Many commercial real estate owners have had to close down or sell their assets during the Covid-19 coronavirus pandemic. As they undergo a period of recovery, they have to reopen their doors and think of new ways to sell to the public. There are various solutions available to help business and property owners as they regain strength after a pandemic.
Put Safety First
In the final days of a pandemic, a commercial building owner needs to put the safety of customers first. This means promoting a cleaner, more sterilized environment for all managers, employees and visitors.
Put the Customers’ Needs First
Every customer’s needs and interests change during a pandemic. Most people focus on buying the necessities first along with the items they want to enjoy. It is recommended that sellers find out the bestselling products in the markets at the moment and reprioritize the products that they are selling in their stores.
Keep Up to Date With the News
The news informs everyone about the state of the pandemic in the local community and in the greater nation. Most importantly, business owners need to know the status of local infection rates and the guidelines that politicians are recommending. Their greatest chance at recovery lies in staying informed and relevant to today’s issues.
Choose Traditional vs. Digital Methods
During the pandemic, many business owners transitioned to virtual settings. They took on more digital marketing methods to reach out to clients online and over the phone. As the health crisis is ending, more companies are returning to their physical offices and buildings. It’s necessary to know which businesses, workers and services will return to their previous states and which ones will remain virtual.
Every business’s marketing campaign should be improved and resumed as it was before the crisis began. This means learning how to market again but to a changed audience. Every marketing campaign needs improving to meet the newest, latest demands in the market.
The commercial real estate industry has never remained stable under any condition. But during the recovery period of a pandemic, most consumers are eager to start buying again, and that includes buying business property. Business owners have many opportunities to recover and bounce back from this temporary downtime.
A lot of people would love to own a vacation home but are intimidated by diving into the realm of real estate investments. That being said, there are certainly a host of benefits for investing in a vacation home. It can actually be one of the best ways for individuals to become property investors and make their way into real estate business. On that note, the following article presents the top reasons for buying a vacation home that people should consider.
Owning a property with Dual-purpose
One of the biggest advantages of investing in a rental vacation home is being able to use it as a second house when spending vacations with family as well as renting it out the remaining months of the year.
Generating Rental Income
Another benefit of investing in real estate properties is having another source of income. Indeed, the money that the second home generates can actually be used to pay for repairs, mortgage, property tax, insurance, and maintenance, just to mention a few.
Increasing Value Through Appreciation
In addition to generating funds on a short-term basis, vacation homes can also allow people to make money in the long run as well, and it happens through natural real estate appreciation. Indeed, the vacation home will most likely appreciate in value with time. This means that individuals can sell their real estate property at a higher price than the one they bought it at, and make profit in the process.
Gaining Tax Deductions
Like a primary investment property, a second house can also offer tax deductions. These deductions pertain to property tax, mortgage payment, rental income, and utilities, just to mention a few.
Learning About Real Estate
For individuals to become experts on real estate, they need to invest in properties and learn how to manage them. That being said, investing in a vacation home is considered to be an easy way in the realm of real estate investment in comparison to other real estate investments, such as wholesaling and being a full-time landlord for instance.
Easy to Manage
A lot of individuals do not have time to manage their vacation homes. So, instead of taking charge of handling the property, a property manager can be hired to take care of the vacation home.
Multifamily investment is continuously rising nowadays. Most property investors prefer it because they enjoy how fast it pays. With little space, many families can be accommodated, leading to greater returns. Following are the four reasons for the rise of multifamily investments.
They’re Always on Demand
Despite how difficult the economic situation is, people will always toil to put a roof over their heads. They will tend to go for cost-effective measures for residence as the situation gets tougher. However, the multifamily property provides a suitable alternative.
The homeownership trend has shifted as the young population finds themselves renting for longer. They tend to capitalize on multifamily properties because rentals are flexible and have low entry barriers. Besides, one can quickly relocate. Following this trend, multifamily properties are always in demand.
Spreading the Risk
Many tenants occupy a multifamily property. This implies that if a tenant defaults rent, the proprietor still has other sources intact. Cashflow to the landlord isn’t highly affected when a tenant vacates.
Reduction of Costs and Expenses
It’s relatively cheap to manage and maintain a multifamily property. This is because some maintenance and management costs are shared. For example, security-related costs are low since the units are under one roof.
People are experiencing harsh economic times. As a result, they flee from high-cost areas to affordable places with less population. With few multifamily properties coming up, the supply is overwhelmed. As a result, investors invest more in developing multifamily housing to bridge the gap. As natural law, when demand is higher than supply, the cost goes up. It’s a motivation to the property owners.
Flexible Financing Options
Investors feel encouraged to dive into multifamily property development due to the number of financial options. The government offers loans with few restrictions making it easier for them to develop.
Multifamily housing is on the rise since it’s the real deal in the current times. It has proved to be a steady asset class in real estate investments. As investors’ gears to put money in the right place, multifamily properties are a choice they should consider.
The most popular choice among real estate investors, the single-family house, is well understood and profitable. Even in a market prone to recession, many people prefer single-family homes over condominiums, duplexes, or triplexes when it comes to investing. However, not everyone is delighted at the idea and wants to follow that route. Some investors may consider investing in multi-family units. And multi-family dwellings, especially with fewer units, tend to increase the value that matches closely with single-family homes, and their cash flow is a lot better compared to single-tenant dwellings.
This information talks about the details of finding a multi-family property and offers insight on why it can be a pleasing alternative.
Location, Location, Location
Location is of absolute importance in determining the value of a multi-family property. When the neighborhood has well-maintained lawns, quality homes, clean sidewalks, and proper signaling at intersections, it’s easier to find tenants. If there is construction activity in the neighborhood, it’s a sign of growing demand. On the flip side, if crime is on the rise in a particular area, people want to move away, reducing the neighborhood’s overall value. A change in zoning from residential to mixed-commercial use can result in a significant price reduction.
What is Inside Matters
The physical condition of the property, age, and structural stability have a noticeable effect on property value. The choice of paint color, cabinets, countertops, and flooring material matters too. The more bizarre the upgrades, the more likely that it’ll lose its market value. Likewise, the quality of craft, both in terms of original construction and recent upgrades, should be considered before purchasing a multi-family property.
Hiring a Real Estate Agent
A real estate agent can help find a multi-family property unless you insist on doing it yourself. With an agent’s assistance, you can easily wade through many unique situations, questions, and doubts that are usually not encountered in a typical single-family home buying. For example, your loan interest rate and type of purchase ( residential or commercial ) will depend on whether you are buying a duplex or an apartment with five or more units. Should you hire an accountant as well? Probably yes, if the number of units and complexity of your overall tax situation increase.
Making the final decision to sell your investment property isn’t easy. You must make certain you are selling at the right time. This will help put you in a position to maximize your profits at the closing table.
Should You Sell Your Investment Property?
There are many schools of thought when it comes to choosing the right time to sell an investment property. Some real estate experts believe that holding onto investment property for a long period is a sound strategy. However, this approach may not be ideal for your situation.
Here are some situations that may indicate it’s time for you to sell:
- You’re ready to retire – Selling your investment property can free up money for your retirement. Please keep in mind that selling an investment property after retiring could have a huge impact on your pension.
- You’re interested in investing in another market – You may want to consider selling if you find a property in another neighborhood.
- A major change in your life – A big change in your life may force you to think about owning an investment property. The following reasons force many people to sell their investment property: the birth of a new family member, being laid off from the job, death in the family, and sudden illness.
- The neighborhood is changing – If the market value of the homes in the area has increased, it may be time for you to cash in. However, you may want to think about selling if the market value of the homes in the area has gone down.
How to Sell Your Investment Property the Right Way
So, you’ve decided to sell it. Dozens of real estate selling systems have emerged over the years. However, we must point out that many of them are complicated.
Here are some simple steps that can help you sell your investment property with ease:
- Hire an experienced Realtor – It will cost you 6% of the selling price, but a Realtor’s services should not be undervalued. They play an integral role in the selling process. For example, they know how to market your investment property, and find a qualified buyer within a reasonable amount of time.
- Listen to your Realtor – You need to take heed to their advice. If you don’t, you may not get to the closing table.
- Make upgrades to the property – There’s an old saying in life, “It’s the little things that count.” This adage holds its weight in real estate investing. Making upgrades to your property will make it more appealing to prospective buyers. This will improve your chances of getting a buyer.
- Sell at the right price – Pricing your property properly will have a positive impact on the selling process. If your property is listed slightly below its market value, there will be more demand for your house.
- Exercise patience – It may take several months for someone to step up to the plate, and buy your property. However, exercising patience will help you make it through the selling process.
- Don’t be afraid to say no – Knowing the true market value of your home will help you avoid low-ball offers. The right buyer will eventually come along.
Selling is an investment property is a big decision. If you’re ready to cash in, there’s no reason for you to reinvent the wheel. The tips listed above can help you sell your property like an experienced real estate professional.