COVID 19 has created a new way of living for each one of us. Not a single person can say that this pandemic has not changed something in the way that they have lived their lives.
Businesses are not the exception, sadly. Some are closing and some of them are making changes or adjustments to survive.
The real estate world has changed, and it will continue changing over the next few months. People have changed their priorities and now they see owning a house differently than before. On the other hand, we have commercial businesses that have been affected as well.
What should a real estate investor do?
You can say that this is not the end of real estate. Rather, this is a new era where people have other priorities and businesses have adopted a new way to perform.
Before we had COVID 19 many investments were in commercial properties, with co-working offices especially rising in popularity.
As discussed before, there will be changes in people’s behaviors, because they will be looking for residential and affordable properties. The affordable housing area is growing and will continue to grow in the close future.
With all the changes in the market, buyers are likely to buy something they know they will keep needing because we do not have an idea of when things will get back to “normal”.
And of course, the government is aware of this growing area and it is reinforcing it by extending the Credit Linked Subsidy Scheme (CLSS) for the middle-income group up to March 2021. There is also a new investment class in the form of an affordable rental accommodation scheme for migrant workers and urban poor.
This is another trend that will help to increase the demand for affordable homes.
How is the future of real estate going to look?
The future of real estate investment will depend on how supportive the government will be and how stable the economy remains. Developers are optimistic for the upcoming year so hopefully, we will see a positive outlook in demand.
We can’t say if it’s a good or bad idea, but we can say to you that if you are investing you need to consider how the future is going to look: more commercial places or spacious apartments? It is just a matter of adjusting.
And if you are thinking about investing, or you are already a real estate investor trying to put your numbers in order, we are here to help you.
At Terra Business Solutions we can show you the best way to go with your accounting and taxes, and provide you with that extra help you need.
If this is something you think might help you, you can schedule a call with us.
Without any commitment, we can hear your needs and identify if we can help you reach your financial goals with the right business structure.
Are you interested? Click here to get a call with our experts.
I wish you the best. It is not a bad time for real estate investors, it is just a time to change and adjust. See you soon.
