Buying a home is one big move for families and usually involves taking out the time to research location, house types, environment and most importantly the price. If you consider price an important factor in your decision making and you are hoping to get a good deal on a house then there is no better time than during a recession.
This actually goes against the natural human instinct to save and wait out the recession, so the logical question to ask is why is now the best time? The reasons are listed below;
- Interest rates are low: The implication of this that you make virtually nothing saving your cash in the bank right now, in fact, you lose a bit of your saving for every month your money sits in the bank. Inflation rate will typically increase during a recession as interest rate depreciates, and at the point where the inflation rate exceeds interest rate, the funds saved up in your savings account slowly depreciate. So now is a good time for those looking to buy property and a bad time for those who have their money kept in their accounts.
- Real estate prices are at low: Properties will be cost reasonable less and not because they have lost value, but simply because fewer people are buying. The provision for payment in installment makes it even prettier. 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 relocating to an area where you can get a nice property for a reasonable amount. Click the button below for details of our properties available for sale.
- 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.
- Increased need for more space:With the 5 weeks-long COVID-19 lockdown you may just have realized how small your current home is and how much you need more space. Well, buying a bigger home in the suburbs might not sound so bad since you will be working remotely anyway,
- Supply and demand: Houses generally are getting more expensive every day. One of the factors responsible for the rising cost is high demand for properties as against its supply and the ever-increasing cost of construction materials. 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 as rent monthly, an amount that may be a lot more than the amount you would have been paying as monthly installments 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?
Are you still yet to make up your mind? If you do decide to invest, Merit Abode is a transparent real estate firm that has provided homes for over 500 families and can help you navigate the ever-changing landscape of the real estate market in buying your first home.