You Probably Do Not Change Your Bedsheets Frequently Enough
- 19 October, 2020
- Tips and Advice
How often do you change or wash your sheets? We got you thinking huh? Many of us keep the same…
The novel corona virus is a global pandemic that has taken the world by storm. Lots of people are in turmoil over it as borders have been closed, economies shut down and industries collapsing. The airline industry is one of the hardest-hit industries. Losses are projected to reach $113B in 2020. Major airlines are currently seeking bailouts to save the industry from any further meltdown. The real estate industry has also felt the heatwave of the virus as many buyers are being cautious during this volatile period.
Should investments in real estate diminish amidst the coronavirus pandemic? As Louis Glickman puts it “The best investment on Earth is earth.” Is it still the best and should we continue to invest in it during or after this pandemic? What should you be doing as an investor, developer or real estate agent? We hope that this article helps you make the right decision.
“Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world.” – Franklin D. Roosevelt, President of the U.S.
One of the biggest questions asked by investors is whether it is still safe to invest in real estate during this global pandemic. Well, this isn’t the first time that a pandemic has occurred but it may be the first time that it’s on such a global scale. SARS was mainly centred in Asia and Ebola was in Africa so the whole world didn’t really ‘react’ in the way that it is doing now.
Global markets are held together by trust. The fear and panic generated by this pandemic have got people thinking twice about their investments. But one thing is certain, the virus will clear and the markets will recover and get back to their usual way. So the question is, what do I need to be doing during this time as a real estate agent, developer or investor? If data from the past is anything to go by then these are integral tips that will help you make the right move during this pandemic and when the dust settles, you should be standing tall.
Small businesses are going to be hit the hardest from this pandemic as commerce has almost come to a standstill. Fear causes a freeze and that is what is evident in all markets globally. This will likely lead to job cuts, desperation sales and some may even end up in vices just because they need to make ends meet. A lot of people will be turning to digital sources to find work or to find innovative ways to keep their business running while keeping safe.
For the Real Estate industry, we are already seeing a lot of things happen. Here are a few that we highlighted.
The government of Ghana and other governments worldwide have lowered interest rates significantly to allow for businesses to take soft loans which are needed to keep them running. Failing businesses can lead to an economic meltdown. Low-interest rates increase the buying power of people who want to enter the real estate market. So as a real estate developer or agent you should be expecting more solid leads.
Even though there are regulatory governmental bodies that oversee and monitor the real estate industry in Ghana, the industry has developed a lot of autonomy over the years. A crisis like this has caused major Universities, restaurants and businesses within the service sector to suspend all activities. The real estate market, however, has slowed down but not at the rate other industries have been forced to do. Investors are taking advantage of the low-interest rates coupled with projected lower sales prices of properties to increase their listings in Ghana.
A pandemic that lasts for a long period normally causes panic sales. People liquidate their assets to ensure cash flow to take them through the pandemic. Investors are always on the lookout for properties that are put on sale during this period.
Knowledge, during this time, is power. Having the latest information on all available and closed listings in Ghana will be highly sought-after knowledge. During the 2009 economic meltdown, it was recorded that the rate at which the price of rent went down was much slower as compared to other industries.
As a property developer in Ghana, there are certain unique issues and opportunities that arise out of this pandemic.
Fewer Leads – Most people project that they will get fewer leads because movement has been restricted but that is not entirely true. More people who want to buy property will start their search online on marketplace websites like Meqasa. Having a strong online presence during this pandemic will give you more leads since the majority of people are limited in their movement physically but the digital world is limitless.
Delays – Developers working on luxury construction projects who source their materials from abroad will have delays in acquiring materials. Developers can source from local manufacturers who also offer quality.
Sales – Properties are developed to sell but not everyone is thinking of buying a house in Ghana during a pandemic. Real Estate investors, on the other hand, are actively searching for good deals during the pandemic. Property developers can also acquire more listings during this period to improve your portfolio. The projected reduction in house prices would make buying property during this season a good option. When the market picks up you would have made a very good move.
Postponements – Surely, as an agent you might be frustrated with all the postponed or suspended events due to the pandemic or lockdowns due to the pandemic. However, as much as face-to-face meetings are effective, in most times, clients in this era are more likely to be open to an online meeting since some investors are actively searching for properties to buy.
Viewings – Obviously, most homeowners will not be comfortable with complete strangers in their homes in the name of viewing during a contagious virus pandemic. You can use other methods to organise a remote viewing online where prospective clients can experience the property from a distance through technology. Innovation is key during these times.
Sales – Agents are all about sales, so not being able to close certain deals due to a pandemic is a bummer. However, you should expect the low-interest rates to attract interested clients who have been sitting on the fence this whole time. Be ready to receive such people and guide them to purchasing or renting a property in Ghana.
Listings – More listings simply means more avenues for business. Keep searching for attractive listings which might interest investors. Listing them online is one of the best ways to get fast leads leading to fast closes of deals for each listing.
A pandemic causes a lot of changes in every industry. As much as some negative change occurs, there are always new opportunities created at the same time. Real estate is still a safe means of investment. As the famous saying goes, “Tough times don’t last, tough people do.”
So if you are in the real estate industry in Ghana, don’t quit, keep making those calls, acquiring properties while staying safe. Get innovative and be alert so you can ride through this wave successfully. Whether all is well or not, people will still need real estate.
“The bottom line: investing in real estate is smart because property is tangible. People always have, and always will, need shelter. This means it is very unlikely that our need for shelter (ie: buying or renting homes) will ever go away.”
–Kathy Fettke, Co-Founder and Co-CEO of RealWealth