Coronavirus News Asia

Real estate opportunities still viable


Given the latest developments with the Covid-19 pandemic, the business landscape has experienced a considerable downturn. The pandemic has seriously impacted all businesses, regardless of sector, and the long-term consequences are likely to be severe.

Many businesses will close, leaving lots of people jobless. It will damage the global economy, leading to a recession, which according to experts will be worse than the recession of 2008.

Like any other industry, real estate will also be affected because in times of crisis people tend to save rather than spend. However, up until the Covid-19 outbreak, the industry had been generating relatively good profits year after year, making it the ideal investment option for aging populations.

On top of offering a high cash flow and appreciating predictably in value, real estate has offered equity growth through debt reduction. This positive leverage has helped investors keep up with inflation and worry about fewer investment risks.

Investment experts predict that the real-estate industry will continue earning investors higher returns going into 2021. Next year will see most real-estate equity firms realize full growth potential.

The following five real-estate opportunities will also crop up for entrepreneurs to leverage in the coming year.

Property mutual funds

Once we get back to normalcy, entrepreneurs will need an investment option that allows them to limit risk and at the same time minimize involvement in active management. Real-estate mutual funds offer that and more.

This investment method involves real-estate companies using stocks and other specified securities to purchase property on behalf of investors. These funds are on the uptake and are expected to take shape in the coming year, particularly because of increased residential and commercial vacancy rates in some markets.



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