What will happen to real estate in the Dominican Republic?How much will the price drop down?
What to do with the rental?
How to invest in the coronavirus period?
Should I buy a house or apartment now?
Will coronavirus negatively affect real estate buyers?
At first, the news was about how diligent the virus was, how many victims, what conspiracies in this whole event, now everyone is donating money to create a vaccine. Many countries are thinking about prolonging quarantine; people are saying that quarantine can last until autumn.
How it will be we do not know. In the meantime, the real estate sector is slowly suffering throughout the world. We, like you, care about what will happen next and how to do it right for those who have real estate, who want to buy or sell real estate, rent or regularly lease it. This post is for you.
We analyzed the different opinions of analysts from America, Canada, the Dominican Republic, and Europe and highlighted several important and useful thoughts.
1. Commercial real estate is likely to suffer the most during and after the coronavirus. Most of the people around the world are now working remotely; some of the people have lost their jobs. For this reason, there is simply no need for offices. Business owners are now incurring losses, and to recover, they are unlikely to lease offices after the quarantine has ended since this is an additional cost. And during the quarantine period, people adapt to work remotely. Also, it is cheaper to provide a company without a physical presence, online companies are cheaper.
2. Globally, there is no strong decline in property prices. At the beginning of this year, the unemployment rate was one of the lowest in history, mortgages were a bargain, construction permits were increasing, and salaries were rising. That is, people had money and confidence, a calm state to buy new real estate. Real estate demand was expected to increase in 2020.
Will coronavirus negatively affect real estate buyers? It would affect but not so much as it seems. People who had stocks of money and wanted to buy a house or apartment and live in it, people who have savings, have stable remote work or have adapted to the new “Internet” lifestyle will still want to buy real estate. After all, people still need to live and raise children somewhere. Of course, there are a number of difficulties that all #realtors and buyers are facing now. All impressions of apartments and houses are canceled. Few people decide to buy property remotely by phone. Some real estate simply cannot be delivered to the market because, due to quarantine, you cannot hire a photographer and take high-quality photographs of real estate, you cannot hire movers, it is difficult to hire a janitor or gardener. But all these difficulties do not prevent people from watching the Internet and choosing real estate.
According to this, I would call the period of quarantine the period of viewing options for buying real estate, due to free time, people look at more options and look for better prices. In the end, this improves the quality of customers, as they are determined with what they want. And at the first opportunity, removal of quarantine or facilitation of the regime, people will start to drive and watch real estate and make decisions faster.Also, banks are now giving better loans. This is one of the most serious differences of the crisis2020 today from the crisis in 2008. Now, if a person has lost his job due to the crisis, banks give a deferral of payments. That is, demand will slightly decrease by several months, but it will not decrease as much as financial markets can fall, but on the contrary, it will actively gain positions after exiting quarantine.
3. Real estate investing was and is at any time one of the most popular and reliable ways of long-term earnings. Some people expect a fall in the real estate market. As a rule, on the expectations of the people, the investor purchases or looks closely at the purchase. Buying at a low price and selling at a higher price is the first and most pleasant rule for investors. And those who invest in the long term are now being activated. This is just the kind of buyers who will be more pleased to buy real estate without physical presence than those who are looking for real estate to live with their family. Also, Americans and Canadians are unlikely to stop buying a property in the Dominican Republic. Since the cost of real estate in the Dominican Republic was and even more so now than in America or Canada. And the conditions for investing were and are positive.
4. The popularity of electronic money is increasing. Cash can gradually go out of circulation if the quarantine is extended. But this is a long-term forecast. Now the number of online money transfers is increasing. People are becoming interested in cryptocurrencies – a type of secure electronic money. Some businesses are considering how to introduce cryptocurrency payments. We have also already introduced payment through cryptocurrencies.
5. Rent. There are practically no deals. There are no tourists in the Dominican Republic, or there are those who want to wait out the quarantine outside their own country. For rent, prices by themselves fall sharply, hotels are closed. A lease will most likely come in the best condition after weakening the quarantine. Since it is most likely impossible to travel to another countries or people will be afraid to travel then they will travel within their country.
After quarantine, many people don’t want to stay home. Accordingly, domestic tourism will increase.All sectors will change. The world will change. But this is unlikely to drag on for more than 8 months.
Sadly, people are dying, it’s sad that now you can’t just go outside ……. but you must admit what an interesting time we live in! How many interesting changes and opportunities await us!