Idan Vidoser recently discussed whether or not it is wise to invest in real estate during the COVID-19 pandemic.MAPLE, ONTARIO, CANADA, December 4, 2020 /EINPresswire.com/ -- The COVID-19 pandemic has turned the economy upside down. For real estate investors, or even first-time homeowners, this means record low mortgage rates we may never see again once the pandemic has passed. However, buying real estate during a pandemic comes with a number of risks. Real estate investor Idan Vidoser recently discussed whether or not investing in real estate is a wise decision right now.
"This is one of the rarest circumstances I've seen in regards to real estate investing," Idan Vidoser said. "Normally, if the economy is good, you profit on equity. If times are bad, you can profit on financing. Right now, it is possible to profit on both."
Idan Vidoser explained that this pandemic has caused a rare circumstances where house costs are remaining somewhat high, but mortgage rates are at record lows. While this may seem like a Christmas gift from the real estate gods, Idan Vidoser explained that this situation will definitely change. He explained that the pandemic has made people hesitant to sell their homes. Partly because they're spending much more time there, and partly because they're unsure about selling, moving, and buying again in the current economy.
"However, government subsidies were keeping people afloat for a short time," Idan Vidoser said. "Those have now run their course, and we're expecting more people to put homes on the market as they become more pressed financially."
Idan Vidoser explained that this could be a positive for real estate investors, as experts are predicting a 9 to 18 percent decrease in home prices by the end of the year. He added that despite a possible decrease in home prices, homes are appearing to hold more value since the pandemic. Although, Idan Vidoser explained that where you buy may have a major effect on the profitability of your investment.
"Rural and suburban areas are appearing much more desirable lately, as cities have become COVID-19 hotspots," Idan Vidoser said. "For the first time in a long time, the condo market has been reduced."
Idan Vidoser explained that easy access to city centers is no longer as desirable as it used to be. However, he advised against chasing trends. Once the pandemic has passed, cities may see an influx of buyers again. Buying affordably in a city now could benefit an investor greatly in the post-COVID years to come.
"There's no telling exactly what the real estate market will do," Idan Vidoser said. "But this is certainly one of the most interesting times in recent history for real estate investors. It's time to make wise investments wherever we can."
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