COVID 19 Diaries - What Asset To Buy During A Pandemic!

I daresay that the national precautionary directives over the last three weeks have caused many of us to restrict our movement, limit our social interactions and reassess our priorities in general.

All over the world, people are coming to terms with several lifestyle changes and adapting to a “new normal” for what we all hope will be a short period of time.

Of the many conversations I have been a part of since the global spread of COVID-19 escalated, many of them have revolved around its negative impact on modern life.

However, it has become increasingly clear that there are some “positives”, from the reduction in environmental pollution, to families spending more quality time through self-isolation, and even having technology that allows us stay connected.

Today, I would like to point out another one you may not have considered, that this is the best time to invest in real estate.

As bizarre as my last statement may sound, history has proven that economies are cyclical; this means that a seasonal economic downturn is always followed by an economic peak.

The fear of a global economic recession is very valid as many businesses have come to a halt, particularly those in the travel / hospitality industries.

Ghana is also expected to record its own cycle of economic lows and highs with a proportionate rise in the cost of goods and services, especially since the country has such high import volumes.

Yet, the fact is that the current situation will be followed by a period of economic recovery that will see an increase in consumer spending.

According to a Bloomberg report on 12th March 2020, China’s luxury-goods market has already begun to rebound as quarantine measures relax, and the Chinese are engaging in “revenge spending” sprees after weeks of government-mandated lockdowns.

Please note that China’s crisis started in late December and by now, 3 months after, the economy is already booming, to soon reach peaks higher than before the crisis.

This turn of events is only going to be replicated around the world as the pandemic comes under control.

Allow me to use two conditions in the financial market to better illustrate.

The first condition is the bull market (or seller’s market) when prices of traded bonds, currencies and commodities are rising or are expected to rise.

It is characterised by investor confidence and the expectation that strong results will prevail for a while.

The second condition is the bear or buyer’s market, and it is the exact opposite of the first.

In fact, it is known as a “buyer’s market” because it offers the best opportunity to buy as both prices and investor confidence are low.

Thus, the very season in which a majority of people are not concerned with growing their investment portfolio is the one that offers the greatest return in the long run.

Those who understand this principle take advantage of low prices of stocks and assets to increase their wealth.

In the words of investing tycoon Warren Buffet, one must “be fearful when others are greedy and greedy only when others are fearful.”

This is why now is the best time to invest in real estate, which is not only a tangible asset but one that appreciates in value over time.

The current crisis has demonstrated how fragile financial security is for many people around the world, and a major lesson from this experience is the need to diversify one’s income through multiple sources.

Real estate is one of the safest investments one can make: what other asset can generate additional income or be traded for a profit while largely insulating you from global market crashes and uncertainty?

How much profit you make depends on a combination of factors, first of which is how much it costs you to begin with.

This is why it is important to invest in real estate even when everything looks bleak.

Craig Hall, a real estate mogul and author, once had this to say: “Timing is often the single most important factor determining the success or failure of a real estate transaction.”

As someone with years of experience in real estate across different markets, I can confidently say that the best time to buy real estate is right now.

An investment in real estate, today, could make the difference between your preparedness or lack thereof for your financial future.

It costs nothing to schedule an online appointment with a reputable real estate developer to get a better picture of what your options are.

Knowledge is power, and I guarantee that you will not regret knowing more about real estate investment in times like these.

The more you know, the better you can prepare towards an investment.

Author: Jorge Osorio is Sales and Marketing Director at Devtraco Group (www.DevtracoGroup.com)