Buying a home during covid-19 pandemic? It can be done under the right circumstances.
We usually think of rental property owners as being large companies or entities, but there are millions of rental units owned by individuals. If those individuals have no income from their tenants, those owners might default on their mortgage payments or try to sell their units. Those units may be single-family homes, townhouse units or condominium units.
The best advice we can give you is to stick to basics:
- Determine how long you plan to stay in your new home. If it’s less than five years, look for a property where you can build value.
- Understand how much you can spend. This isn’t a time to spend beyond your means and hope for the best. It is likely that prices will decline in the short run, so don’t overspend.
- Find a place that meets your needs. Unless you’re getting a dream price, you may want to spend for the neighborhood and improve the home over time. (See No. 1 about building in value.)
- Find the right neighborhood for you. Look for a good school district, as homes in those neighborhoods tend to hold their value better in a declining market and rise faster when the local market is strong.
- Make sure the financing you obtain is on terms that work for you now.
As you make that decision Buying a home during covid-19, you have to take a long view of the market. Your plan should be to live in your first home for at least five years. Over that time, you’ll have the enjoyment of a home, and in five years the market outlook should be quite different from where we are today.
