The theme of real estate investments is among the most discussed since the Covid-19 health emergency broke out. If you intend to approach this area in the objectively complex period we are experiencing, it is necessary to be aware of some aspects that can run counter to the success of the investment.
Real estate investments in the time of Covid: this is what can happen
When you approach the world of real estate investments at the time of Covid, among the things that stand out is the obvious prevalence of supply over demand. Data in hand, two sellers correspond, on average, to a single buyer. The consequence for the sale price of the property is anything but positive: it does not rise and fall.
If you really intend to invest in real estate in this period, it is advisable to study the market carefully and focus on areas where demand is known to be high. Otherwise, at least not for now, it’s time to let it go.
Another factor which should be taken into account when investing in real estate it concerns the demographic decline. Today, in fact, there are fewer children. Those who invest in real estate must take the view that, in the long run, the demand for homes will be greatly eroded compared to current parameters.
No doubt about it: there are several factors to which it is appropriate to pay attention when deciding to start invest in real estate in an unprecedented period like the one we are experiencing. Another point worth dwelling on concerns the fact that, today, the market is asking for houses with an ever lower environmental impact (this demand has grown a lot over the years and will continue to grow).
If your own immobile it belongs to the lower energy classes, as the years go by it will become increasingly difficult to sell it. In addition, it must be taken into account that energy redevelopment interventions have a considerable cost. Ok, there are some advantageous tax breaks, but on the moment the money goes out.
Finally, it is appropriate to mention the economic crisis that we are going through and of which the full effects are not yet seen. To realize this, just point out that the freeze on layoffs is still ongoing. When they leave, there will be many people without work and, consequently, more people in difficulty in paying the rent and without the economic possibility of buying their first home.
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