Editorial Invest in Slovakia
Coronavirus, a new type of virus that has caused a pandemic of global proportions never before seen in modern history, has struck the into the lives of each and every one of us. Some have lost their jobs, others have realised that they have no enough savings, and others who were just in the process of buying property, or were thinking about investing in property suddenly froze. Is it that much of a coronavirus with regard to real estate investing bad? Let's look at the facts.
The initial 6 weeks since the declaration of the state of emergency by the Slovak government, on 12 March 2020, have been the worst for the real estate market. Nobody suspected, what the current situation with the spread of the coronavirus could escalate into, and so many buyers and sellers alike became more conservative and took a wait-and-see tactic.
But time has shown, that even coronacrisis with prices real estate did not move, and so once the measures were relaxed, the process the buying and selling of real estate started all over again.
Crisis not crisis, the truth is that people need somewhere to live. Real estate agents just needed to find a way to meet the demand for real estate in a way that preserved as much social distance.
The entire sales process has gradually moved to the online environment, where many properties we can see the premises through a virtual 3D tour. Some offers are accompanied by extensive videos. The buyer is thus able to get a comprehensive picture of the appearance and condition of the property they are considering buying.
Despite the negative impact of the corona crisis on the economy as a whole, however we do not see a decline in property prices, which remain unchanged compared to the period before March 2020.
The market even are influenced by factors that could cause prices to move more upwards, and thus allowing property prices to continue to grow dynamically. One of these factors is also inflow of new money into the economyissued by the European Central Bank in an attempt to mitigate the negative effects of the coronary crisis.
Another factor is also still low mortgage interest rates, which motivates many people to buy property. Plenty of money in the economy will allow banks to lend more mortgages at more favourable terms.
Current situation according to experts, especially favours buyers who would like to finance the purchase of their new property through a mortgage loan. The reason for this is the change the value of the loan, which will have thanks to expected inflation after the crisis will be lower in real terms, which is for beneficiaries mortgage borrowers an excellent starting position.
Therefore, if you are thinking about investing in a new property, you have nothing to hesitate about.
On the contrary, you should turn the current situation to your advantage and use this opportunity, while which will not only value your assets and money, but also avoid the rise in property prices that will most likely come right after the crisis.
The basic difference between today's coronary crisis and the 2008 crisis, according to experts, is real estate offer, which is today record low, while in 2008 it was exactly the opposite and the there were plenty of properties on the market to buy.
The second difference is the purchasing power of the populationwhich is calculated as the ratio between the average wage and the price real estate. The latter is fundamentally higher today than it was during the crisis in 2008.
In the case of anticipated suspension of the construction of new housing units but also of commercial space, there will be an even greater shortage on the real estate market property, which should push prices even further upwards.
We believe that we have given you provided in today's article some interesting facts that are related to real estate investing. And don't forget, the Investícia Slovensko platform also offers continues to offer an investment opportunity in real estate crowdfunding since a one-off investment of EUR 100. For more information visit www.investiciaslovensko.sk, where you will find all current investment opportunities.
