instituted to try to prevent the spread of the disease, many employers were forced to quickly shift gears and send their employees to work from home making everything online. This sudden significant change had a serious impact on the real estate industry. For one, networking or making connections in real estate investment is no longer as personal as it used to be when you could just take your customer or business partner out for lunch or coffee. How do you go about rubbing shoulders now, then? Easy! As our life and social norms have changed, so has communication etiquette. You no longer need to email or text someone to arrange an appointment. Just pick up the phone and have a conversation. Or set up a zoom meeting (yes, we know how annoying they are! But they work.).
Online interaction may be a bit more challenging, but it also has lots of positive sides. It is cost-effective and often more efficient. It is also less time-consuming, as there’s no need to spend time driving somewhere to meet up. But it’s good to keep in mind that you can still add some personal touches. For instance, when you are in contact with someone, send them a box of their favorite treats or a handwritten postcard just to make things more pleasant and personal.
Obstacle #3: Unemployment Crisis Due To The Pandemic
Opportunity for Jobless People To Become A Real Estate Investor:
Here’s the harsh reality: a lot of people lost their jobs due to the pandemic, and you may be one of them. If you’ve ever thought about a career change other than giving services, you’ll be pleased to know that the real estate industry is open, growing, and thriving. Buying and selling houses to earn some money hasn’t been shut down by the pandemic; in fact, with people moving all over the place, it’s on the upswing. Now is an excellent time for you to have the ownership and get into the industry. Such huge investment opportunities don't come every now and then.
This is a great job opportunity for those who’ve contemplated getting into real estate even before the pandemic but didn’t have the time to take classes or gain the requisite knowledge of the industry and its rules and regulations. Now you can actually take it up, study the resources, and learn the skills to become a real estate investor, flipper, or agent yourself and start looking for a property to make some profit.
Hard times are often a good challenge for a savvy business person. Some people see multiple ways to profit during a tough period; others just panic. A good investor can find ways to prosper in any market, even though it may mean having to adjust your strategies. But the opportunities to invest are there if you just look for them.