Is 2020 A Good Time To Buy A Property?
The world is in a tailspin in 2020, and financial insecurity is rife just about everywhere. Job losses are horrendous, as the economic fallout from the coronavirus and government failure to tackle the crisis properly continues to cause everyday folks increasing financial pain. according to the Pew Research Center, 25% of adults have been unable to meet their bills since the onset of the pandemic.
A further 25% say that they or someone in their household has been laid off or lost their job. Even more sobering is the thought that half of the adults who were laid off from their job because of the virus are still unemployed.
So if the economy is tanking what does that represent for the average family’s dream of owning their own home. Is the time right for taking the plunge onto the property market and looking for a dream home in Mexico from Sanmiguelsothebysrealty.com? Well the prospects, there, at least look good, as appears in their blog by Agave Sir who has “grown the most successful group of 20 full-time bilingual and bi-cultural agents and have nearly a 50% market share”.
But is this an exception to the rule. Let’s dive in and learn a little about the state of the property market and prospects for the future in these uncertain times.
The Property Market: Boom or Bust?
Before the coronavirus outbreak, home sales in the USA were at their highest level for over 10 years. Property experts are forecasting that property prices will continue to rise, but at a slower rate.
In relation to the pace of property sales, in February 2020, for the first time this century, according to property market specialists Housingwire,com, the property market was “the sector outperforming in the economy rather than a lackluster underperforming sector.”
The outlook for 2020 into 2024 is that house prices will continue to grow, because even over the past year, as at the date of this post the median house price is 11.4%higher than one year ago, pandemic or not. Mortgage rates are attractive, but some experts believe that those of us who are lucky enough to have cash to invest, will park their money in real estate because of the potentially attractive yields on the investment.
Of course there will always be a strong market for rental homes, be they single family homes, townhouses, or condos.
It is thought that investing in a second home or a holiday home like the best vista cay resort apartments in Orlando, Florida that can be rented is a sound way to grow an investment, especially is that are managed by a experienced property management company.
The management company will charge a percentage for the rental income for overseeing tenancies, repairs and maintenance and rental collections, and they can even arrange private chef catering from Foodfireknives.com to make your guests’ stay even more enjoyable. This will take much of the stress of ownership out of the way, especially if you live a long way from your rental property.
The Takeaway
Owning a property, whether to live in as your main home, or an investment property second home is a large commitment, no doubt. It is more important than ever that you ensure that you do not over-extend on the borrowing, ad n that you are sufficiently financially secure to hold on to the property for some years even if the market slumps.
Make sure that you have plenty of equity in your home, and that you have sufficient cash reserves to rise out any future financial crash, in case you cannot rent out your property to cover those outgoings.
If you apply a ‘safety-first’ policy in our property investing, you will undoubtedly fid tat in the longer term your property will be a sound investment for your family’s future.