In the midst of a global pandemic, it may seem ridiculous to suggest that now is the time to make an investment. However, real estate expert Jacques Poujade begs to differ.
According to Poujade, now couldn’t be a better time to make an investment in a rental property. Here are the top five reasons why rental properties are the best investment you can make.
Remote Work is Changing the Way People Live.
Pre-pandemic, many people working 9-5 jobs were tied down to one spot due to the location of their office. COVID-19 caused most workplaces to go remote permanently allowing people to work from anywhere.
Poujade predicts there will be a lot more renters, especially amongst the millennial generation. “I wouldn’t be surprised to see a lot more flipping in the real estate world due to feeling less tied down to one single home or location,” Poujade told The Times USA.
Mortgages are Low
A major side-effect of the pandemic is that mortgage rates have dropped immensely. According to Poujade, financing a property mortgage is a great investment option for new investors and can save you thousands of dollars in the long-run.
Many Houses Weren’t Able to Sell Because of the Pandemic
Due to COVID-19, many properties weren’t able to sell. This means that you might get a good deal on something that wouldn’t have been accessible beforehand.
The Success of the Investment is in Your Hands
Unlike other investments where profit is determined by outside sources, you have complete control of a rental property. You decide on all the factors from how much to charge to what kind of renovations to make. With all this control, the power of profit is in your hands.
More Stability than Stocks
When it comes to investing, most people immediately think about turning to the stock market. While any type of investing comes with risk, rental properties are more of the stable of the many types of investing.
Why? Because people always need a place to live. “Stocks are unpredictable, and are vulnerable to market risks and fluctuations,” Poujade points out, “It is not immune to trouble (think the 2008 housing bubble collapse). But it tends to be much more stable than the stock market and appreciate in value.”