4 Ways to Profit from Real Estate in a COVID-19 Economy
COVID-19 has caused many people to panic. From sickness to financial stress, the ramifications of this pandemic are severe. However, all hope is not lost. Where there’s a will, there’s a way.
It is possible to profit as a real estate investor despite the current state of our economy,
Here’s how to invest with confidence right now:
1. Learn From the Past Housing Crises
We all remember 2008. For many investors, it is the housing crisis that we will never forget. The housing markets in countries all around the world crashed. Brought on by the fall of the US stock market, the financial crisis resulted in a housing market crash in South Africa.
South African banks offered easy lending criteria, people borrowed too much money and then went into debt. Millions of homeowners and investors around the world got burnt.
However, not all real estate investors suffered.
Instead of panicking, successful real estate investors stayed informed, adjusted their investment strategies and profited. Instead of losing money- like millions of others- they made money (and a lot of it!)
But how did they do it? Let’s look at Robert Kiyosaki as an example.
In 2002, Robert Kiyosaki predicted the 2008 financial crash in his book Prophecy. But no one believed him!
Robert analysed the market, saw the warning signs and altered his investment strategy. He managed his risks, invested smart and not only did Robert survive the housing market crash, but he profited from it. We all know where he is today- with a net worth of US $100 million.
2. Keep Calm- the SA Real Estate Market is Booming
If you’re a real estate investor, the first thing that comes to mind when you hear “unstable economy” or “recession” is probably housing prices.
A housing market crash is an investor’s worst fear- but it hasn’t happened in South Africa quite yet. Here’s the thing- yes, property prices occasionally decline. But that’s only happened twice in the past decade! And every time property prices have dropped, that short-lived drop has been followed by a sharp increase in prices.
If you look at South Africa’s property prices over the past 10 years, you will see a steady upwards slope.