Next to the threat of unabated infections from the novel coronavirus, one of the foremost concerns among people these days is the question of financial security. The ongoing pandemic poses serious challenges not only to governments and the medical community. It is a very personal and devastating event that has affected individuals, families, and entire communities.
While the world awaits the release of a safe and effective vaccine, the struggle now is also focused on keeping businesses afloat, finding a new job for those who got retrenched, or recovering from debt in a world economy that has shrunk significantly in the last few months. Finance experts say that the economic impact of COVID-19 is more massive than the 2007 to 2009 Global Financial Crisis. They also predict that if the negative trend continues, the effect will be more severe than the Great Depression of the 1920s.
But unquestionably, as history has shown, pandemics come and go. People must not be dismayed and distracted by the seemingly hopeless situation because there is a solution to every problem, an opportunity in every crisis. There are ways to go on the journey back to financial health. Whether one already feels the pinch of the economic recession or not, taking steps to improve one’s revenues and other sources of income is always a wise move to make.
Save to Invest
It is an advice that has been told millions upon millions of times, yet many ears have turned deaf to those stubborn people’s detriment. Save to invest is a mantra that will never lose relevance, though. Investing opens the possibility of multiplying your initial capital many times over and ensures not only security but also a financial success.
Most people already understand the principle of compounded savings and interest, which enables a person to earn more by allowing savings to grow over time. But some have to start with a more fundamental principle: delaying gratification. For example, instead of buying that dream sports car, a wise investor will delay gratification and go for a practical choice such as buying quality used SUV. Understanding the difference between depreciation rates of a new car compared to a used vehicle, one would quickly know why buying pre-owned transportation also has its advantage. Investing in a used but good quality vehicle is such a necessity given that some public modes of transportation have been halted as part of quarantine measures.
Choose Rental Properties Near Job and Business Centers
Once substantial savings are made, the next logical move is certainly not to go out on a spending spree and enjoy all that money. The better choice is to develop one’s portfolio in the realm of real property. The middle of the pandemic is a good season to consider entering the rental market as an investor. The pandemic is now causing a slight uptake in demand for homes in liveable cities that have a low- density population. People are looking for communities that are a lot less crowded yet accessible and offer excellent amenities like schools, health care facilities, and places to buy daily essentials. It is an excellent time to research locations that can provide the demand for alternatives to crowded city living.
Research and Look for Good Mortgage Deals
It is vital to spend time poring over details and scouring the market for suitable mortgage deals. Real property investing is a thinking investor’s game. It is not for the impulsive and careless gambler. One needs to study current mortgage interest rates, loan qualifications and requirements, refinancing schemes, other fees that need to be paid, and other details behind paying for a real estate investment.
Renovate to Increase Rental Rate and Property Value
Another course of action to consider is to look for a second-hand home that can be renovated and “flipped” in the market. Getting a mortgage for a second-hand house is more affordable than buying a brand-new home. The way forward, however, is to have it renovated and spruced up. This will add aesthetic and functional quality to the property and would help raise its value. In today’s highly digital way of doing business, the property one wants to sell or rent out must have quality features that would make them attractive on social media and other online portals related to the real estate business. If budget permits, make it fully furnished or semi-furnished since this would add more appeal needed in the rental market.
Despite the far-reaching consequences of this pandemic, history has shown that these unfortunate episodes do not last. A day will come when people can once again socialize, move about without masks, and be free from the fear and anxiety caused by a virus. The other challenge that needs to be faced is in regaining financial strength and security. By taking calculated risks in the property market, one might indeed turn this crisis into a golden opportunity that leads to better financial stability.