If you were planning to buy a property in 2020, COVID-19 could have put a damper on your plans. However, all is not lost as you can still achieve your goal during the epidemic. However, you must first determine if buying a property right now is a suitable investment.
Fortunately, during COVID-19, we will look at the positives and cons of buying a new property. This will help you make well-informed financial decisions about whether or not to continue with the investment. Read on to find out what's best for you.
Advantages
Less competition
With less competition for property during COVID-19, finding your dream property in Panama should be simple. Even though housing demand is generally strong, some potential buyers have chosen to stay away.
While other buyers are waiting for the housing market to improve, you can take advantage of the situation and buy a property now. This will allow you to negotiate more reasonable offers. As a result, you won't have to compete with offers from other property buyers.
Lower mortgage rates
Many property buyers and sellers have pulled out since the coronavirus hit, reducing sales activity. As a result, mortgage interest rates have been adjusted in some banks, I recommend reviewing the current bank offer.
As a result, it is often the best time to buy a new property. Borrow a fixed-rate mortgage to take full advantage of low rates. You'll pay the same low rates even if mortgage rates go up in the future if you do it this way. Obtain a mortgage pre-approval letter to assure the property seller that you will be able to purchase the property.
Possibility of property price increase in the future
You should buy a property now because, if things go back to normal, property prices will almost certainly go up. Although property prices are low now, most real estate professionals believe they will rise in the future.
So why can property prices go up? When social isolation and quarantine are lifted, many potential buyers of properties that had been left out would return and demand would skyrocket. As a result, buying a property today will save you thousands of dollars.
Disadvantages
Various logistical hurdles
Due to the strict rules and policies put in place during COVID-19, buying a property is more difficult. You may not want to leave your residence to meet a property seller face-to-face. However, if you do, you must adopt social distance to prevent the virus from spreading. Remember that buying a home usually requires several face-to-face meetings due to the large number of people viewing the property.
However, the entire process has been hampered by social distancing regulations. Property sellers canceled tours and open houses. Visitors cannot see the residences of the vendors who still live in them. Unfortunately, not all prospective owners have made the switch to virtual sale.
Insecure employment
We have seen the most staff layoffs due to coronavirus this year. Many prospective buyers are facing financial difficulties, which discourages them from making a real estate investment.
As a result, most of them have chosen to take a step back. If your income is uncertain and you're unsure about the future of your job, now may not be the best time to buy a new home. Layoffs can happen now in any industry, making it impossible to predict what will happen to your job in the coming months or years.
Conclusion
Whether it's a good time to buy property during COVID-19 largely depends on your financial position. Take advantage of mortgage rates and low property prices if you're in a better position to invest today. You will save thousands of dollars this way.
Artículo Original de: JSF & Asociados