We’re all facing unprecedented uncertainties over our finances, health, and even jobs because of the pandemic. But why do some experts still say that COVID-19 is the best time to start investing? Among all these things we’re currently experiencing, most of us must consider making new investments to secure our financial status.
If you’re one of those who considered investing in real estate. Should you proceed to invest in a property in Canada amidst the pandemic right now? Or should you wait it out until the whole economy recovers? These are just some of the questions that have us thinking about in the past few months. Questions compelling enough to rethink our lives and livelihood. The COVID-19 outbreak is so unstable that it put a halt in some people’s purchasing decisions. It not only upended businesses but their personal finances too.
Before we decide if the following years are still investment-friendly, don’t forget that the condo property market is cyclical. There will always be good times and bad times, so never forget the power of proper timing. Economic experts are optimistic about the potential of the condo property industry in Toronto, particularly for those who want to diversify their property portfolio. We’ll share with you a few reasons why.
Why COVID-19 is the Best Time to Start Investing
Robust Condo Property Market
One good thing about the condominium property industry in Toronto is its stability, and it’s proven historically. Volatility and stability are usually the primary concern of property owners like yourself, and you shouldn’t worry about it too much. While condominiums are not as volatile as other investments like the stock market or bitcoin, the property sector is always one of the industries expected to always bounce back with any crisis, just like our current health crisis COVID-19.
While the value of properties plummets during lockdowns or announcement of any crisis, condo properties for sale in Canada and elsewhere in its cities have always been stable. Besides this, the condo developments are resilient enough to handle the impact of the pandemic. We should expect an increase in demand three to five years from now, and in effect, these properties’ prices are expected to increase gradually. That’s why COVID-19 is the best time to start investing.
This pause that’s been brought by covid-19 could be thought of just as a softening of the pre-construction condo market, not necessarily its demise. In fact, pre-construction condos have been on an upswing since early 2010. High demand will spur how quickly it recovers.
Still Strong Purchasing Power
While property builders are not rushing into selling their units anytime soon, they are not, in fact, lying low. They are even seeing into building more properties and selling more units because owners are looking into purchasing more properties because of their favourable cash flow and capacity to pay. The pandemic is a temporarily minor “setback.”
This also holds true for condo buyers who have a stable income source to focus on investing in properties. Prices are at an all-time low, and those who can pay should take advantage and invest at the low market prices. We are emphasizing how you can capitalize on opportunities that this pandemic has made.
The Resilience of the Pre-Construction Condo Market
One of the reasons people prefer investing in condos vs other assets is because of their resilience. We all have seen how volatile the stock market is, one day it’s high the next day it has lost a big piece of its value in just days. Real estate prices, like condominiums, haven’t’ even budged. You can ask anyone who owns a condo or two. No one has regret investing in one as a residence or business property, ever.
Final Piece of Advice
Condo developers are already doing their role in helping rebuild the economy. However, they should consider how they can contribute to improving the community’s effort in strengthening their protection against the current crisis. They should not be only developing sustainable condominium projects, but also health-sensitive.
When you purchase a condominium, the best practice is to hold on to it for at least 5 years. If you’re considering getting your ROI. But we recommend keeping it for as long as you can or even put it on lease for higher earnings potential.
So to answer your question if is COVID-19 the best time to start investing, you definitely should.