A golden opportunity to buy real estate during the pandemic is upon us. With mortgage rates falling to near all-time lows, the S&P 500 at all-time highs, and a lot of people still fearful, chances are higher you can get a better real estate deal.
Everyone is spending more time at home now. Therefore, the intrinsic value of a home has gone way up. People are looking to buy larger homes with more amenities. Demand for remodeling is through the roof! Yet, given mortgage rates have collapsed, affordability is up.
With the mass media hyping up the demographic shift away from big cities to small cities, it’s time for savvy investor to go the other way and focus on big city real estate again.
That said, secondary cities, also called 18-hour cities are also very attractive given lower valuations, higher net rental yields, and less overall density. Rent prices keep going up in 18-hour cities and rents in 24-hour cities like NYC and SF are rebounding once again.
Let me explain in more detail why I believe now is the time to buy real estate in again for 2021 and beyond.