Throughout much of the COVID-19 discussion, we’ve emphasized just how uncharted this territory is. In so many ways, we just don’t know where things will go from here and how deeply and truly the pandemic will affect not just real estate investing, but all areas of life, work, and recreation.
So much is yet to be seen. From this, we’ve seen an increase in stress, anxiety, and a sense of uncertainty.
Let’s be clear: market uncertainty is nothing new. However, this uncertainty is permeating all areas of our lives. We ask ourselves when we’ll be able to get back to “normal,” and when...or if...this will all be over. What will we do if under another pandemic threat this time next year?
So many questions bubble to the surface, be they about the economy, our own ways of living, or job security. While none of us can look into the future to discern the right response, we do have examples to look towards. If we zoom out and look at the world, there are markets — namely China’s — that have emerged from lockdown.
While we are in the midst of stay-at-home orders and the unknown, take the opportunity to look to the lessons we can learn from markets that have come out, seemingly, on the other side.
3 Lessons from Post-Quarantine Real Estate Markets
We will return to “normal.”
Perhaps the most encouraging takeaway from the recovering Chinese market is the truth of something that looks like “normal” on the other side of this. While we doubt our definition of normalcy will return in its entirety (how can it, after such a toll on human life?), in China, we see that people are beginning to do more normal activities. They are living and working and going out.
This seems like such a small solace, but it holds immense gravity. Part of what we have been saying since the pandemic broke is that we have been here before and we will see the other side. When we look at China, we can see that this is true if proper measures and precautions are taken.
The U.S. is not China, so we do not know exactly how things will play out. But we do know — and can see — that there is an end to all of this. This in itself is a hope for our economic recovery, be it in our careers or investments.
Poise yourself defensively.
Many people have begun to talk about how big of an investment opportunity the COVID-19 crisis presents. We find this a bit crass given the circumstances. While we as investors do look for opportunities in any market conditions, there are other priorities at hand here — namely, taking care of our residents appropriately, as well as our own families and communities.
While we always want to be cognizant of opportunity, some things just take priority. Not only that, but we’re seeing that, according to the Chinese market, it’s not the big opportunity that so many are making it out to be. This is because it is not solely an economic issue, but a public health issue.
This isn’t a line item on the balance sheet. Real estate investors would do best to go on the defensive for the better part of their strategies.
Be sure to check out: Manage Risk By Investing in Real Estate Long-Term
Now is the time to be hyper-vigilant against risk. Due diligence is key here, rather than adopting the idea of “sure thing” investments in times of economic distress. These make for short-term, fair-weather investors rather than those who truly build long-term wealth.
Build up your defense — save money, build that emergency fund, and prepare yourself not only to defend against unexpected risk but to hit the ground running when true, lasting opportunities come your way. Don’t compromise your financial position without careful planning and evaluating your moves.
Resident and buyer priorities shift.
Health has become a top-of-mind priority. This hasn’t changed in China, even post-lockdown. Hand-in-hand with health is safety. Residents want to feel safe, secure, and healthy in the places they live and visit. We can only imagine the same will be true here. While these things have always been a priority for residents and homebuyers, it will only become more so in the months and years to come.
For real estate investors, this impacts where we invest and how we care for the properties we own.
Are you investing in communities, cities, and neighborhoods that have a strength of reputation for safety? This can be economic safety, in that the local economy is strong, diverse, and growing. It can also be physical safety — safe neighborhoods, well-kept properties, good school districts and access to essential businesses.
For the real estate investor, the most practical answer is to invest in great markets with an exceptional property management team by your side. Diligent maintenance, clean and sturdy renovations, and responsiveness to resident concerns and problems is key.
Investors can benefit from this level of market access and customer service through REI Nation. With our in-house property management, customer service, and renovations teams, you can be sure that the quality of services you receive is premium across-the-board.
That means, for you, steady and reliable real estate investments that last and, for residents, the safety and security of a sound home in some of the nation’s best markets.
Talk to your advisor one-on-one today!