Reasons to Buy real estate in the Pandemic

Low base interest rate 

Due to the consequences of the Pandemic, real estate rate dropped to historic levels. It is currently at 2% a year. This is the lowest level since the beginning of the Central Bank’s historical series, in 1986. To get an idea of ​​how standard this number is, in 2015, the rate reached the level of 14.25% per year. 

What does that mean? The low rate generates two main advantages for investing in the real estate market. First, as it directly influences the interest rate, it is the ideal time to make loans. On the other hand, the remuneration of financial investments drops sharply, as they are profitable when inflation is high.

The more interest rates fall, the less it makes sense to opt for fixed income. Thus, the current moment is arguably the most favorable to buy a property, whether for those who have the cash value and need to invest their money in a safe investment or for those looking for a property to live in, because the interest rates for financing have never been so advantageous.

The advantage of making a loan now is taking advantage of rates that will rise in the future with the recovery of the economy, but whoever makes the contract now closes with this interest rate and, over the years, will only have the correction according to inflation.

Value of attractive properties

Another advantage is that companies are offering facilities and competitive prices precisely because of the recession caused by the Pandemic. With the higher unemployment rate, purchasing power ends up decreasing, and the offer becomes more accessible. 

This means that those who have the capital to invest or managed to preserve their income to pay for a mortgage loan are at a complete advantage. As in any crisis, what can be an obstacle for some, becomes an opportunity for others. 

Safer investment

Real estate  has always been the safest investment. Some are taking quite considerable losses. In March 2020 alone, the stock dropped by 35%. 

The numbers have improved in some periods, but there are many fluctuations, and the scenario is still quite uncertain. In addition to not suffering directly from stock market fluctuations, investments in real estate are not directly related to bank failures. The government cannot freeze them like savings. 

 Even bolder investors, who are used to making riskier investments searching for high returns, diversify their assets by investing in real estate.

The risks in the real estate marketing companies are practically non-existent. Of course, there are always exceptions. Therefore, it is vital to select a product with a good location and infrastructure to choose a construction company with credibility, knowledge, and expertise in the market. 

Constant valuation

The greater the demand, the more valued the product. Considering that some of the most sought-after regions have already exhausted their areas, fully exploited by the real estate market, projects acquired today in these locations will be a treasure in the future, when the offer is even more scarce.

Therefore, when choosing a property to invest in to generate income and resell and gain from the appreciation, consider regions with growth potential or are already consolidated as large centers. A property, as long as it is well-chosen, is an investment with guaranteed appreciation potential.

Those who can invest in real estate in these regions. Great potential will undoubtedly increase the value of their assets. The real estate market has shown itself to be one of the most appreciated segments in the medium and long term. For example, in the last decade, real estate had increased more than 300%, numbers that vary according to region.

And demand tends to grow, even more, increasing the potential for appreciation. According to a survey carried out by the Pakistan Association of Real Estate Developers. This fact, added to the population increase, generates an increase in the demand for housing.

Generation of equity

If you are having trouble organizing financially and saving money, consider buying a property even if you have to finance a large part of the amount. That’s because you’ll have to pay that mortgage every month, like a fixed account, and you won’t fall into temptations that won’t contribute to your future.

This can be a viable alternative at any time for those who lack discipline.  It will invest their money every month and, in the end, have equity. The numbers of indebtedness show that most Brazilians do not have this discipline.

Buying a property in the Pandemic is an exciting possibility. Considering that you will pay a higher amount at the end of the process due to the interest on the financing. However, considering the current scenario with extremely low-interest rates, this ends up not being a negative point anymore.

Financial investments can also be easily redeemed. Temptation for those who are not so ruled as to their financial goals. It will not quickly sell the Property. It is a way to guarantee the preservation of the heritage, which will also ensure the heirs.

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