Tal Valariola & Itay Barak on Investing in Real Estate during COVID19

The COVID 19 pandemic has bought upon a lot of havoc. Nobody expected this pandemic to last as long as it has. More importantly, no one knew its impact would be this harsh. Almost every industry has been affected by it and there are several cases where businesses still continue to take a huge hit because of this crisis. Experts have been analyzing the financial impact caused by the Pandemic and they have come to the conclusion that the affect is more significant than what they initially believed.

The real estate market in particular has experienced a massive impact because of the pandemic. Most would say that the affects have come in a variety of unprecedented way. Numerous people noted that the value of real estate as a whole took a massive hit since all of this started leisure and hospitality sectors have taken a massive part of the brunt and with the virus still in full swing, it would be fair to say that things could get worse. There are several asset classes that have been surprisingly sold. What’s most surprising about all of this is that these asset classes have been sold in considerable amounts.

Healthcare facilities, malls, student housing and various other classes have also taken a massive hit because of this crisis. And from the way things have been going as of late other classes could also become negatively affected because of the ongoing occupier demand variations.

We asked Tal Valariola & Itay Barak, two prominent businessmen in the real estate and financial sectors to give us some tips on the currency real estate situation, during this worldwide pandemic.

Tal Valariola:

“A lot of you might argue that the e-commerce industry has vastly benefitted from the pandemic. However, a large number of people firmly believe that these benefits might not last as long why? because they believe that the returns from real estate logistics could reduce as human and good movement could slow down after some time. Furthermore, the lockdowns imposed in most countries reduced the expected return rates of construction and letting in a massive way. Governments have ordered the postponement of the development of any sew site. Most of you will also be aware of the fact that a large number of human activities have come to an indefinite stop, and with the implementation of social distancing measures, expect to see a significant drag in the commercial premises’ ability to steadily generate cash flows.“

Itay Barak:

“That being said, there could be a great bright side to it. It is highly likely that the demands of consumers could slowly but surely shift towards properties that are more efficient. This is particularly true since the implementation of the lockdown as it has revealed cons of a variety of buildings that are energy intensive. Whenever residential properties are being talked about, people always discuss where they will work and live. This could be credited to the advent of remote working. Everybody wants flexibility in their lives and investing in real estate could well and truly be the solution that people have been looking for. It would even be fair to say that the demand for properties is slowly increasing as time passes by.“

Would Investing Be a Wise Idea During these Times?

A lot of you reading this might be wondering if this is a good time to invest in real estate. In most cases, people would be skeptical as it seems like a risky idea. While there will also be people who think that it is a wise idea and could yield them excellent results. Just like anything else, there are two sides to the coin with this situation as well.

Itay Barak states further on the subject:

“Real estate in general does not come cheap and people have to pay ludicrous amounts of money in order to acquire it. That being said, some people believe that real estate prices would go down during the pandemic. They believe this because they think that quite a lot of people are selling their properties for less than desired rates. Could this be true? Well, there is no black and white answer to this question. However, the answer could lie somewhere in the middle. There are some people who are desperate to give away their properties for low rates. Why? because as most of you may know, a large number of employers are quickly laying off their workers. So, a large number of people are quickly losing their jobs and finding themselves desperate in order to make ends meet. For a lot of people, the only viable solution seems to be selling their properties for whatever price they get and shifting to smaller homes.”

Tal Valariola continues:

“A lot of you might be surprised to find this out but it is true. A staggering amount of people are quite desperate to get money, even if it means to shift in a smaller property by selling of their current one. What’s most surprising about all of this is that this trend could continue for a long period of time. Financial instability looms large and it would be fair to say that there are hundreds upon hundreds of people who find themselves in a seriously tough spot. Since a lot of these people do not seem to have that many options available, giving away their property for lower rates seem to be the only viable solution for them. All of this does give credence to the fact that one man’s lost is another man’s gain, and the pandemic is proving that this statement is indeed true. “

Valariola and Barak are certainly right, you should be very careful selling your real estate during this period of time. There is no timeline regarding when things would get better. This means that things could come back to normal within a few months too. With so much uncertainty looming large, being patient seems to be the only sensible way to go. Just look at how most of the successful real estate investors and traders operate and you will learn that they are in no kind of rush. It would be best to follow them and make sure that you do not give away your property cheaply.

Are there any Risks Involved?

Of course, while there are a lot of opportunities to make money, it would be best to keep in mind that there are quite a lot of risks involved as well. You never know how things could turn out after all of this ends. For all we know, real estate prices might as well go down in the future. Therefore, it would be best to assess your risk and make sure that you are in the clear. You will be surprised to find out that there are a staggering amount of people who enter the real estate trading world without paying too much heed to the risks involved in it. They end up paying dearly for their mistakes, so much so that they lose a considerable amount of money. It would be best to steer clear from situations like these and make sure that you calculate each and every risk involved in your endeavor. And bearing in mind that all of us have an epidemic looming over our heads, some extra caution could take you a long way.

That being said, there is a certain amount of risk involved behind every success. Very few people are able to make it big without taking risks. Does this mean that you have to go all out and put all of your money on the line? Absolutely not! In fact, it would be best to make sure that every decision you take is calculated. Talk to any real estate expert in the market and he or she will tell you that while taking risks is a laudable trait, you have to make sure that it is calculated. Otherwise, things can go sideways very quickly and cause you a lot of financial trouble down the line.

The COVID 19 pandemic in particular has been nothing short of uncertain for every real estate broker. Sure, there are tons and tons of opportunities to invest your money but the market situation is quite unstable. Things seem to be going great one day while there is a total shift of momentum during the other day.

Is Real Estate Success Possible During these Times?

Will things may seem dark and gloomy right now, it is critical to remember that achieving success in the real estate world is indeed possible. As a matter of fact, plenty of people have proven that you can make a considerable amount of money if you play your cards right. All you need to do is make sure that every step you take during this endeavor is meaningful. Quite a lot of people tend to make wasteful decision and they come back to bite them later on in life. You should always be mindful of the fact that the real estate broker who you are dealing with could be wiser and more knowledgeable than you, therefore, it would be best to play it straight and steer clear from trying out underhanded tactics as it is a surefire way to get yourself in trouble.

Have there been any Unusual Developments?

There have been a large number of rumors regarding the real estate world ever since this pandemic started. It would even be fair to say that misinformation was running rampant and people did not know what to believe and what not to believe. Most of you may be wondering whether there have been any reports regarding unusual developments. Well, the simple and straightforward answer to that question would be no. Quite a lot of researchers and real estate experts have been hard at work in order to try and determine if there were any notable changes ever since the pandemic hit. To their surprise, things were not as bad as they thought it would be. As a matter of fact, property rates seemed to be more favorable in a few cases. This is not to say that the pandemic hasn’t made an impact on the real estate world, but so far it hasn’t been that bad according to various pieces of research.

Most enthusiasts claim that the changes that they are seeing are only there for the short run. In the long run however, things will remain unaffected and the real estate landscape will continue to flourish as it has been for a long period of time. The rapid population growth over the past few years has created a sturdy demand for spacious residents. It seems like this demand will only continue to grow in the time to come as more and more people in the youth are beginning to earn steady income to rent or purchase houses for themselves. And if we go by what the reports are saying, it seems like the pandemic will not have much of an impact on what the people want, which means that the real estate world will more or less remain unaffected.

Why hasn’t there been much of an Impact?

Barak says about this matter: “A lot of you might be wondering why there has not been too much of an impact on the real estate world. After all, the Pandemic crisis has been running rampant for months and has been creating problems for quite a lot of industries. So what is it about real estate that makes it sort of immune to this pandemic? Well, the answer to that is relatively simple. The reason why this pandemic did not affect property prices in different parts of the world is because real estate rarely loses its attraction whether the times are favorable or tough. Investors are always searching for opportunities to invest in real estate and this time it is no different either. A home, no matter how good or bad it looks is still a place to live in, and as long as population in different parts of the world increases people will always be searching for spacious places to live in. It is an excellent opportunity for investors and they are going to make the most of it, COVID 19 or not.”

Should Beginners Consider Investing In Real Estate During COVID 19?

The real estate landscape is very attractive for investors. More and more people are showing interest in entering in this realm. Why? because they are well and truly aware of the fact that there is a considerable amount of money to be made. A large number of people, who spent a considerable amount of time learning the ins and outs of how real estate trading works, would testify to the fact that it indeed makes them a considerable amount of money. However things are quite different these days because of the pandemic. No one is certain whether it would be a good or bad idea to enter this field during this time.

Do you also happen to be a beginner who is wondering if entering the real estate world would be ideal during the COVID 19 era? Well, the answer is not as straight forward as most people would think. Why? because there are quite a lot of variables involved in it. However, if you are looking for a simple and straightforward answer, that would be no. Why? because the real estate landscape is quite vast, you have to gain a considerable amount of knowledge in order to make it big in this field. A large number of people have entered it with the hopes of making tons and tons of money but they fell flat. Why? because this field is not for inexperienced people. You will lose money instead of making it if you do not carefully navigate the rough waters of the real estate would. However, this does not mean that you should refrain from becoming a real estate broker altogether during these times. As a matter of fact, there are plenty of things you can do to increase your chances of profitability without actually investing money for now.

Don’t Bide Your Time

A lot of people who want to start their real estate journey from scratch would be kicking themselves thinking that they would have to wait for a long period of time before they get started. However, people with a successful mindset think differently. They are well and truly aware of the fact that they have a lot to learn. So, they make sure that they do not bide their time by being idle and learn everything there is to learn about real estate.

You should have the same mindset as well. Why? because it is the only way to achieve success in this field. There are a lot of details that you should be aware of if you want to make it big in the real estate world. The first thing that you should start with is the fundamentals. Take as much time as you want to understand the basics. Once things start becoming clear, you can go ahead and learn the technical part of this field. Sure, real world experience is necessary a well, but do not ignore the basics.

Be Mindful of the Pitfalls

While there is no denying that real estate investing is a profitable venture, it can also prove to be a slippery slope at times. There are plenty of things that you should be mindful of when dealing properties. There are quite a lot of laws, rules, and regulations that go over people’s heads. It makes for a terrible mess and often leads to losses if people do not watch over their backs. Therefore, it would be best to educate yourself regarding how real estate brokering works. Sure, it takes some time to understand everything in great detail but the results are more than worth it. Just make sure that you are patient enough and are keen enough to learn new things. You will be surprised to find out how much there is to learn in this landscape. But once again, it is important to keep in mind the pitfalls that you could face down the line.

Laws change quite often and people make honest mistakes. Sadly, the penalty they have to pay for such mistakes can be quite devastating. Keep yourself updated regrading such changes and steer clear from anything that could create a troublesome situations. These Pandemic days, in particular, have a massive cloud of uncertainty surrounding them. Make sure that you stay in the loop and remain in the clear.

Manage Your Expectations When Investing

Quite a lot of people have the tendency of getting ahead of themselves when dealing properties. This is particularly people who are new to this field and have enjoyed a recent streak of success. Getting overconfident could get you into a great deal of trouble. It does not matter whether you are selling or buying during the COVID era. What matters most is that you keep a level head and manage your expectations. The reason why this statement is being reiterated time and time again is because people often think that they have a valuable property in hand but when they actually go ahead and try to sell it, the money offered to them is very little.

Itay Barak: “The pandemic in particular has seen plenty of such cases. People get false hope and think that they are bound to earn sizeable sums of money when in reality; the money offered to them does not meet their expectations one single bit. So, it would be best to aim for the best while keeping realistic expectations.

Final Thoughts

Investing in real estate certainly is not a lost cause during the pandemic. There have been a considerable amount of cases where people made and continue to earn loads of money. Your knowledge and experience are massive determinants of how you are going to do in this field. So, make sure that you take your time to understand how this industry works in case you happen to be new. However, if you have some real estate investing experience, you can rest easy knowing that COVID 19 has not had as much of an impact on real estate as most of use initially thought.

Tags:

iCrowdMarketing