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Real Estate Investing Tips During Coronavirus

Over the years, real estate investing has become a popular option to strengthen investment portfolios and to create a passive flow of income. While this aspect of investing is constantly changing, major changes have recently taken place as a result of the Coronavirus. With many areas entering stay at home orders with fewer people venturing out and concerns over the virus in general, many types of businesses have slowed down. As you approach your real estate investing during the aftermath of this pandemic, there are certain tips you need to follow to ensure your investments continue to provide the return you’re looking for.

Don’t Give Up

Although it may feel as if the world has stopped entirely, it’s important not to give up on your real estate investing ventures. In fact, now is a great time to keep going because prices and interest rates will be lower and you’ll be more likely to get the properties you’re interested in. However, this doesn’t mean you shouldn’t make any changes to how you do things. It’s critical to remain flexible, learn how to obtain secure funding and continue to network, even if it’s online.

Increase Your Marketing

Even if it feels as if no one is buying or selling, the truth is a lot of people are in need of money right now. This means they’re more likely to let go of properties they don’t really need or they were holding onto for sentimental reasons for the sake of making money to live. Increasing your marketing efforts will help you reach these people and find properties for sale you might not otherwise encounter.

Buy for Less

Don’t be afraid to offer less than the asking price when you do buy property. Sellers are understanding people will be less willing to pay more for property at this time so they expect to receive these lower offers. However, keep in mind there’s a chance property values may continue to drop for a period of time, so you’ll need to be prepared to absorb that drop or wait until prices rise again before selling.

Complete Virtual Transactions

More companies are going to contactless interactions where they meet through video conferencing and telephone calls, rather than in person. It’s easy to look for properties online or list them for sale online. While people will want to see a property before they buy it, for the most part, you can complete most of the steps involved in buying and selling can be done virtually.

Prepare for Long Periods on the Market

You may be used to buying a property, flipping it and selling it for a profit in a relatively short period of time. However, this isn’t necessarily going to happen at this point in time. For many investors, buying properties you intend to rent out may be more lucrative for the time being. However, if you do choose to purchase a property you intend to sell, be prepared for it to spend a longer amount of time on the market before it sells. Higher priced properties will sell slower than lower priced properties.

Expect More Stringent Lending Requirements

Lenders are also tightening their belts. If the last housing market crash taught them anything, it was to be careful about lending money to individuals who are in a rough financial situation. They aren’t interested in falling victim to this problem again. Therefore, they have made it more difficult to qualify for loans, which can have an impact on your ability to purchase properties.

Top 5 Factors Driving the Real Estate Investment Market in Arizona

Arizona is , without a doubt, is one of the biggest and most popular states in the country. The capital city, Phoenix, presents a number of appealing factors which help to make it one of the great cities to live and invest in. In fact, it offers something for everyone. The state of Arizona has modern recreational entertainment, dining and shopping facilities, great weather and interesting cultural attractions.

In recent years, the real estate market in Arizona has continued to grow and thrive. In addition to other pull factors, this area of the US offers buyers a wide array of properties to choose from, including patio homes, condominiums, twin homes, townhomes and family residences. Here, learn more about the top five factors that are helping to drive the Arizona real estate market forward.

1. Economic Growth

The economy in the state has kept gaining momentum in the past few years, which has had a direct impact on the real estate market as a whole. There has been quite a bit of growth in the existing industries, along with more startup businesses moving into the area. A number of new companies have also opened new branches, offices or even transferred their headquarters to the state, due to the friendly business environment.

The result has been an increase in job opportunities, improved standards of living, higher income and falling levels of unemployment. For example, Phoenix has several employment opportunities available in the healthcare, finance and retail sectors. This growing economic growth in the state has helped attract more people to move to the area, resulting in an increase in the demand for residential and commercial properties. Experts have estimated that Arizona is going to have sustained economic growth throughout 2018.

2. Changing Demographics

In the previous years, the population in Arizona has grown and changed significantly. Other demographics in the state have also changed, including migration patterns, economic status, age and education level. The increase in the population in the state has helped to stimulate the demand for more housing units. A large number of people have employment, which means they are able to buy or lease properties. Age has also helped to diversify the real estate market as millennials, baby boomers and Generation X will keep the industry healthy.

This growth in population has helped to increase the demand for other services and goods, too. As a result, there’s a greater need for all types of properties, including office spaces, restaurants, hospitals and apartments. With a growing number of people, investors are finding this a promising area to inject more money into the real estate market.

3. Appealing Interest Rates

The interest rates on property loans play a huge role in the overall real estate market. This is because most people prefer to have a mortgage payment plan. A low interest rate means a lower mortgage payment and a higher demand for real estate in the area.

The mortgage interest rates in Arizona are low, which makes it appealing for people to buy, rather than rent. Also, buyers can expect to see under four percent interest on various fixed loans. Hard money lenders have also helped to boost the Phoenix real estate market. These private lenders have made it simple to get fast hard money loans.

4. Competitive Pricing and Affordability

While Arizona is listed as being one of the top five metro regions in the U.S., the property prices are still affordable. In fact, the average cost of a home in Phoenix is around $255,000. As a result, many people find it more affordable to live in this state. In addition to the property prices, Arizona cost of living is lower compared to other larger states. This means that you will spend less on education, transportation, healthcare, gas, and food. The friendly living environment has helped to boost the real estate industry in this area.

5. Lifestyle

There are varying climates in the state of Arizona that range from warmer weather in Tucson and Phoenix to cooler temperatures in Flagstaff and Prescott. As a result, it’s a suitable location for many lifestyles. The region is home to some of the very best golf courses, local events and hiking trails in the United States. While the social amenities are amazing, the state of Arizona is also much safer than other parts of the country.

When it comes to where you want to live, work and play, there’s no question that Arizona should be on your list. In addition to having a booming economy, you can easily invest in real estate here. This state has grown in recent years, and if the experts say buy, then you should listen. If you want to take advantage of the amazing opportunities in Arizona and become a real estate investor, now is the time to make a move.