Global economies are still adapting to the losses and challenges of the pandemic. Even so, many property developers advise that now is a good time to buy a condo, supplied with protective condo insurance. Reasons for this include the growing desire of buyers to live independently, while conveniently avoiding a crowded lifestyle. This would also continue the practice of physical distancing and other health and safety protocols.
But, is this also the best decision for you to make right now? Here’s what buying a condo is like in the time of COVID-19:
Decreased demand, retained interest
A property market report from a global real estate firm indicates residential demand for condominiums became softer in 2020 due to COVID-19’s impact. But although demand for condo units decreased drastically at the start of lockdown, there was retained interest in this property type. This means that in spite of having fewer listings on real estate marketplaces, there is still a high number of inquiries for buying a condo. Property seekers have the intention to buy, only with more considerations at hand.
Rising prices for condo units
According to the central bank’s latest survey, prices of condo units rose by 30.1 percent in the second quarter of 2020. This is the fastest spike up among other housing units, despite COVID-19. This suggests the idea for some investors to flip their condo, or simply purchase a unit and resell it right after for profit. But real estate developers advise against this, because doing so wastes the opportunity to capitalize on increased prices. They insist that owners can still maximize returns on their investment by 2021 and beyond.
Continued benefit from passive income
One of the advantages of owning a condo unit is being able to rent it out and earn, while the economy is still unstable. Having more sources of income to aid for survival is very practical. For this reason, it is not uncommon for a number of investors to own multiple condo units. As a landlord, it would help if the contracts prepared for future tenants are open for compromise. Keeping an open mind to people’s struggles during the crisis or other unforeseen events would be considerate, and may even provide better business relationships for you in the future.
At the end of the day, you can reap the benefits of investing in a property by understanding its highs and lows during COVID-19. Make the most of your ownership of a condo unit with a trusted non-life insurance in the Philippines of your choice.