If you have been following the real estate market before the pandemic, you’re probably used to fluctuation in property prices and popular locations.
However, in a post-pandemic world, the real estate market is moving in unexpected directions. The COVID-19 crisis has sped up some phenomena and brought disappearing trends to life. Whether you want to build a property portfolio or buy a home, you need to make sure you understand the current motivations and motions in the market.
First of all, you want to understand what is driving changes to the real estate market. The answer is: People. Individuals have faced the challenges and stress brought by the pandemic with heavy consequences on their financial situation, mental health, and future aspirations. As a result, those differences are reshaping the property market. For first-time buyers, the situation is as dire as ever. It’s tough buying your first home. Yet, there are new opportunities for buyers and investors to consider. Regardless of your real estate strategy, you want to take the time to get familiar with the emerging and reemerging trends.
Remote work means urban exodus
Remote work has been crucial to the survival of many companies during the pandemic. As a result, businesses have had to rapidly digitize their team and processes to maintain their activities safely. Will all companies retain home-based workers in the long term? The answer is undecided. However, many businesses have already been hiring new talents on the basis of remote work positions. While relocation might be an option for the future, it’s unlikely that workers who were contracted remotely will agree to head back to the office. Consequently, a majority of city dwellers are considering moving out of towns to embrace new locations. If you are hoping to sell your city property to finance the purchase of a new home, you can make the most of digital tools to maximize your reach. Social media promotions can be highly effective, especially as followers can share your post to increase your visibility. A beautifully staged photo can gain a lot of attention on social media, which is why professional staging services make all the difference.
Made to order apartments improve property return
Build-to-order apartments, or BTO for short, have always been part of the real estate landscape. During the pandemic, those projects have been delayed or temporarily paused to handle the health crisis. However, with the vaccine rolling out, more and more large-scale build projects are restarted. If build-to-order flats were not a popular choice for first-time buyers before, they are about to become a top priority for homeowners. Indeed, the properties are comparatively more affordable than neighboring apartments with the same or similar features. Additionally, you can also benefit from monetary assistance depending on your eligibility for grants. For those whose finances have been dramatically affected by the pandemic, this could be an opportunity to get your first home without the burden of a hefty mortgage loan. As the properties are built with practicality in mind, the renovation costs are also lower than for any other property type.
Country farmhouses and cottage renewal
As mentioned earlier, the urban exodus is growing in popularity since remote positions have spread throughout the work industry. Most people who choose to leave the city life are looking to move to surrounding countryside areas. Yet, if you are looking for a property in the countryside, you are more likely to find old farmhouses and cottages in your price range. Indeed, old properties that need renovating and repairing will be among the most affordable houses on the market. This leaves one important question open: How do you renovate an old farmhouse? The process is a labor of love that can take a lot of time. You may need to develop some DIY skills to ensure you can tackle most work confidently. As tempting as it is to reach out to professional renovators, you will save costs by focusing on managing the project room by room and calling an expert for structural, electrical, and plumbing works only.
Crowdfunded property investments
Crowdfunding is not a novelty in the real estate market. Smart investors have already been seizing the opportunity to join large commercial real estate projects before the pandemic. In a post-pandemic world, crowdfunded projects will play a significant role in a portfolio. You may not be able to use crowdfunding as the main item in your investment portfolio, but it can be part of a long-term revenue plan. For beginners, financial planners recommend crowdfunding sites such as Fundrise, which lets you invest with as little as $500, and PeerStreet, with a minimum amount of $1,000. If your investment funds have reduced dramatically during the pandemic, this could be a fantastic opportunity for small investors to build a real estate portfolio.
Buying abroad and moving away
The pandemic has revived the desire to seek a better life elsewhere. As a result, the U.S. government estimates that 8.7 million Americans live abroad. For many expats, the social tensions and systematic racism, brutality, and wealth gap within the U.S. society have been decisive reasons to move abroad. Combined with the pressure of the pandemic, many have been looking at a way out to rebuild their wealth and mental health in a new environment. Your dream house could be more affordable abroad.
A mortgage-free rent-to-own option
While America is an ownership society where two-third of the U.S. population own their home, renting is a necessary evil for many aspiring first-time buyers. Unfortunately, renting means that the rent money benefits your landlord. With increasing rental fees and costs, it becomes essential to consider new options to enable ownership. The real estate market needs to build more homes to stabilize house prices. It could be beneficial for the country’s economic recovery to petition for the creation of rent-to-own programs that don’t require any additional mortgage. To qualify for such a program of public ownership, individuals would only need to move in and pay their rent. A tenant may never fully own the until, but they could draw on the asset receiving monthly payments after enough years of renting or significant dividends in later life.
In conclusion, the real estate market is changing and addressing new financial and social considerations. In a post-pandemic society where mental health and financial health are the new priority, the property landscape is reshaping to meet new expectations.