Is buying A home during Covid-19 A good deal?
The world is under bizarre circumstances. The arrival & spread of Covid-19 was less anticipated. Although medical services are doing their best, the flattening of the curve is not round the corner. Each day brings a new challenge to control the further virus spread. On the business front, the current situation is becoming similar to the recession of 2008. The economies are facing huge losses. This, in turn, is affecting the common man. Many people have lost their jobs. Thousands of people are on the verge of losing it. The finance flow has come to the halt since the past few months.
In this difficult time, buying a home is a good deal or not?
The first thing you need to keep in mind is ‘situation is not under control yet.’ As of today, we can say the real estate business is facing the downfall. The impact of the Covid-19 lockdowns will last longer. There are many changes in the buying behavior of people. They are not willing to spend on high investment products/services. Since property buying is a conscious, careful decision, it is a risky time to invest. Also, the rental payers are not punctual because of the job crisis. It may affect the investor’s interest in buying a new property.
On the other hand, many sellers are ready to offer the minimum price for their property. Although they are not as dreamy deal as of recession at present, you can still think about it. You may get your desired home at your desired price after some negotiation. It also depends on the individuals. If you have a secure job, savings, down payment ready, you should go-ahead for the home purchase.
The real-estate scenarios differ from region to region. For instance, mortgage lenders in Massachusetts may offer lower interest rates while some other region’s mortgage plans are offering high interests. You need to check the scenario & future prospects of the property sector in your area before investing.
TIPS FOR HOME BUYERS DURING COVID-19
1) Plan your home purchase wisely. Ensure you have financial backup.
2) Invest only if you have a secure job, down payment, and provision to pay monthly installments.
3) Buy a home in the strategic location of the city/town to get a better property value when the market restores to normal.
4) Go for less interest home loan options
5) Buy a home in the neighborhood. You can do the maintenance later.
6) Investors try to not sell your property right now. It might not be a good deal.
7) Ask mortgage agents about loan plans that can work for you right now.
8) Avoid overspending on property. The market is not stable. You may suffer from massive losses later.
The real situation of the real estate market worldwide will be known soon. So far, the behavioral changes in buying patterns & job crisis are the evidence of the market crash. The fall of the real estate market will affect everyone differently. If you are a home buyer with everything secure, you can be the deal maker. And, if you are investing without future finances arranged, caution, it can be a trouble for you. Make sure you analyze every aspect before buying your dream home. It should not turn into a nightmare.
For the sellers, it’s time to take a pause rather than making a loss deal. Let the market restore its strength back. Selling your property at dirt cheap rates is not a smart move unless you have no option left.
Drew Mortgage Associates is standing strong in this moment of global crisis. We know things are not much in favor of mankind. We recommend you talk to us about your property-related problems. We will try to help you and provide suitable solutions. Keep coming back to this place as we do our best to keep your updated on the financial & mortgage fronts.
We wish for a speedy recovery of all COVID-19 patients!