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Sign on building stating The Word Is Temporarily Closed - Is Real Estate Still a Good Investment During Covid?

Is Real Estate Still a Good Investment During COVID?

Sign on building stating The Word Is Temporarily Closed - Is Real Estate Still a Good Investment During Covid?
Is real estatea still a good investment during Covid? Find out which factors you must first consider before making a quick decision.

Is real estate is still a good investment during Covid? As a property investor, the current pandemic is probably making you wonder. Because of the global epidemic, buyers are reluctant to buy and sellers are reluctant to sell. However, if you were already considering investing in real estate before the Coronavirus, should you still invest now?  The answer is not a simple yes/no.

As a real estate investor you probably lean toward one of two categories;

Will real estate cash flow during Covid?

Regardless of the pandemic or a recession, rather than asking is real estate still a good investment during Covid? Ask a different question. When you flip or rent your investment property, will the income be enough to cover your expenses plus some profit? If the answer is yes, then your property is cash flowing. At first glance, it appears to be  a good investment.

Is Real Estate Still A Good Investment During Covid?

Do you have maintenance savings?

With any property, there will be maintenance costs. Do you know what these costs are, and have you budgeted  for them? Or,do you have enough savings to absorb these expenses and still make your property cash flow?  Would a big maintenance expense or a series of maintenance expenses put you and your family into the red zone? If so, then you might want to wait until you have a larger nest egg saved up before investing in a property.

Do you know how to screen for good tenants?

Do you know how to screen for good tenants? Good tenants are the foundation of your business as a buy/hold/rent property investor.  Screening is the tool that will help mitigate risks and must be learned and utilized for every tenant and for every property. Do you know how to advertise your property? Do you have the knowledge to property manage it yourself? Or, are you confident in your ability to find a reputable property manager?

Will your insurance cover long vacancies?

Back to the question, is real estate still a good investment during Covid? If the market is slow and your property is sitting vacant, will your insurance coverage be active for vacancies of over 30 days? Vacant units are difficult to insure. While unoccupied, if a disaster occurs such as fire/flooding, you could lose your investment.

Can you afford to absorb the mortgage during vacancies?

No one could have predicted the global pandemic. Many people were laid off, many more lost their jobs. Some municipalities made it illegal to evict during the pandemic, which was good for tenants, bad for landlords. The reality of any rental situation is that couples break up, people lose their jobs, tenants can vacate early. As carefully as you may have screened, these things can still happen. So back the question, is real estate a good investment during Covid? How long can you absorb the mortgage without it putting you in panic mode?

Is Real Estate Still A Good Investment During Covid? Have you considered…

Does your insurance cover catastrophes?

In addition to Covid, flooding in the spring has been an unfortunate occurrence in Albert during the past five years. Is a catastrophe such as overland flooding, hail, a fire or a tornado covered by your insurance policy? If not, would it cause you to lose your investment?

If you’re flipping, can you bank on your timelines?

For fix and flip properties, even if you get a smoking deal, are you able to access labour and supplies quickly? Does your local area have contractors who can work within a time frame that algins with your timeline/budget?

How’s your  personal cash flow?

What happens if you get sick, lose your job or have to provide care for an aged parent? Once more, is real estate a good investment during Covid? During a crisis, will you have enough assets to stay afloat with the additional property investment?

How is your local economic market?

Has your area been hard hit by the pandemic?  Is your local economy diversified or reliant on one industry? And again… is real estate still a good investment during Covid? If your economy is dependent on one industry, affected by Covid, probably not.

Is Real estate still a good investment during covid – only you know

As a real estate investor, with interest rates at an all time low, it’s a great time to buy. But, despite low interest rates, is buying now a good invesment for you? Only you will know.

Is real estatea still a good investment during Covid? Find out which factors you must first consider before making a quick decision.

Is real estate is still a good investment during Covid? As a property investor, the current pandemic is probably making you wonder. Because of the global epidemic, buyers are reluctant to buy and sellers are reluctant to sell. However, if you were already considering investing in real estate before the Coronavirus, should you still invest now?  The answer is not a simple yes/no.

As a real estate investor you probably lean toward one of two categories;

Will real estate cash flow during Covid?

Regardless of the pandemic or a recession, rather than asking is real estate still a good investment during Covid? Ask a different question. When you flip or rent your investment property, will the income be enough to cover your expenses plus some profit? If the answer is yes, then your property is cash flowing. At first glance, it appears to be  a good investment.

Is Real Estate Still A Good Investment During Covid?

Do you have maintenance savings?

With any property, there will be maintenance costs. Do you know what these costs are, and have you budgeted  for them? Or,do you have enough savings to absorb these expenses and still make your property cash flow?  Would a big maintenance expense or a series of maintenance expenses put you and your family into the red zone? If so, then you might want to wait until you have a larger nest egg saved up before investing in a property.

Do you know how to screen for good tenants?

Do you know how to screen for good tenants? Good tenants are the foundation of your business as a buy/hold/rent property investor.  Screening is the tool that will help mitigate risks and must be learned and utilized for every tenant and for every property. Do you know how to advertise your property? Do you have the knowledge to property manage it yourself? Or, are you confident in your ability to find a reputable property manager?

Will your insurance cover long vacancies?

Back to the question, is real estate still a good investment during Covid? If the market is slow and your property is sitting vacant, will your insurance coverage be active for vacancies of over 30 days? Vacant units are difficult to insure. While unoccupied, if a disaster occurs such as fire/flooding, you could lose your investment.

Can you afford to absorb the mortgage during vacancies?

No one could have predicted the global pandemic. Many people were laid off, many more lost their jobs. Some municipalities made it illegal to evict during the pandemic, which was good for tenants, bad for landlords. The reality of any rental situation is that couples break up, people lose their jobs, tenants can vacate early. As carefully as you may have screened, these things can still happen. So back the question, is real estate a good investment during Covid? How long can you absorb the mortgage without it putting you in panic mode?

Is Real Estate Still A Good Investment During Covid? Have you considered…

Does your insurance cover catastrophes?

In addition to Covid, flooding in the spring has been an unfortunate occurrence in Albert during the past five years. Is a catastrophe such as overland flooding, hail, a fire or a tornado covered by your insurance policy? If not, would it cause you to lose your investment?

If you’re flipping, can you bank on your timelines?

For fix and flip properties, even if you get a smoking deal, are you able to access labour and supplies quickly? Does your local area have contractors who can work within a time frame that algins with your timeline/budget?

How’s your  personal cash flow?

What happens if you get sick, lose your job or have to provide care for an aged parent? Once more, is real estate a good investment during Covid? During a crisis, will you have enough assets to stay afloat with the additional property investment?

How is your local economic market?

Has your area been hard hit by the pandemic?  Is your local economy diversified or reliant on one industry? And again… is real estate still a good investment during Covid? If your economy is dependent on one industry, affected by Covid, probably not.

Is Real estate still a good investment during covid – only you know

As a real estate investor, with interest rates at an all time low, it’s a great time to buy. But, despite low interest rates, is buying now a good invesment for you? Only you will know.

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