Investment Tips for Beginners in a Post-Pandemic Future = The corona pandemic made a huge hit on the United States just about two years ago. And though we are not officially in a post-pandemic society, things are much closer to getting there right now.
As things seem to be less and less scary and we are more knowledgeable about treatments some are getting into a post-pandemic state of mind. Some may even be looking into ways to boost their income and help them financially prepare for future emergencies. For many, this has turned into becoming a new real estate investor.
Here are some investment tips for navigating the world of real estate investment right now and into a post-pandemic future
Make sure you have emergency backup plans in place when purchasing rental property
At the very beginning of the pandemic, there were emergency measures put into place to freeze evictions and this put many landlords into tight financial situations. They were unable to evict tenants who could no longer pay rent which left them paying rent while also being unable to take on a new tenant that may have been able to do so.
Some believe it unlikely for landlords to face this situation again but it is not completely off the table. It is always a smart move to make sure that you have measures in place to help cushion any emergency that could come your way. Should anything happen where the government needs to help people out and freeze evictions again you want to make sure you have plenty of backup income in place when rent profit is limited.
It can look lucrative and promising to purchase real estate, especially if you have cash for a sizable down payment. It is important not to overextend yourself purchasing income properties. Owing money on several mortgages could be a risk at any time without the proper financial stability.
For example, a tenant at any time could for any reason choose to stop making rent payments. This is not something that happens only during times of widespread emergency.
Consider other forms of investment opportunity
Purchasing rental properties is not the only way to get into the real estate investment world. You could choose to purchase an REIT. Or you could choose to partner up with someone and venture into the world of investing together to help give more financial security. You could also opt into investing in the business sector with several other investors on one property. It is said that office space and factories are going to be in high demand.
It can be a promising adventure to enter into the world of real estate investment, but it should always be done with much caution and a little bit of learning from the not-so-distant past. You always want to make sure you’re making the best-informed decision. And of course, it is always smart to find new revenue streams to help build your portfolio and make sure that you are stable through the next emergency.
For more information on purchasing real estate in Snohomish County, both residential and commercial, please contact us anytime.