Real Estate Market During a Pandemic
Posted by admin at August 19th, 2020
The Real Estate market has not seen significant losses if any at all. In Los Angeles pricing is still at all-time highs for the majority of the properties. There are a few reasons. I would go on a limb and say that the main reason is that there’s a lot of involvement and assistance from our local and federal government. The federal government has interest rates at all-time lows. Meaning the interest they charge banks to borrow money is at near 0%. Therefore when you apply for a mortgage from these banks they are able to give you a 15-year loan at 2.5% or a 30-year loan at 3%. So why rent when you can own and pay a little higher mortgage than you would have from renting?That’s the key to this situation. There’s many Buyer’s on the hunt as first-time home-buyers. The banks are taking longer in processing and being even more selective when approving loans. If you are unemployed they won’t even talk to you. But for the 90% or so that are still employed, buying Real Estate now is still a solid investment. As long as you can afford the monthly mortgage payments, even if you lose your job and have a “rainy day” savings fund, then you should be in an excellent position.
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