Buying a home is one big move. The pandemic has also thrown up a great number of questions over the future of the property market. Different kinds of headlines are making opportunists wonder if now a good time to invest in real estate?
If you are considering it, there is no better time than now. Why is this so? Why shouldn’t you wait? Why is now the best time? The reasons are listed below;
- Real estate prices are at low: Properties in real estate are pretty affordable. The provision for payment in instalment makes it even more affordable. Considering the fact that shelter remains a basic need of man, coupled with the quest for one that is affordable, you may want to consider residential investing as it would always be in demand no matter the condition of the economy.
- Real estate is a great long term investment: Investment in real estate has overtime, not been characterized by volatility, unlike stocks and shares. Appreciation in value has always accompanied every investment in properties. A comparison of the value of any property with previous years will always confirm a much higher value. We are heading for a downturn and there is no better way to secure your money than to invest in real estate.
- Supply and demand: Homes are getting more expensive every day. One of the factors responsible for the rising cost is a high demand for properties as against its supply. When there are too many people that want to buy homes and not enough homes to meet their demands, competition for the available supply drives price resulting in an increase. There is a shortage in the supply of housing needs now, but it will be worse in the future. The implication is that the price will soar even higher. It is better to buy now than wait for a time in future when the problem becomes even worse.
- Rental prices are increasing: The ever-rising costs make buying a home an impending expense. If you are living in a rented apartment, you may end up paying rent monthly, an amount that may be a lot more than the amount you would have been paying as monthly instalments to acquire the house. What’s your take? Will you rather expend a greater chunk of your monthly income on rent and allow the chance of owning your home slip by perpetually?
- Hedge against inflations and pandemics: The annual inflation rate in Nigeria jumps to 12.26 in March as recession looms. Investing in real estate for the long term has over time proven to be a good strategy to hedge against inflation.
The long term capital gains derived from real estate investment means that an investor would always be better off holding property than most other investment vehicles.
Predicting how long this pandemic would last and its impact on the economy is near impossible but history shows us that real estate investments would always be a safe form of investment. Why not contact a credible real estate company to get you started. You would rest easy knowing your investments are being concentrated in real estate rather than in the much more volatile stock market.