There are quite a few question marks surrounding the issue of real estate investment. There are quite a few options and at the same time quite a few financial risks. However, if there is one thing that is known, it is that real estate constitutes stable and even profitable ground. People understand that it is not right to rely solely on the safe interest rate that a variety of solid avenues in the bank offer, but rather people understand that in order to make a big profit, one must look at the whole picture and examine what relevant opportunities are. However, alongside the fact that real estate investment is indeed promising, there is no escape from the following question: Is now a good time? And here we come to explain why experts in the field not only think that this year is the best time to act, but are also certain that this is a one-time window of opportunity.
An Island of Security – Without Extreme Fluctuations
It is important to understand that, compared to a variety of investment avenues, the real estate sector is perhaps the only one that is not sensitive to extreme fluctuations. Hence, even if we are still deep in the “Corona era”, we can be sure that the value of the property we purchased (or invested in) will not be lost, nor will it drop significantly. There may be a minimal price drop for a period, but if we wait a little, there is a pretty good chance that the value of the property will rise again and even surprise us for the better. Hence, if in such a turbulent period you are looking for a profitable and safe investment avenue, the real estate sector certainly constitutes stable ground.
Demand – the most significant parameter of all!
With or without the coronavirus, the fact is that demand for residential properties has not only always existed, but has recently even intensified and become much more noticeable. Also, if we add to the equation the fact that there is more demand than supply, we can once again understand how investing in real estate is a sure and economic channel. Not only is it an investment in a tangible asset, and not only is the real estate market not suffering from significant fluctuations, but the population growth rate is also on an upward trend. So what is the conclusion? The high demand makes the value of the properties much more significant!
When projects are stuck, investors profit
As we mentioned, demand is much greater than supply, and here we would like to add another statistic to the equation – the population is growing, and at the same time there is a significant halt in construction starts. Shall we explain? These are 3 complementary factors:
- A multitude of developers have slowed down in the last two years.
- Quite a few investors have dropped out of the game.
- Construction plans that were supposed to be promoted on behalf of the state have stalled, if only due to the difficulties associated with forming a government.
In light of all this, as long as there is no significant change in the construction boom, we will remain in the same situation, a situation in which there is much more demand than supply, a fact that leads to a clear trend in the value of apartments. Hence, if you want to invest in real estate, now is definitely the time, as long as you can purchase apartments at prices that are considered reasonable and at the same time there is the knowledge that in quite some time the property will be worth much more, meaning that a real estate investment will lead to a nice profit.
Trend in Motion – Price Increase
If we stop to try to understand the ongoing increase in real estate prices, we will note that this is a phenomenon that has been felt for years, and that according to all forecasts, there is no plan to stop, because as we mentioned, demand is greater than supply. However, alongside the fact that the situation has been like this for a long time, it must be understood that the coronavirus has only deepened the gap (as mentioned during the coronavirus period, fewer entrepreneurs and investors acted), and therefore the gap in question creates a special point in time for action, for a profitable investment in real estate. Shall we expand? A host of entrepreneurs are already returning to the playing field, and therefore, before new apartments are added, it is better to purchase apartments for investment, so that you get to earn the most, and here the meaning is twofold: as long as you purchase as soon as possible, you can avoid a further increase in prices, and as long as you purchase quickly, you can sell the apartment with a safe, high, and known profit in advance.
Before the Purchase Tax Increases Again
It was 2015 when the Minister of Finance decided to raise the purchase tax to 8%. This is a tax that is transferred to the state following real estate investments and according to the tax brackets, meaning that the more expensive the transaction, the higher the tax. However, the Corona has changed the balance of power for the better. The desire to return to investing in local real estate led those in government to make a decision to significantly lower the tax from 8% to 5%. So what is the news for the local investor? The simple fact that there is no knowing when the move will change back and therefore if you want to profit from a Blue and White real estate investment,
you must act as soon as possible. In conclusion, we note that as long as the purchase tax is low, as long as it is known that property prices are on the rise and as long as it is known that demand is much greater than supply, it is definitely better to act – now is the time to invest in local real estate
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