Real estate has always been seen as a reliable and stable investment figuring prominently in investment portfolios, regardless of whether the investors are wealthy or have a more modest net worth.
But the global health crisis of 2020 has changed just about every business sector here in Texas and around the world, and real estate is no exception.
Three significant pandemic effects
Many property owners wonder how their current investments will fare under COVID-19 or whether it’s the right time to look for opportunities. Here are three ways the virus has already had an impact:
- Office space demand: Many large businesses have long since moved most or all of their workforces online, utilizing Zoom and other conferencing software to hold individual or group meetings. Many of these businesses have said that even after the virus is under control, they plan to have fewer employees work in an office. At the same time, some of these companies are actively looking for smaller spaces in better locations to house a leaner group of key employees.
- Online property listings: The coronavirus has limited in-person inspections on properties for sale. However, buyers and sellers have made greater use of technology to inspect real estate and conduct transactions online. Instead of only posting photos, live video and virtual tours are vital tools to give buyers a realistic view of these properties.
- Property values: Demand for large commercial office spaces may lessen due to an increased online workforce, meaning it may be a good time to sell these spaces before depreciation kicks in. On the other hand, smaller properties in prime locations may be ideal options for investors to buy now before prices go up due to increased demand.
Navigating real estate investments during a pandemic
Land is tied to just about everything in the Lone Star State. But while location is crucial to success, it’s not everything. Working with an experienced real estate attorney can not only help identify attractive properties but make sure that inspections, deed work, taxes, insurance, financing and purchases are done correctly.