TexasEscapes.com HOME Welcome to Texas Escapes
A magazine written by Texas
Custom Search
New   |   Texas Towns   |   Ghost Towns   |   Counties   |   Trips   |   Features   |   Columns   |   Architecture   |   Images   |   Archives   |   Site Map

Columns

Columns | Go Far With Kovar

Is Now the Time to
Invest in Real Estate

by Taylor Kovar
Hi Taylor - I'm wondering how this pandemic and the shutdown might affect real estate. Is it still a solid investment strategy, or should I stay away for a while? - Stan

Hi Stan
- This is a great question as it's pretty likely there will be some impact on real estate, but it's not clear how hard we're going to feel it. Unlike the 2008 crisis, our current economic woes aren't tied directly to the housing market. Instead, buyers and renters will have to adjust to other factors that influence their bottom line.

1. Low interest rates. Rates were low before the pandemic shut everything down, then they were absurdly low, and now we're bouncing between pretty low and very low. That's a convoluted way of saying that it's a solid time to refinance your mortgage. If you were already looking to buy a property, even if the price hasn't dropped, you might be able to get loan terms that wouldn't have been available a few months back. It's a bit of a conundrum as the lowered rates won't do much, if anything, to alleviate the jobless crunch, but it does make it easier for those with means to buy property.

2. Tentative buyers.
Even with the awesome rates, it's understandable that the number of interested buyers has dropped. There are plenty of reasons to be hesitant, among them are job security and an expectancy that market prices will go down. Since nothing is guaranteed, I don't think anyone should hold off on buying a house they can currently afford. The lack of competitive buyers might be more in your favor than a drop in market value. However, with unemployment on the rise and industries still shut down, it's hard to imagine that real estate sales and prices won't take a dip in the coming months.

3. Renting market. This might be the area of most concern, because what happens to the renters market usually has an impact on all sectors. As waiters, bartenders, part-time students, retail staff, personal trainers, hospitality workers and so many more look for new jobs or start taking unemployment, we can expect to see a lot of apartments and rental properties become available. These vacancies would typically be filled by other members of the working class, but those prospective tenants are in the same boat as the ones giving up their leases. The domino effect of people losing their jobs and moving out of their apartments won't take too long to reach the real estate market, since renters and buyers don't have too many degrees of separation.

We don't know how deeply we'll feel this economic downturn, or how long it will last. From a real estate perspective, it's good that the crisis isn't directly tied to housing, but it would be naive to think the market will go untouched by this pandemic. Thanks for the question, Stan, and I hope your investing plans work out!


Taylor Kovar May 12, 2020
More "Go Far With Kovar"
Legal Disclaimer: Information presented is for educational purposes only and is not an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. To submit a question to be answered in this column, please send it via email to Question@GoFarWithKovar.com, or via USPS to Taylor Kovar, 415 S 1st St, Suite 300, Lufkin, TX 75901.

"Go Far With Kovar"

  • Good Summer Jobs for Teenagers 5-6-20
  • Tackling Student Loans and Credit Card Debt 4-28-20
  • Laid Off: I Can't Afford My Car 4-22-20
  • Financial Tips: What You Can Do During COVID 4-13-20
  • When Will a Corona Vaccine Be Ready? 4-6-20

    More »

  • More "Go Far With Kovar" ›

    More Columns

     

     

     

     

     

     

     

     



     


    Texas Escapes Online Magazine »   Archive Issues » Home »
    TEXAS TOWNS & COUNTIES TEXAS LANDMARKS & IMAGES TEXAS HISTORY & CULTURE TEXAS OUTDOORS MORE
    Texas Counties
    Texas Towns A-Z
    Texas Ghost Towns

    TEXAS REGIONS:
    Central Texas North
    Central Texas South
    Texas Gulf Coast
    Texas Panhandle
    Texas Hill Country
    East Texas
    South Texas
    West Texas

    Courthouses
    Jails
    Churches
    Schoolhouses
    Bridges
    Theaters
    Depots
    Rooms with a Past
    Monuments
    Statues

    Gas Stations
    Post Offices
    Museums
    Water Towers
    Grain Elevators
    Cotton Gins
    Lodges
    Stores
    Banks

    Vintage Photos
    Historic Trees
    Cemeteries
    Old Neon
    Ghost Signs
    Signs
    Murals
    Gargoyles
    Pitted Dates
    Cornerstones
    Then & Now

    Columns: History/Opinion
    Texas History
    Small Town Sagas
    Black History
    WWII
    Texas Centennial
    Ghosts
    People
    Animals
    Food
    Music
    Art

    Books
    Cotton
    Texas Railroads

    Texas Trips
    Texas Drives
    Texas State Parks
    Texas Rivers
    Texas Lakes
    Texas Forts
    Texas Trails
    Texas Maps
    USA
    MEXICO
    HOTELS

    Site Map
    About Us
    Privacy Statement
    Disclaimer
    Contributors
    Staff
    Contact Us

     
    Website Content Copyright Texas Escapes LLC. All Rights Reserved