Here’s the thing about the coronavirus pandemic: it made us rethink the way we consume, use the money we have, save, and communicate with our loved ones. With our own mortality staring us right to our faces, we are forced to take stock of how we manage all aspects of our lives—from personal relationships to finances. Much more than that, when it comes to security, the pandemic showed that real estate investments are much better than any other kinds of investments and sources of passive income.
The worst thing that you can do during a pandemic (aside from going out without a mask, of course) is not to review your current financial standing. It is during this pandemic that you saw how vulnerable you can be when you don’t own a home or when you are working as a non-essential. You have to make yourself indispensable. More than that, you have to stabilize your home, finances, and relationships.
Have you always eyed a piece of land for sale? Have you always dreamed of building your own home on that parcel of land? If you have the opportunity now, wouldn’t you want to make an offer for it? But first, how do you make sure you are ready for such a big commitment?
Stable Source of Funds
How do you make money monthly? Repaying a mortgage is all about how much you can pay monthly. Where is your money coming from? Is it from employment or a business? If you want to buy a property, you need to make sure that your employment or business has not been affected by the coronavirus pandemic. The funds have to be available since you are going to use them to apply for a loan and to repay that loan.
How are you supposed to make an offer for something that you cannot afford? Gauge how much from your steady monthly income can go into making mortgage repayments. If you cannot afford the property, find another source of extra income.
Location of the Property
Now more than ever, it is important to consider where the location of the property. If it’s in the city, you may want to reconsider as people are starting to move away from the city because the virus spreads faster there. But if you’re planning to turn it into a rental property, then the city is a good place to consider. You should also look at the amenities near the property. Is it near the hospital, school, and government offices?
The pandemic taught people to be more conscious about their health. If you are buying a property for your family, look for developments with green features. The more the property is surrounded by trees and plants, the better the air quality is. Properties with more sustainable features should be more attractive moving forward because of the benefits of living there such as reduced energy wastage and lower risks of virus transmission.
Plan for the Future
Where do you see yourself 10 years from now? That seems to be a trivial question that you only hear during job interviews. It’s a valid one, though. You cannot make investments based only on what you want right now. You have to think about your plans for the future.
Are you planning to move to the suburbs? Then, how sure are you that you’ll be able to manage a rental property in the city? Do you want to be self-employed in the next couple of years? Can your projected income from self-employment pay off your mortgage?
You must identify your strengths and weaknesses as an investor. Real estate is a good investment, but it’s also a risky one. And while you may have a stable income right now, remember that the impact of the pandemic will be felt long after it is gone. Make sure you have enough to cover your repayments.