Real estate investors look to cash in on COVID-19 opportunities



Investors with money to spare are preparing to take advantage of new opportunities in the housing market that have emerged as a result of the COVID-19 pandemic. While housing stock in many areas remains critically low, investors still see potential growth areas and opportunities for home flipping and rentals.

For one thing, some investors say that people who’re holed up in their homes may start to feel as if their current property is somehow inadequate. As such, many see house flips as a potentially lucrative opportunity going forward. House flips tends to be vacant for showings, which is a big advantage in today’s current social distancing climate. And so investors are targeting the lower-end of the market.

In addition, the rental market presents another opportunity, investors say.

“Between the low stock and the decreased amount of churn, investing in rentals right now would be a smart idea, especially since the federal stimulus and unemployment packages should allow some people affected by the crisis to continue to pay rent,” said Christopher Long in a column for Forbes. “Whether you decide to flip properties or rent them, between the depleted stock and the number of institutions exiting the market, the current unfortunate situation does present an opportunity for real estate investors.”

Investors are also seeing opportunities in the single-family rental market for long-term growth.

While housing rental defaults and tenants not paying rent will likely hit the sector initially hard, the low supply of newly built rental homes in many markets could help it recover earlier than other residential real estate asset classes, notes a report from John Burns Real Estate Consulting. Also, as more people’s employment situation changes, they may turn to other forms of temporary housing, like rentals.

About Mike Wheatley

Mike Wheatley is the senior editor at Realty Biz News. Got a real estate related news article you wish to share, contact Mike at mike@realtybiznews.com.

Comments

  1. Great article Mike! A crucial thing that house flippers have to provide to potential buyers is the advantage of virtual tours of properties. More than ever, buyers will now depend less on real-estate agents, but instead look for an enhanced virtual tour experience to make decisions.

  2. So one side this guys telling real estate investor facing great opportunity to buy bulk of house. In another article he said it is great time to list your house for sale. Do you see the connection? It is such a sad fact about American culture where you are allowed to make money by screwing others.

    Stay the heck away from all news article now days about housing market. We have yet to see the worst ever housing market crash in history of 300+ years American life.

  3. It makes me laugh anyone who has rights start publishing housing market articles that makes pig to fly. No one, I mean no one will tell you how hard the housing market crash is on horizon. It is holding up for few more breath that is provided by bank as part of payment deferred program. Housing market was fabricated from decade and it is now due for some serious correction. if you are buyer, then there are many news article on Internet want you to feel fear of being left out, and start opening your wallet so those investor can finally dump what they were holding bulk of house over they are about to lose pant and shirt. Just stay calm, and give it several months. You are going to see the biggest ever housing market jalopy.