In the COVID-19 era, new COVID variants, or the fact that cities change their color to red, have no iimpact on the real estate field.
A good time for investing in real estate
At the present time, we are witnessing an uptrend in real estate prices, a situation pleasing to quite a few entrepreneurs and mortgage consultants, many of whom have benefited financially from it. What is its significance, however, for the investing public? After a long period when there was a felt lack of supply, and many refrained from purchasing real estate [not knowing what tomorrow might bring and how this so-unpredictable year would wind up], construction suddenly gathered momentum and purchase tax was reduced. All these factors help us to understand that this is a good time for real estate investment, so long as you can still utilize these benefits and the high demand prevails.
The current state of lands for investment
If there is a field in which COVID-19 had very little impact, it is the field of real estate. Currently, most land in Israel belongs to the Israel Land Authority (ILA), which is entrusted with issuing tenders for launching projects. At the same time, since the country is affected directly by the nature of land marketing, ILA is seeking to maximize profits. How is this connected to COVID-19? After a year during which the country experienced a shaky economic situation, the pressure on ILA has increased significantly. Therefore, at a time when there is an attempt to reap maximum profits from real estate projects, housing prices are continuing to rise steeply. On the other hand, someone electing to invest in land would likely find himself presented with highly worthwhile and attractive deals that would boost his profits.
The time has come to change the laws in the land realm
If we were to stop for a minute and give a tip in the land realm [in the hope that someone in the upper echelons is listening], we would say that it would be beneficial to limit the maximum prices of entrepreneurs’ offers; and at the same time, it would be prudent to increase competition, so that not all the cards remain in one entrepreneur’s hands. Why so? So that the entrepreneur will stop raising housing prices unmitigatedly. In conclusion, COVID-19 somewhat upset the real estate field. Nonetheless, those who know where and how to look, can find excellent opportunities. Today, considering the realm of real estate is pretty much “immune”, what remains is just to read the expected fluctuations and make use of the various opportunities. They certainly exist.