Any time the country or the world experiences a calamity, investments can go into a tailspin. What is true for stocks and bonds, however, is not always the same for the real estate market. Before you rule out buying and selling during difficult or unstable times, take a moment to consider what you hope to achieve and how long you expect it to take. This information can help you decide whether the real estate market is a safe investment for you during a crisis.
Supply and Demand
Real estate has always been about what is available on the market and what drives people to invest in it. For people who just want a new home, houses are there for the taking, but it may require more perseverance than a home search does when the economy is stable. In Las Vegas, the market is strong, especially for single-family homes, which tend to perform better than townhouses or condos in tough times.
The Good News
With historically low mortgage rates, buyers are still interested in finding good deals and making property investments. These rates are not going to stick around forever, and motivated investors are on the hunt for hot properties in the suburbs for those people looking to break away from the city and enjoy a slower pace, especially when working from home. What that means for buyers is that you may have a fair amount of competition for turn-key real estate. Make sure your paperwork is in order before you start a search in earnest so that you can act quickly when an opportunity arises.
The Long and Short of It
During a disaster, short-term investing can be quite volatile, and in this case, the real estate market is no different. Property is a long game, making long-term investing a safe bet. The market can fluctuate, but down the road, values should continue to climb steadily. If you can afford to park your money in property and wait, your patience may be rewarded.
Passive Income
Does your investment goal include passive income from rental properties? Here is where trying times may have an impact. Short-term rentals may decrease during a downturn, as tourism can take a big hit. Some segments of the population may also struggle with paying rent, which in turn can affect a landlord’s cash flow. These issues, however, tend to be temporary. You may need to adjust your plan and remain flexible until good times return.
Risk Assessment
As with any investment, there is risk involved, and real estate is no different. The important thing to remember is to stay diverse. Decide where you can generate capital now and where the payoff may occur down the road. Whatever you do, stay calm and confident. If you take a somewhat conservative approach to investing during a crisis, you should be in good shape.
To learn more about real estate opportunities in Las Vegas, contact EXP Realty. Our team knows the ins and outs of healthy property investments throughout the Vegas area and can help you meet your future financial goals.
